What are
Segregated Funds?
Author:
Ivon T. Hughes
Segregated
funds are similar to mutual funds but hold their investment capital within
an insurance contract.. Segregated funds, like mutual funds, allow investors
to diversify with various types of investments with different professional
fund managers.
Segregated
funds, being purchased under an insurance contract are governed by the Insurance
Act and therefore have the advantages of a Death Benefit Guarantee and Maturity
Guarantee where up to 100% of the capital is guaranteed at death or maturity.
In addition
to the above benefits, a segregated fund has other advantages. If a beneficiary
has been named, probate is avoided, meaning that the heirs will receive their
legacy sooner and at far less expense.
And not to
be forgotten is the feeling of security of a holder of a segregated fund.
Whether the fund at maturity is up, down or sideways, there is a built in
guarantee of a return of your funds of up to 100%. The cost of that feeling
of wellbeing when markets are volatile, can help you sleep better at night.
And, in addition
to all these guarantees, there is a guarantee from Comcorp, on the guaranteed
accumulated values up to $60,000.
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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: info@trustco.ca
Web: http://www.trustco.ca
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