Segregated Funds?????

Segregated funds are the common name for an independent variable insurance contract. They are very similar to mutual funds accept they are only offered through insurance providers, offer a guaranteed death benefit amount, and protection from creditors.

Segregated funds are long term investments with a minimum investment horizon of ten year. Normally the death benefit can be adjusted twice to lock in gains during the contracts life. This is seen by some investors as a good way to partake in the stock market while mitigating the risk.

As with all insurance contracts that have a cash value protection from creditors is guaranteed by law. People who carry a the potential to be sued, like Doctors, Lawyers, accountants, may be interested in this feature as part of sound risk planning.

As mentioned Segregated funds are like mutual funds. Often they are a clone of the holding in a mutual fund but charge a higher management expense fee for the guarantees. Segregated funds are also eligible for RRSP, TFSA, and RESP accounts.

Think that segregated funds might be good for your financial plan? Talk to your financial advisor. If you don’t have one let me know, I think I know someone who can help