Smart investing sometimes means looking at options beyond the usual mutual fund or ETF conversation — segregated funds are one most people have never heard of.
A segregated fund is an investment product offered through an insurance company, and it comes with features regular investments don’t have:
→ Maturity and death benefit guarantees — typically 75-100% of your original investment is guaranteed back at maturity or death, even if the market drops
→ Potential creditor protection — in certain situations, segregated funds may be protected from creditors, which regular investment accounts generally aren’t (rules vary — this depends on your specific situation)
→ Bypasses probate — because they’re insurance contracts with a named beneficiary, proceeds can go directly to your beneficiary, potentially faster and more privately than assets going through an estate
The trade-off: segregated funds typically have higher fees than comparable mutual funds or ETFs, because you’re paying for that insurance guarantee layered on top of the investment.
Who tends to consider segregated funds: people who want market exposure but also want downside protection, business owners concerned about creditor exposure, or anyone who values a simpler, more direct way to pass assets to beneficiaries.
This isn’t a fit for everyone — it depends on your goals, timeline, and how much you value the guarantee versus paying lower fees elsewhere.
#mortgageinsurance #segregatedfunds #loaninsurance #jobsecurity