A segregated fund is an investment fund that you hold within an insurance contract. The term "segregated" refers to the fact that your investment is separated from the general assets of the insurance company. Your insurance contract dictates the insurance protection you receive. So segregated funds are an insurance contract that provides you investment management plus protection.
Segregated funds provide you with access to diversified investment portfolios. Diversification – or spreading your assets among a variety of different investments is an investment strategy designed to lower a portfolio's overall risk while enhancing returns over time.
Potential Creditor Protection – This feature is of primary concern for business owners or professionals as their assets may be exposed to creditors. You may be able to achieve potential creditor protection by naming a "preferred" or "irrevocable" beneficiary. The key relationship is between the life insured (the annuitant) and the beneficiary.
Estate Planning Made Easy – Proceeds of your contract are paid directly to your beneficiary, avoiding the time and expense of probate. Also, probate is a public process and information associated with it is accessible to the public. By helping your heirs bypass probate, segregated funds can ensure that your personal decisions and information remain the way they were meant to be...personal.
Consumer Protection – Segregated funds are eligible for coverage by The Canadian Life and Health Insurance Compensation Corporation. This plan protects Canadian policyholders, within limits, from loss of benefits in the event of the insolvency of the company.
Solutions Financial wants to make your investment grow without worry, through ease of planning, flexibility and investment choice.