Segregated Funds-The Benefit of Insuring Your Capital

Segregated funds are like mutual funds with an insurance wrapping. The insurance pays for the guarantees that mutual funds do not have. These benefits guarantee up to 100% of your principal at death and maturity.

Segregated funds, similar to mutual funds, pool your capital with the funds of many thousands of investors. You buy units of the fund that fluctuate based on the total value of all the securities.

Guaranteed Value
When you leave your money invested for the term of the contract, you are guaranteed to get back up to 100% of your original invested capital, less any withdrawals. This is of particular value when an investor cannot afford to lose any of the original capital invested. Your segregated fund investment guarantees that you will get back the portion agreed in the contract. When the contract matures, you will get back the greater of the guaranteed minimum amount or the market value if greater.

Segregated funds allow for peace of mind in volatile market conditions, especially for nervous investors and senior citizens. An investor need only pay a small percentage extra to get the security of the insured capital offered in the segregated fund. This means less worry, as you will know assuredly that the minimum amount of money you will receive when the contract or matures. This is particularly good for those:

1. who intend to pass the money on to the next generation
2. where it is not needed for income or
3. who need it for an emergency during any period of market devaluation.