Segregated Funds - Complete Information

In order to reap the benefits of good returns, the insured member should stay invested for a fixed term as pre-agreed with the company offering this type of fund. Some companies require you to pay an additional sum to get the insurance benefit.

Benefits of Segregated Funds

Guaranteed Principal

If you continue to pay the premiums (installments) on a regular basis over a definite term, you can look forward to partial/full returns of the monies invested, depending on the product. Some funds let you to reset the amount guaranteed at frequent intervals so that the returns upon maturity is higher.

Death Benefit

Another prominent advantage of putting your monies in Segregated Funds is the death benefit. For those of you looking forward for the most visible benefit offered by a traditional life insurance, it offers protection for your loved ones.

Higher Returns

Unlike a traditional insurance plan where returns upon maturity is fixed and limited, Segregated Funds are linked to market performance and therefore, one can look forward to pleasing returns over a definite period of time.

A Segregated Fund has its own set of disadvantages, the most prominent being premature withdrawals may mean you will get the current value with a penalty.