Segregated Funds

A Seg Fund is a type of investment fund administered by Canadian Insurance Companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death.  As required by law, these funds are fully segregated from the company’s general investment funds, so that if a company went under there would be sufficient funds set aside to meet the guarantees.
A Seg Fund is an investment fund that combines the growth potential of a mutual fund with the security of a life insurance policy. Like mutual funds, Seg Funds consist of a pool of investments in securities such as bonds, debentures and stocks.  The value of the Seg Funds fluctuates according to the market value of the underlying securities.  Many Seg Funds have resets so the value of the fund and/or income flow could go up.
Insurance Contracts
Maturity Dates
Maturity & Death Guarantees
Potential Creditor Protection
Probate Protection
Reset Option
Cost of the Guarantees
Comparing Income Options