05/22/2015
As investors become more concerned about managing risk in their portfolios and protecting their principal investment in the markets.
Segregated Funds, enjoy Guarantees and unique Estate Planning properties vital to the investor, given the great amount of post war "Boomers: retiring all over the world.
Pension Plans and private investments will have to be converted into cash to fund all the income needs of these "Boomers".
This may lead to a massive liquidation of securities all over the world.
Segregated Funds can give you the growth potential of investment funds with the security of the Life Insurance deposit Guarantees.
What is a Segregated Fund?
A Segregated Fund is an investment option sold exclusively by the Life Insurance industry. The funds are available with an
Insurance policy feature. Investors benefit from valuable maturity and Death Benefit Guarantees.
Maturity Benefit Guarantee
As part of the mandate of the Life Insurance Industry, Segregated Funds have a maturity Benefit Guaranty Option with some contracts offering a 100% refund of your principal investment.
When the policy matures, you are guaranteed to receive the greater of 100% of your net deposits**, or the market value of your Investments.
This means no matter how markets perform, your investments have downside protection with resets as the market values increase.
Death Benefit Guarantee
Today more people are recognizing the valuable Life Insurance feature: The Death Benefit Guarantee. Although these are not issued based on your health as an insurance policy is, the Segregated Funds have the ability to transfer 100% of the investor net deposits plus investment increases upon the Investor's death if there is a named Beneficiary.
When you need the Money
If the Segregated Fund Investment has increased in a value higher than your net deposits, you can reset your maturity and Death Benefit Guarantees to the higher value.
Ability to Bypass Probate in Canada
With an insurance policy, the death benefit is paid directly to the named Beneficiary rather than to the Estate. This means that the value of your Segregated Fund Investments may bypass Probate,(a costly and lengthy process), allowing your named Beneficiary to receive your proceeds faster.
Potential Creditor Protection in Canada
As an investment with Life Insurance Beneficiary features, Segregated Funds may be protected from seizure by Creditors if you name your Spouse, Child, Parent or Grandchild as the beneficiary of your policy. This feature is especially important for Business Owners and Professionals.
Creditor protection varies by Province. Note that there are certain circumstances where protection from Creditors will not exist. It’s always best to obtain independent legal advice if Creditor Protection is a concern.
Reduce the Downside Risk of Market Sell Offs
• Option to reset Maturity and Death Benefit Guarantees as higher market values persist.
• Freedom from Estate and Probate fees if you name a Beneficiary other than your Estate
• Deposit protection (within prescribed limits) through Assuris
• Potential protection from Creditors
Contact me for more information:
Jake Wink 416.828.1564
[email protected]
