Segregated funds are very common investment vehicles and have some advantages over the conventional matured funds. Higher MER’s of segregated funds sometimes make investors thinks that is that worth? The easy answer is it depends.
What are the key advantages of segregated funds?
Segregated funds offer two key advantages over mutual funds
2) Creditor protection
Segregated funds come with difference guarantee options. The two types of guarantee the segregated funds offer are
1) Death Benefit guarantee
2) Maturity guarantee
Death benefit guarantee means that if it is annuitant dies and for whatever reason the portfolio value has gone down still the beneficiary will get the principal amount invested. This works good for individuals who are in older life cycle and are aggressive investor.
Maturity guarantee is not that attractive as most of registered investments have a longer maturity duration.
Business owners are often expected to liability lawsuits and segregated funds have creditors protection.
How segregated funds can be a part of your estate plan?
Since segregated funds are insurance contracts and therefore beneficiary designation is very simple. Therefore, the assets do not have to go thru the complex probate procedures and the proceeds can go to the beneficiary directly bypassing the probate.
Are the investment options save an investment funds?
As segregated funds are sold only by insurance companies and that is why investment options are limited. Still if your financial advisor is experience and knowledgeable, he can construct a portfolio that might suit your long-term grants. You can call us for more information at 416-839-4561.
WHAT CLIENTS SAY
REVIEWS & TESTIMONIALS
My insurance needs are very unique. I was also on a very limited budget. I had shopped around a little but all I was getting were raw quotes with no great details. I was later referred to Peel Financial Services and I got my perfect insurance.
There were so many options to choose from. Even though I am very healthy I just wanted to make sure I was starting at the right time. I'm happy with the insurance package I finally chose out of several great options presented to me.
I felt I had to reach my 40's to start considering life insurance. After doing a little research I realized the benefits of being insured even at a very healthy age. I love the rates I got. Thanks!