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.
Segregated funds give you access to several unique advantages:
— Capital protection at maturity or death
— Investment growth protected through resets
— Possibility of no probate fees
— Quick settlement in the event of death thanks to beneficiary designation
— Possibility of creditor protection
— Quick and easy tax filing
— Possibility of guaranteed income for life
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 a simple transfer of their estate to their heirs
— Self-employed workers or business owners who want protection in case of bankruptcy or lawsuits
— investors looking for protection in a volatile market.
— Anyone looking for financial peace of mind.
Yes! As with mutual funds, the growth potential depends on the funds you invest in, based on your investor profile. For example iA's 75/75 and 75/100 series offer the possibility of investing in all iA funds, with no limitations. This offer, exclusive to iA Financial Group, gives our clients access to a wider range of investment options as well as a higher growth potential, while also benefiting from a better guarantee. In any case, to optimize your growth potential, the most important things you can do are: — Get good advice and invest based on your investor profile — Invest in well-managed funds.
Yes. The advantage of designating a beneficiary allows you to avoid various fees related to estate settlement when transferring money from a segregated fund contract, including probate, professional and legal fees. Depending on your province of residence, these fees can represent a significant amount of money and make a big difference.
In contrast to the normal estate settlement process, which can take months or years, estate settlement related to segregated funds can be completed with no fees and generally, in less than two weeks. The capital paid can then be used to cover financial commitments for the deceased, such as taxes and debts, if necessary.
As brokers we can find the best rates available for your GIC needs. For example iA's guaranteed interest funds (GIFs) and high interest savings account (HISA) offer you security in the face of volatility. They are among the first products to benefit from rising interest rates and offer guaranteed returns.
Both the GIFs and HISAs also come with many interesting benefits:
- A higher, risk-free return compared to chequing accounts
- Your savings and the interest accumulated are guaranteed and cannot be affected by stock market fluctuations
- Redeemable at any time (under certain conditions for GIFs)
- Possible creditor protection and quick and easy payment at death