Transfer of wealth: it is possible to designate a beneficiary. Upon death, if a beneficiary has been designated other than the estate, the capital will be paid directly to the beneficiary, thus avoiding probate.
Additional protection: provides for a maturity and death benefit guarantees. The percentage of these guarantees can vary between 75% and 100% of the invested capital, depending on the guarantee option that is chosen.
Growth & flexibility: certain types of segregated funds may include reset options. To keep up with the increase in the market value of the portfolio, resetting increases the collateral values to a certain percentage of the market value.
Protection from creditors: in the event of legal action or bankruptcy, segregated fund investments may be protected from creditors, provided that a family member is named as beneficiary.
Privacy protection: a segregated fund contract with beneficiary designation is not part of the estate, and therefore, the proceeds are paid directly to beneficiaries quickly and confidentially. It is not incorporated into the will which, once probated, becomes accessible to the public in the given province.