Segregated Funds

Segregated funds are "pooled" investment contracts issued by Life Insurance Companies. The term "segregated" is derived from the fact that the fund holdings are kept separate from the general assets of the Life Insurance Company. Similar to mutual funds, segregated funds can hold a variety of asset classes - including stocks, bonds and cash, amongst others - and offer a wide spectrum of investment styles. Over and above this, segregated funds offer options, benefits and guarantees not normally available with traditional securities.

These include:

  • Maturity and Death Benefit Guarantees
  • Named Beneficiary/Estate Planning Strategies
  • Tax Advantages
  • Potential Creditor Protection