Segregated Funds: Canada's Unique Insurance Option
Segregated Funds: Canada's Unique Insurance Option
Canadians across the country are inquiring more and more about savings plans and mutual fund alternatives. Many look to RRSPs and TFSAs, but have you considered the unique option of a segregated fund? Take advantage of this insurance product for Canadians, and see its big advantage over mutual funds and how it is protected from potential creditors.
What is a Segregated Fund?
Segregated funds are an insurance product, only offered to Canadians. Very similar to mutual funds, segregated funds are when a large pool of money is invest in stocks, bonds, and other securities with the goal of growing the entire value of the pool. Segregated funds are structured more like insurance contracts, in that they have the same benefits as a mutual fund (excluding maturity and death benefits), but also offer creditor protection.
Segregated Funds and Creditor Protection
If you are concerned with protecting your money against a possible case of bankruptcy, despite how unlikely this may be, you should consider the protection a segregated fund may be able to offer. Under provincial laws, the interests of insurance beneficiaries may override the claims of creditors.
If the beneficiary you have named on your policy qualifies, your segregated funds are generally protected against seizures by your creditors. If you are a business owner or a professional wanting protection against an unexpected lawsuit or bankruptcy, a segregated fund can be a big advantage.
What Is the Main Advantage of a Segregated Fund?
The main advantages of a segregated fund are the guarantees! Segregated funds guarantee 75% to 100% of your contributions (less your withdrawals) when the contract matures or on your death. Keeping your claim coverage "in-tact" after a storm How To Find The Cheapest Insurance Company Your Step By Step Guide To Getting A Great Deal On Motorcycle Insurance What's Affecting The Rates You Pay On Motorbike Insurance? The Uninsured American Should I Get Insurance For My Courier Shipment You Can Get Insurance Without License Are You protected With California Business Insurance? Is Your Insurance Company Going Out of Business? Commercial Trucking Insurance Is For Your Protection Where To Apply For Commercial Fleet Insurance? Tips To Find Cheap Commercial Insurance Quotes NRI Insurance - An Ultimate Solace When you are Overseas!