Benefits of segregated funds
One of the best kept investment secrets are segregated funds from life insurance companies. Just like mutual funds, segregated funds are invested in equities, bonds, and other investments. However, they differ dramatically in that segregated funds guarantee all or most of you principal investment upon maturity or death, while mutual funds sold by financial institutions generally have no guarantees at all. Because the funds are offered by a life insurance company, they also come with some unique benefits, including a principal guarantee. We invite you to shop and compare. Guarantee on principal
Investment returns are important but so is financial security. After all, nobody wants to lose money. With segregated funds you can avoid the costly losses associated with market swings because your principal has a guarantee. RRSP/RRIF eligible
All interest accounts, funds, and portfolios of funds can be purchased as either registered or non-registered investments, for example, Registered Retirement Savings Plan (RRSPs) or Registered Retirement Income Fund (RRIF). Death benefit
In case of death on or before your 75th birthday, your principal investment in both registered and non-registered segregated funds is 100% guaranteed. In case of death after your 75th birthday, your principal investment is 75% guaranteed. For example, it you die before you turn 75 and it’s only been one year since you made your first and only investment of $100,000, that entire amount is guaranteed to your beneficiary at that time, even though the maturity date is still 9 years away. In case of death, for Versatile Portfolios Registered Education Savings Plan (RESP), your principal investment is always guaranteed(less any withdrawals) for 75% in segregated funds. Creditor protection
When you name a family member as a beneficiary, you have potential creditor protection in the case of unforeseen bankruptcy. This makes segregated funds especially attractive to the small business owner. Bypass probate
After someone dies, their estate may be subject to ‘probate’ (legal validation of the will). In some provinces, probate or estate administration fees can be as much as 1.5% of the estate. During probate, assets are frozen and the will is public property for all to view. When you name a beneficiary, you ‘bypass probate’ and save up to 1.5% of assets. It also relieves the family of the potential burden of a lengthy and complicated process involving lawyers and government red tape just to access funds. Lifetime income
You have the option of converting your accumulated funds into a lifetime annuity which would guarantee you an income for as long as you live. Fee options
You can choose a back-end load (deferred sales charge) so that all of your money is invested and working for you right from day one. The charge only applies if you withdraw funds within 6 years of the contribution date. The back-end load options permits annual withdrawals of up to 20% of your Registered Retirement Income Fund (RRIF) and Systematic Withdrawal Plan (SWP) account, and 10% of your Registered Retirement Savings Plans (RRSPs) and non-registered savings at absolutely no charge. If you’re a short term investor looking for enhanced investment flexibility, our no-load option with its slightly higher annual management fee is the ideal solution. Liquidity
You can sell your segregated funds at any time; deferred sales charges and market value adjustments may apply. Affordability
You can open an investment savings account with as little as $25 a month. Dollar cost averaging
We encourage ‘dollar cost averaging’ (the contribution of a regular amount on a regular basis) as it smoothes out the peaks and valleys of investment purchases. In other words, you buy more units when the prices are low and less when they are high. This removes some of the volatility of buying units with a lump sum when the markets could be high or low. A pre-authorized contribution plan makes it simple. Fund performance
Individual segregated funds from AIM Trimark, Fidelity, and The Co‑operators have excellent performance histories. All have delivered above-average returns relative to their respective peer groups. Flexibility
You’re not locked into any one fund or portfolio. If you’re life circumstances change, you can switch between funds and portfolios up to 4 times a year at no additional cost. You also have the option of creating your own portfolio of funds. Professional management
Our professional fund managers are committed to achieving above-average returns over the long term with minimal risk. They actively manage the funds considering such factors as global and domestic economic trends, industry trends, and the management and financial performance of both companies and governments. Measure your progress
All investments are tracked and statements are issued quarterly. For rates of return and more information, you can bookmark cooperators.ca. Peace of mind
The funds have been designed to accommodate the full spectrum of investment personalities. When you fill out your risk profile questionnaire , your fund selection becomes clear, and your comfort level is maintained. Made in Canada
The Co-operators is the leading Canadian-owned multi-product insurance company with over 600 locations across the country. Proud of its reputation as a caring, community-minded company, an investment with The Co‑operators is an investment in Canada and your community. Reputation for excellence
At The Co-operators, you get personal, local one-on-one service – no more standing in line at the bank or waiting on the phone – with offices from coast-to-coast, it’s easy to find an agent near you. Consumer Protection Plan
Co-operators Life Insurance Company is a member of Assuris, a not-for-profit organization that protects Canadian policyholders in the event of life insurance company failure. For more information about protected products, please ask for an Assuris brochure or visit the Assuris website. Back to Top | 