Segregated funds are a unique financial product that bridges the gap between investment and insurance. Here's a brief overview of what differentiates a segregated fund from a mutual fund:
Investment and Protection: Segregated funds offer the opportunity to invest in a variety of assets, similar to mutual funds. They can be found within universal life insurance coverage. How it usually works is that a portion of your premium payment is placed in your investment account, so you can invest in your future while remaining protected.
Principal Protection: One of the standout features of segregated funds is the potential for principal protection. Depending on the contract, a portion of your initial investment or all of it may be guaranteed upon maturity or death, ensuring your beneficiaries receive at least the guaranteed amount. This is normally 75 percent or 100 percent.
Maturity and Death Benefits: In the event of your passing, segregated funds provide a death benefit to your beneficiaries, often greater than the guaranteed amount if the investments have performed well. If you survive the investment term, you'll receive at least the market value of your investments at maturity.
Creditor Protection: Segregated funds also offer a degree of protection from creditors, making them attractive for individuals concerned about potential financial liabilities.
Probate Avoidance: Unlike some other investments, segregated funds bypass the probate process, which can save time and costs in estate settlement.
Segregated funds provide a unique blend of investment potential and life insurance protection. They are particularly attractive for those seeking to grow their wealth while ensuring financial security for themselves and their beneficiaries.
Where do we come in?
M.S. Insurance prides itself on being an independent broker - which essentially means we have access to the best Canadian life insurance policies you can think of - RBC, IA Financial, Manulife, you name it! We are changing the way Canadians approach life insurance by working for our clients. Plain & simple.
Find out more about segregated funds, and how you can invest within your insurance policy through us! Book a consultation with us today, free of charge, or leave us a message on our homepage!