Segregated Funds:
Segregated funds are insurance contracts that offer an alternative to mutual funds and are equivalent to mutual funds, with some very unique benefits not available with a mutual fund investment. Individual Variable Insurance Contracts, are fund-based like mutual funds. They come equipped with a 100% guarantee of deposits less reductions for withdrawals or fees at maturity or death, regardless of the market value of the funds. Maturity is selected by the client, but must be at least 10 years after the first deposit. They have all the performance and choice of mutual funds.
Segregated Funds vs. Mutual Funds:
- Offer guarantee of principal at maturity and death
- Creditor protection
- Offer avoidance of probate
