Segregated
Funds Versus Mutual Funds
Author:
Ivon T. Hughes
Segregated funds like mutual funds, are managed by investment professionals
and cover all of the different asset categories which are designed to fit
a wide variety of investment objectives. Segregated funds, which are available
only from life insurance companies, provide investors with a number of benefits
which are not available in a mutual fund.
| |
Mutual
Funds |
Segregated
Funds |
| Maturity
Guarantee |
No
|
Yes |
| Stock
Market Guarantee |
No |
Yes |
| Death
Benefit |
No |
Yes |
| Creditor
Protection |
No |
Possibily |
| Probate
Exception |
No |
Yes |
SEGREGATED
FUNDS WORK LIKE THIS:
Segregated Fund Maturity Guarantees
Segregated funds provide a Maturity Guarantee which guarantees that investors
will receive no less than 75% of their net deposit at maturity, or death,
regardless of market performance.
Segregated Fund Death Benefit:
Protects up to 100% of an investor's net deposits.
Segregated Fund Creditor Protection:
Investments have a degree of creditor protection when an irrevocable or preferred
beneficiary such as a spouse, parent or child is named in a Will but the
protection is not absolute or guaranteed.
Segregated Fund Probate Exception:
Segregated fund policies, with a named beneficiary, do not suffer the delays
and expense of probate.
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: [email protected]
Web: http://www.trustco.ca
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