Team Creditaria Financial Group
A segregated fund is an investment product offered by life insurance companies in Canada that combines the growth potential of a mutual fund with the security of an insurance policy. Here are some advantages of investing in segregated funds.
Principal protection
Segregated funds offer a degree of principal protection, which means that a portion of your original investment is guaranteed when the policy matures, typically 10 years from the time of investment. This can be particularly attractive for investors who are risk-averse or approaching retirement.
Creditor Protection
Segregated funds can provide protection against creditors in certain situations. This is because, unlike mutual funds, segregated funds are insurance products, and as such, they are protected under insurance legislation.
Probate bypass
When you invest in a segregated fund, you have the option to name a beneficiary. This can allow your beneficiaries to bypass probate and receive the proceeds directly, which can save time and costs associated with settling an estate. 
Estate planning
Segregated funds can also be useful for estate planning. For example, they can be used to transfer wealth to heirs or to create a charitable legacy.
Diverse Investment options
Segregated funds offer a range of investment options, including equity funds, fixed-income funds, and balanced funds. Investors can choose a fund that aligns with their investment objectives and risk tolerance.
Potential for tax deferral
Segregated funds offer the potential for tax-deferred growth, which means that investors can defer paying taxes on the investment gains until the policy is redeemed or matures.
Book an appointment to see if a Segfund is the right product for your specific situation.
