Principal guarantee. Segregated funds operate under a fixed contract term, with a principal guarantee that protects your investments at maturity and death.
Maturity guarantee: When a deposit matures and is redeemed (a minimum of 10 years from the date of deposit), you will receive a top-up payment, less any withdrawals and fees, if the market value is less than the guaranteed amount.
Death benefit guarantee: When a segregated fund annuitant dies and the market value of the investment has declined, the named beneficiary will receive the guaranteed amount, less any withdrawals and fees.
Estate preservation. Many people donít realize that probate is a public process and can cost a significant amount of money. Segregated fund assets can be paid directly to your named beneficiary, thus avoiding the cost and complications of probate. By avoiding probate, you keep your financial affairs private and more of your proceeds pass directly to your named beneficiaries.
Potential creditor protection. Are you concerned with protecting your money in case of a possible future bankruptcy, however unlikely this may be? As an insurance contract, assets held in your Roger Menard Insurance Guaranteed Investment Funds may be protected from creditors in the event of a bankruptcy. Under provincial laws, the interests of insurance beneficiaries may override the claims of creditors. You should consult your advisor about your individual circumstances.
Resets. When the current value of your investment is greater than your original investment, segregated funds allow you to benefit from market gains by resetting your guaranteed values. Resetting your guaranteed values typically extends your maturity date. For example, if you reset two years into a standard 10-year segregated fund contract, your maturity date would be moved forward by two years.