10 questions about Segregated funds

10 questions about Segregated funds

Posted on by Matthew Laker

What is a segregated fund?

A segregated fund is an insurance product exclusively distributed by insurance companies. It is similar to a mutual fund but provides, among other features, protection against market downturns, by guaranteeing 75%

to 100% of the amounts invested at maturity or death. This guarantee, which is not available for mutual funds, represents a major advantage for some clients as it may limit the risks of loss

Who are segregated funds for?

Segregated funds are for people of all ages. They can be an ideal option for:

— People approaching retirement who want to protect their retirement savings

— People who want to simplify the transfer of their estate to their heirs

— Self-employed workers or business owners who want protection in case of bankruptcy or lawsuits

— Anyone looking for financial peace of mind

Click here to read the answers to 8 more questions about Segregated Funds.

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(*information comes from Industrial Alliance material)

4 Reasons to use Segregated Funds

Posted on by Matthew Laker

4 Reasons to use Segregated Funds

Segregated funds can be an essential part of a person’s investment and financial planning. Before finding an investment path, you first should have a financial plan that understands your needs, wants, where you are at and where you like to go.

Here are four reasons you may want to use segregated funds.

1. Capital protection

On maturity or death, protection allows beneficiaries to recover 75% to 100% of the amounts invested if the market value of the funds is lower.

2. Resets

Segregated funds that are known as 75/100 or 100/100 offer the possibility of locking in gains every year in order to protect investment funds during market fluctuations.

3. Creditor Protection

This can be an advantage for small business owners and professionals who want to limit their risk of loss in case of bankruptcy or lawsuits. There are certain conditions that apply.

4. Estate Value

Unlike mutual funds, the designation of a beneficiary in your segregated fund contract provides two advantages at death. One is prompt payment to beneficiaries with now waiting for the estate to settle. Two, since the money is paid at death is not part of the estate, therefore probate feeds are excluded, and more goes to heirs.

What questions do you have?

Estate planning – What is a Segregated Fund?

Estate planning – What is a Segregated Fund?

Posted on by Matthew Laker

Why would you even look at a Segregated Fund?


Segregated Funds are one good tool to help in Estate planning. Especially if you have money set aside that you want to leave to a certain beneficiary. Some individuals may like the security that comes with the death benefit.

What is a Segregated Fund?

Segregated funds are offered by insurance companies and have some uniqueness and characteristics that do not apply to traditional mutual funds. They combine the growth potential of investments with insurance protection.


Many provide a guarantee to protect the principal of the money you invest, Even if the fund loses money, you will get back a portion or all of your principal investment. There are also resets along the way, the reset is a guarantee on the current value if you should die. However, you have to hold your investment for a certain length of time to benefit from the guarantee.

Here are seven uniqueness of Segregated Funds.

  1. Guarantee in the event of death and upon maturity.
  2. Potential to lock in Growth – This is a reset option on the growth of the investment, it becomes the guarantee upon death.
  3. Investments are exempt from seizure by creditors. -This can be helpful for those with a business wanting to protect assets.
  4. quick access to investments in the event of death. – There is no need to go through probate, and your beneficiaries can receive the money sooner.
  5. Increased level of confidentiality. – These can be important for those who do not want people to know how much their assets are. As it is not part of the public record.
  6. Avoiding probate. – Probate can eat up a percentage of the estate, that is not the case with segregated funds.
  7. Assuris protection (https://assuris.ca/how-am-i-protected/assuris-protection/wealth-management/individual/guarantees-on-segregated-funds/) – In the event that the company fails, this organization provides protection for Canadian policyholders, protecting their guarantee.

Are Segregated Funds for you?

Perhaps, perhaps not. It depends on what are your goals and needs.

This is why you need to do a Financial analysis that looks at your needs, current situation, goals and what are your options. Each person needs a financial plan unique to them.


I can help you with that. Let’s start with a free 60 min meeting and walk you through our complimentary financial analysis. This will confirm where you are at and where you want to go and what your best options are and create a plan to get there.


Fill out the form now, why wait, it will cost you nothing and give you the assurance of what your next steps need to be.