Segregated Funds: Secure Growth, Protect Your Legacy
What Are Segregated Funds?
Segregated funds (seg funds) are a unique financial tool combining market-driven growth potential with built-in insurance protection. Unlike traditional mutual funds, they provide guaranteed security for your investment, ensuring that your loved ones receive a minimum payout, even during market downturns. This makes seg funds a powerful choice for long-term financial planning, retirement security, and estate transfers.
Key Benefits of Segregated Funds
* Guaranteed Death Benefit – Protect Your Investment
One of the biggest advantages of segregated funds is the death benefit guarantee, which ensures that 75% to 100% of your original investment is paid directly to your beneficiaries—even if market conditions decline. This provides peace of mind and financial security for your family while helping you avoid unnecessary losses.
* Market Downturn Protection – Stay Secure in Any Market
- Unlike traditional investments, segregated funds offer a financial safety net. If the market drops, your principal investment remains protected, reducing the risk of major financial losses.
- Mutual funds are fully exposed to market volatility, meaning investors risk losing a significant portion of their investment.
- Segregated funds provide a guaranteed minimum payout, making them an ideal option for risk-averse investors and retirees.
* Probate-Free Transfers – Faster Payouts for Beneficiaries
One of the hidden costs of estate planning is probate—the legal process of validating a will. Probate can be expensive and time-consuming, delaying your beneficiaries’ access to funds. With segregated funds, the death benefit bypasses probate , meaning :
- Direct, tax-efficient transfer of assets to your heirs.
- Faster access to financial support for your loved ones.
- No legal complications or court delays.
Who Should Consider Segregated Funds?
- Retirees & Pre-Retirees – Preserve savings and ensure financial stability in later years.
- Estate Planners – Bypass probate and simplify wealth transfer to loved ones.
- Risk-Averse Investors – Get market exposure with a built-in safety net.
- Business Owners – Protect corporate assets and ensure financial continuity.