Segregated Funds: Canada's Unique Insurance Option

Segregated Funds: Canada's Unique Insurance Option

Canadians across the country are inquiring more and more about savings plans and mutual fund alternatives. Many look to RRSPs and TFSAs, but have you considered the unique option of a segregated fund? Take advantage of this insurance product for Canadians, and see its big advantage over mutual funds and how it is protected from potential creditors.

What is a Segregated Fund?

Segregated funds are an insurance product, only offered to Canadians. Very similar to mutual funds, segregated funds are when a large pool of money is invest in stocks, bonds, and other securities with the goal of growing the entire value of the pool. Segregated funds are structured more like insurance contracts, in that they have the same benefits as a mutual fund (excluding maturity and death benefits), but also offer creditor protection.

Segregated Funds and Creditor Protection

If you are concerned with protecting your money against a possible case of bankruptcy, despite how unlikely this may be, you should consider the protection a segregated fund may be able to offer. Under provincial laws, the interests of insurance beneficiaries may override the claims of creditors.

If the beneficiary you have named on your policy qualifies, your segregated funds are generally protected against seizures by your creditors. If you are a business owner or a professional wanting protection against an unexpected lawsuit or bankruptcy, a segregated fund can be a big advantage.

What Is the Main Advantage of a Segregated Fund?

The main advantages of a segregated fund are the guarantees! Segregated funds guarantee 75% to 100% of your contributions (less your withdrawals) when the contract matures or on your death.

POST COMMENT

Health Insurance and Divorce in Minnesota – Who Pays? Texas Car Insurance Policy Quotes How To Find The Cheapest Insurance Company Finding Good Car Insurance With No License How To Pay Less For The Best Rated Car Insurance How To Get A Car Insurance Quote Without Personal Information How Can You Get Cheap Car Insurance In Texas? How To Get Cheap California Car Insurance Top Rated Car Insurance Is Available Where To Get The Cheapest Car Insurance The Secrets To Finding Top Rated Car Insurance Tips On Finding Car Insurance With No Down Payment Tips On How To Find Cheap Car Insurance Quotes Online