Segregated
Funds: How They Work
Author:
Ivon T. Hughes
Segregated funds combine a mutual fund-like investment with the protection
of an insurance policy. As with mutual funds, an investor's money is pooled
to purchase a portfolio of securities. The value of the units purchased is
based on the value of the underlying securities and will change as the market
changes.
Segregated Funds: Are they right for you?
Segregated Funds are right for you depending on your objectives, the length
of time you plan to invest and your risk tolerance. Entrepreneurs, business
owners and people whose work exposes them to professional or personal liability,
may wish to take advantage of the protection that guarantees give.
Segregated Funds offer these features and benefits:
Potential creditor protection
Segregated Fund investments may be protected from creditors - If
1. the funds are invested for at least one year,
2. the investor is not already insolvent at the time of purchase,
3. there is no fraudulent intent at the time the purchase is made in the
Segregated Fund and
4. a "family-class" beneficiary is named.
Segfund and probate fees
No. On the death of the annuitant, proceeds from Segregated Funds are not
subject to probate fees.
Basic guarantee
Up to 100% of all deposits made to the policy (less withdrawals) on death
and at maturity.
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: [email protected]
Web: http://www.trustco.ca
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