A segregated fund is a mutual fund offered by a life insurance company and is generally offers the same level of diversification options found within mutual fund offerings. Segregated funds are an insurance contract that provides you with investment management plus protection.
The assets of the fund are segregated from the other assets of the company and invest in equities, bonds, real estate, mortgages and money market instruments like a mutual fund. Unlike mutual funds that are not protected by insurance, a segregated fund maintains both maturity and death benefit guarantees. For a segregated fund, most guarantees range from 75 to 100 percent of your original investment. In other words, the contract guarantees to pay on maturity at least 75 percent of the value of the money put into it, less withdrawals. Additionally, segregated funds may offer creditor protection and probate shielding through beneficiary designation.
At Boggs Financial Inc. we can help you decide which Segregated Fund contract will best meet your needs.
Let’s have a conversation to see if segregated funds are right for you! Contact us at 519-848-2939.