Segregated Funds are pool of investments that is held and managed separately (i.e., segregated) from other similar pools or funds and the general funds of the life insurance company. The benefits of contracts issued through a segregated fund are based on the market value of the investments in the fund.
A Segregated Fund policy accumulates value, similar to mutual funds, by investing in securities such as stocks and bonds. Unlike Mutual Funds, an Individual Segregated Fund policy may offer a number of guarantees, such as Guaranteed amount at death, Guaranteed amount at a specified maturity date or Guaranteed income benefit - optional.
We have every conceivable type of segregated fund available to us, from income and dividend types to real estate and precious metals. We will work with you to determine your comfort level with fund variability, expected return and any specified Guarantees. We consider, your ability to tolerate variability in fund prices, your estimated time to start redemption and we will inform you of the type of taxable income to expect.
Death Guarantees - For a policy with this feature, the death benefit guarantee amount is 75 or 100 per cent of the premiums allocated to the policy, reduced proportionally by redemptions.
Maturity Guarantee - A maturity guarantee of 75 or 100 per cent means the policy will have a market value of at least 75 or 100 per cent of the total premiums allocated to the policy (reduced proportionately by any redemptions) on the maturity guarantee date
Maturity Guarantee Reset Option - On policies with a 100 per cent maturity guarantee, the client may choose to add automatic annual resets. This choice is made at the time of application and cannot be removed. For example, on each anniversary of the first premium until fifteen years prior to the maturity guarantee date, the value of the maturity guarantee is automatically reset if the market value is greater than the maturity guarantee amount. Reset fees continue as long as there is a maturity guarantee date.
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Application: A statement of information made by a person applying for insurance. It identifies the plan and the amount applied for, the life insured and the beneficiary, and provides other data useful in evaluating the risk.