SEGREGATED
FUNDS VERSUS MUTUAL FUNDS
Segregated funds like mutual funds, are managed by investment professionals and
cover all of the different asset categories which are designed to fit a wide
variety of investment objectives. Segregated funds, which are available only
from life insurance companies, provide investors with a number of benefits which
are not available in a mutual fund.
| |
Mutual
Funds |
Segregated
Funds |
| Maturity
Guarantee |
No |
Yes |
| Stock
Market Guarantee |
No |
Yes |
| Death
Benefit |
No |
Yes |
| Creditor
Protection |
No |
Possibily |
| Probate
Exception |
No |
Yes |
SEGREGATED
FUNDS WORK LIKE THIS:
Segregated Fund Maturity Guarantees
Segregated funds provide a Maturity Guarantee which guarantees that investors
will receive no less than 75% of their net deposit at maturity, or death, regardless
of market performance.
Segregated Fund Death Benefit:
Protects up to 100% of an investor's net deposits.
Segregated Fund Creditor Protection:
Investments have a degree of creditor protection when an irrevocable or preferred
beneficiary such as a spouse, parent or child is named in a Will but the protection
is not absolute or guaranteed.
Segregated Fund Probate Exception:
Segregated fund policies, with a named beneficiary, do not suffer the delays
and expense of probate.
