What are segregated funds?

Segregated funds definition: Canadian life insurance companies offer segregated funds to long term investors who seek the growth potential and liquidity of a mutual fund, combined with the security of a life insurance contract. Like mutual funds, segregated funds are professionally managed pools of capital in securities such as bonds, debentures, stocks and market indexes. We broker hundreds of segregated funds offered by 9 different life insurance companies. The market value of segregated funds will fluctuate, depending mostly on the asset mix of the pool and on general economic conditions.

Segregated fund contracts can be registered (held inside an RRSP, RRIF, RESP, TFSA) or non-registered (cash).

  • Many segregated fund contracts offer Guaranteed Minimum Withdrawal Benefit (GMWB) income options.
  • Investors who are saving for retirement and want "peace of mind" (75% to 100% market value and death benefit guarantees), will find segregated funds a better option than mutual funds.
  • Market value and death benefit reset features.
  • All segregated fund contracts can be set up to provide creditor protection and to by-pass probate fees.
  • The creditor protection feature makes them attractive to small business owners and self-employed individuals.
  • With non-registered segregated funds you can name a beneficiary or beneficiaries, which makes them useful for estate planning.

If you would like more information on segregated funds or would like a free, confidential, second opinion on your current segregated fund portfolio please call 1-877-830-7000 or contact us.


Segregated funds image of man walking his piggy bank

For a free quote and consultation on segregated funds, please call 1-877-830-7000 or contact us.