Segregated Funds

Segregated funds are similar to mutual funds, but are sold only by life insurance companies.

With segregated funds you have many of the same choices, including:

Money market funds
Bond funds
Equity funds
Balanced funds
...and so on. If you are not an experienced investor, you may want to get some advice about whether or not segregated funds are a good investment for you.

What makes segregated funds different from mutual funds?

1. Maturity guarantee:
Unlike a mutual fund, a segregated fund has a maturity date, such as 10 or 15 years. If you hold the fund to that date, you will be guaranteed to get a certain amount of your money back. You may not make money, but you are not going to lose everything you invest, either. The amount of the guarantee ranges from 75% to 100%. Fees may be slightly higher to pay for the guarantee.

Tip: Segregated funds can be good for some long-term investors who want to invest in equity mutual funds but don't like the risk.

2. Guaranteed death benefit:
Segregated funds pay a guaranteed amount to your beneficiary if you die. Your beneficiary gets this amount even if the value of the investments in your segregated fund is less.

3. Protection from creditors:
This may be important for small business owners, or investors nearing retirement. No other types of investments held in RRSPs and RRIFs are currently protected from creditors across the country.

Remember: Segregated funds take some of the risk out of investing in equities

Twin Power Financial can help you find out if this type of investment fits in your portofolio.  Contact us to find out more.


Below is a list of all investments vehicles we can help you utilise to get the most out of your money.  Please click on the links below to find out more information about what Twin Power Financial can do for you.