Segregated Funds

A segregated fund is an investment that includes a very unique insurance component. The term "segregated" refers to the fact that your investment is separated from the general assets of the insurance company. Segregated funds are similar to mutual funds in many ways in that they offer professional money management and diversification. However, they also offer a partial guarantee of capital on maturity; potential creditor protection and proceeds from the contract are paid directly to the beneficiary thus avoiding probate fees. These are especially beneficial for those that are self employed or particularly focused on ensuring that their capital has some form of a guaranteed.