About
Segregated FundsFinAid Financial Services offers a complete range of services, providing strong financial advice based on the professional concepts at any stages in your life.
We face realities and we find opportunities through your lifetime.
How we do this? We do all of this by establishing and maintaining continuity of personal service.
What are segregated funds?
A segregated fund is a type of investment vehicle commonly used by Canadian insurance companies to manage individual, variable annuity insurance products. A segregated fund offers investment capital appreciation and life insurance benefits.
Investors can expect to pay a slightly higher total expense ratio on segregated funds due to their more complex structure. Additionally, these fund offerings typically do not have aggressive fund objectives. Therefore, returns from the funds tend to be more modest.
How Segregated Funds Work
The funds offer capital appreciation through investment up to a specified maturity date. They also offer a life insurance death benefit the owner dies before the contract matures. Most segregated funds offer a guaranteed payout of at least 75% to 100% of the premiums paid, which is an advantage over standard mutual funds where the investor has the risk of losing all of their investment. This provision usually applies to both the death benefit and the annuity payouts.
Segregated funds begin payouts to investors following the specified maturity date. Investors can choose from various options for a payout schedule offered by the product once the segregated fund matures.
01. Important
Segregated funds are considered to be insurance products sold by insurance companies and, as a result, the governing bodies and regulations responsible for overseeing segregated funds are usually the same ones that cover insurance companies.
Get In Touch
+1 416 319 1472
elena@finaidconsulting.ca