Canada Segregated Funds
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Segregated Funds features
- Seg fund is a combo deal offering investment option with the insurance contract.
- These funds come with a maturity date.
- Allows you to take advantages of market growth without thinking about losses because of market downfall or death before maturity.
- At maturity, a guaranteed minimum payout that is 75% to 100% of the premiums paid till that time will be disbursed depending upon market conditions.
- Appreciation will be earned on the amount and will depend on the equity market performance.
- The segregated funds are contracts between policyholders and insurance companies, the units or shares allotted are in the name of the insurance company, not in the name of the policyholder.
- Individuals up to 90 years of age can invest in Seg Funds.
- In case of death, seg funds offer quick settlement process.
- You can take guidance of an investment expert and invest in multiple options at one time.
- There few seg funds that can provide guarantee of income also.
- It is possible to legally save money invested in seg fund from creditors. You can mention the clause in your contract. This can save your money in case you get bankrupt or get sued.
- You can purchase seg funds from non-registered account amount and this allows you to nominate name of your beneficiary. In case of death the amount of seg funds will directly go to your beneficiary bypassing estate. You can decide the way in which amount will be transferred it could be a lump sum amount or fixed amount paid annually.
How Segregated Funds works?
- You can buy Segregated Fund Policy from any trusted insurance broker.
- The insurance company then invest the premium in different investment vehicles.
- Invest vehicles can be stocks, debt funds, bonds, or debentures.
- All these investment vehicles depend on market conditions.
- Up and down in the market will directly impact the segregated fund's value.
- The segregated funds will be held till the maturity date.
- Seg funds provide is Reset option that reduces the risk a little further. You can lock in the amount of your profit on your invested amount is at its peak and the value of your seg fund will be set. If the market decline, it will not impact your seg fund.
- The risk level related to investment in seg funds can be evaluated using different tools.
- There are different guaranteed products offered under seg funds that reduce investment risk further.
- Estate benefits allow entrepreneurs to make an investment using their assets and without the risk of losing them.
- Seg funds offer legacy benefits i.e., you can nominate a beneficiary apart from your estate in contract, and in case of your death benefit will be given to the nominee within 10 days of death. The process requires less documentation and formalities.
Seg funds are a good buy for those who are not ready to take huge risks but are still looking for an investment that can earn them high returns. Seg funds give you a guarantee of full or a part of your investment or say principal amount even after investment. If the value of invested amount increase, then benefits will be earned at the end of the policy but if the market fall, the losses will be diluted depending upon the terms of the policy you purchased. If you die the benefits or compensation will be given to the nominated person.
We at Ez Financial are providing financial as well as insurance services from last 13 years. Our team of experts help you manage your seg funds investment and give you right advise at right time. Thinking of investing in segregated funds? Contact Us Now!