Ayodeji Adeyemo, Gold Legacy Earner
Assurance Financial Group Inc. has recognized Ayodeji Adeyemo as a Gold Legacy Earner, deserving of
Home » Segregated Funds in Canada
Insurance companies offer investment products known as segregated funds. These investments share similarities with mutual funds, as both involve a collection of funds that clients invest in, managed by professional fund managers.
Segregated funds come with additional features not found in mutual funds, such as a death benefit and, in certain cases, a guaranteed base income. When a segregated fund policy is purchased with non-registered funds, investors can designate beneficiaries. This allows the funds to be directly paid to loved ones upon the investor’s passing, bypassing probate fees.
One advantage of segregated funds is that individual insurance contracts purchased through them are invested in underlying assets like mutual funds, leading to potential appreciation over time. While there is a risk of funds incurring losses, segregated funds include a guarantee to protect a portion of the investment. Furthermore, even if the underlying fund experiences losses, investors may still recover some or all of their principal investment with segregated funds.
In contrast to mutual funds, segregated funds provide insurance benefits and guarantees. While your contributions are assured, they do come with higher fees and are generally less flexible than mutual funds. Segregated funds are characterized by lower volatility and very low risk. It’s essential to remember that in all investments, you still hold the shares, and it’s the value that fluctuates.
In the event that the value of your fund decreases, it’s crucial not to panic and withdraw hastily. The principle of buying low and selling high applies. Always consult with your Assurance broker before making any decisions about moving your investments. Mutual funds, while offering greater potential gains, also carry the added risk of potential losses on your investment. The typical segregated fund comprises a portfolio managed by a life insurance company like Manulife, Empire Life, or Industrial Alliance.
In the industry, a crucially important practice involves an experienced and properly licensed associate guiding clients through a comprehensive financial needs analysis to ensure no details are overlooked. At Assurance, we go beyond by offering additional products that are interconnected with financial planning, ensuring our clients can benefit from a well-rounded financial plan for the future.
Our Assurance associates are equipped to assist you in planning for retirement, securing a life insurance policy from a reputable company, identifying opportunities for savings, optimizing the performance and value of your investment options, and even exploring specialty funds for investment. With our extensive resources and fund options, we can help you manage risk and secure coverage. Importantly, our services come with no fees, and you can trust our associates to help you construct a robust plan for your retirement and beyond. The choice of the right insurance company can significantly impact an investor, not only in life insurance but also in other financial services. We strongly recommend reaching out to an Assurance Group Insurance associate today!
Indeed, a segregated fund investment comes with a guarantee covering 75% to 100% of your contribution, ensuring the preservation of your hard-earned investment.
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