Individual Variable Insurance Contracts (IVICS)

Segregated Funds

SEGREGATED FUND CONTRACTS

Investments based on segregated funds are only available via variable life insurance and annuity policies issued by life insurance companies. These policies are typically referred to as “segregated fund policies”.

A segregated fund contract is an insurance contract that provides unique benefits, including maturity and death benefit guarantees and in some cases guaranteed income.

Like mutual funds, there is a spectrum of funds to choose from, and the returns on the investments within a segregated fund contract rise and full with the markets.

However, with these products you will receive at least 75% and with some products 100% of your principal investment back at maturity (known as the maturity guarantee), or at death (known as the death benefit guarantee), or through a series of income payments.

There may be the opportunity to lock in investment gains periodically with reset options to increase the guaranteed amount.

Potential creditor protection:

Because proceeds of a segregated fund policy can be paid directly to a named beneficiary in the event of the death of the annuitant, they bypass the deceased’s estate and, consequently, are not exposed to probate fees, executor’s and lawyer’s fees and delays in the administration of the policy owner’s estate.

Information and product details – including how guarantees can be reduced for withdrawals and other features and benefits of a segregated fund contract can be found in the Information Folder and Contract document.

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