Segregated Funds

Segregated funds: A segregated fund is a life insurance product similar to a mutual fund. As with a mutual fund, money is pooled and invested on your behalf in such things as stocks, bonds and money market. However, segregated funds also offer guarantees on the money you deposit. They offer a minimum guarantee of 75% of your deposits ( proportionally reduced by withdrawals) after 10 years or on death. Because they are contained within an insurance product, they may qualify for creditor protection.