Segregated funds are similar, often identical, to mutual funds in that there is a pool of investments held by unitholders, and professional managers invest the funds according to stated objectives – in fact, the better known mutual funds often offer segregated versions of the same investment products. Like mutual funds, the market value of segregated fund units fluctuate with the fund portfolio. However, segregated fund units often come with a guaranteed minimum value as high as 75% or 100% of the original purchase, as a protection for their investors.
But the key difference is that segregated fund units are contracted as a life insurance benefit passing immediately to a named beneficiary, separately from the estate, probate and taxes. Because of this feature, segregated funds can only be purchased through life insurance companies.
Segregated funds can also offer creditor protection, in many cases sheltering a beneficiary from creditors of the estate. Business owners and professionals find this feature particularly interesting.
These and other features can vary from fund to fund, but your Orr representative knows the segregated fund market well and can give specific guidance to suit your goals.
GICs provide a guaranteed rate of interest with high security. Among its numerous benefits are:
GICs issued by insurance companies offer unique advantages over those of other financial institutions, specifically creditor protection under certain circumstances where a preferred (family class) beneficiary has been named. Nominated beneficiaries in GIC contracts will receive death proceeds directly eliminating delays and costs due to probate.
These are contracts arranged by insurers that guarantee a fixed income for the life of the purchaser, or annuitant. The stability of this product has increased its popularity after the market volatility of the past decade and the low interest rate environment that have decreased the investment income streams of many retirees.
A savings account earns interest on the money that is within the account. The interest rate is calculated from the company and it changes as interest rates increase or decrease. It’s simple, liquid and insured up to $100,000.
Or you can use the email form and one of our representatives will reply as soon as possible.