Segregated Funds
Explore how seg funds combine investment portfolios with insurance contract features like guarantees and beneficiary planning.
What they are
Segregated funds are insurance contracts that invest in underlying portfolios. They offer guarantees (for example 75% or 100%) on death or at maturity, plus potential creditor protection and named beneficiary designations.
Why people use them
- Contractual guarantees at maturity and/or death
- Estate planning with beneficiary and successor owner designation
- Potential creditor protection in certain situations
- Long-term growth with insurance contract features
Key choices
- Guarantee level (typically 75% or 100%)
- Fees, funds, and investment approach
- Reset options (where available) and contract maturity terms
- How they fit with RRSP/TFSA/RRIF planning