Having segregated funds is essential due to their unique combination of insurance and investment features. These funds offer capital protection, potential for growth, and the ability to bypass probate, ensuring beneficiaries receive the full proceeds. It's a secure and efficient way to safeguard and grow one's wealth.
— What is Segregated funds?
Segregated funds, also known as individual variable insurance contracts (IVICs), are a type of investment product offered by Canadian insurance companies. They combine features of both mutual funds and life insurance, providing investors with the opportunity for growth while offering certain guarantees and protection.
Segregated funds pool money from multiple investors to create a professionally managed investment portfolio. These funds can invest in various asset classes, such as stocks, bonds, and money market instruments, depending on the fund's investment objectives and strategy. The funds are typically managed by experienced investment professionals or fund managers employed by the insurance company.
- Principal Protection Guarantee
- Potential for Investment Growth
- Estate Planning and Probate Avoidance
- Creditor Protection
- Professional Investment Management
- Death Benefit Protection
- Tax Advantages