Segregated funds: Think insurance for your investments

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We can show you why this investment is made for uncertain times.

From making sense of the daily headlines to managing ongoing life demands, it seems we’ve all got plenty of things to worry about. And, if you’re like most Canadians, your financial future is one of those things.

Segregated funds, a unique investing option only available through insurance providers like The Co-operators, are designed to help you worry less. They deliver all the value of a straightforward mutual fund. But, unlike mutual funds, the amount of money that you invest is protected.

If you’re looking to grow and protect your money, here’s why you should consider segregated funds as part of your financial picture.

Protect your principal investment

You can invest in your future, while limiting the losses that may result from market downturns. You can even choose the guarantee level that is right for your financial situation and that brings the most comfort to you.

With segregated funds, 75% or 100% of the money you invest* can be guaranteed when your investment matures (the “maturity benefit guarantee”) or when you die (the “death benefit guarantee”). And that holds true, no matter how much the markets underperform.

Grow your money

Protecting a percentage of your investment is only half of the equation. Segregated funds also bring an opportunity to build your wealth.

Just like mutual funds, they are designed and managed by professional fund managers who are working to capitalize on market growth. If you choose the 100% death and maturity guarantee level, the automatic reset feature will also allow you to lock in market gains, by guaranteeing your investment at the new, higher value.

Increase the value of your estate

Whenever and however you invest, it’s important to consider what happens to your money, if the unexpected happens. You want to ensure that it can be passed to family members or a desired charity in the most timely, straightforward and cost-effective way.

By naming a beneficiary, your funds will be treated as a life insurance claim, meaning that:

  • Your beneficiary will receive either the guaranteed amount or the market value of your investment – whichever is greater.
  • Less of your investment will go to the government – and more will go to your beneficiaries – as your funds are not part of the estate-settlement process.
  • The privacy of your estate will be protected, as funds will bypass the often-lengthy probate period (i.e., the process of authenticating a will) and go directly to beneficiaries.

Gain protection for your business

If you’re a business owner or a self-employed professional, segregated funds can provide an added layer of security – helping you separate your personal savings from your professional liabilities.

Naming a specific type of beneficiary, like a spouse or a child, for example, gives your investment potential protection from creditors in the case of bankruptcy or litigation. So, when it comes to accessing the money, your family – prioritized over any claims made by creditors – gets the money quickly and securely.

Ready to include segregated funds in your portfolio?

Whether it benefits your retirement or benefits your loved ones, and whether you’re new to investing or you’re a seasoned pro, it never hurts to have an “insurance policy” for your money.

Contact a financial representative** to discuss your investment needs and to find the guarantee that’s right for you.

*Maturity and death benefit guarantees are not available upon surrender of the segregated fund policy and are proportionally reduced by any withdrawals from or investment transfer out of the segregated fund. Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the policyholder and may increase or decrease in value. Contact your financial representative** for details.

**In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.

Segregated funds are administered by Co-operators Life Insurance Company.

This article is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this article constitutes investment, legal, tax or other advice.

Co-operators Life Insurance Company is committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please refer to our privacy policy for more information.

The Co-operators® is a registered trademark of The Co-operators Group Limited.