Segregated Funds

Segregated funds are mutual funds offered by life insurance companies. The fund assets are separated or "segregated" from the insurance company's other assets to protect the investor in case of the company's insolvency. When you purchase a segregated fund, you are actually buying an individual variable insurance contract. Segregated funds offer investors several advantages over regular mutual funds:

Guaranteed Principal
Most funds guarantee 100% of the principal invested at the end of 10years.

Reset Feature
The guaranteed principal can be reset or "bumped up" during the 10 year period.

Creditor Protection
Fund assets are generally protected from creditors.

No Probate Fees
Fund assets pass directly to beneficiaries, avoiding costly estate and probate fees.