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The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

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Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

Benefits of segregated fund policies

Key takeaways

Guaranteed savings protection

Segregated fund policies give you growth potential while protecting you with maturity and death benefit guarantees.

These guarantees protect part or all your initial investment; when you reach your maturity guarantee date or pass away, if your investment is worth less than its original value, the insurance protection will top you up to your chosen percentage.

Naturally, it will be proportionally reduced by any withdrawals.

We offer 3 options to choose from based on your risk tolerance needs:

  • 75/75 guarantee policy – 75% maturity and death benefit guarantees
  • 75/100 guarantee policy – 75% maturity guarantee and up to 100% death benefit guarantees
  • 100/100 guarantee policy – 100% maturity and death benefit guarantees

To get the guarantee, you must keep your money in the segregated fund policy until the maturity date. If you cash out your investment before the maturity date, you’ll receive the investment’s current market value, which may be more or less than what you invested originally. Plus, you may have to pay a penalty.

The ability to lock-in investment gains

If the value of your investment increases, some segregated fund policies allow you to “reset” the guaranteed amount to this higher value. Ask your advisor for the full details including fees for these reset options. 

A seamless way to pass on your wealth

In the event of your death, the person you choose to settle your affairs could find the process stressful. Segregated fund policies offer a simple and straightforward way to pass on your money.

Unlike some investments, the death benefit from your segregated fund policy will go directly to your beneficiaries and won’t flow through your estate.

This could be faster, less expensive and less stressful than other options. If the policy has a designated beneficiary, the way you choose to leave your money, and to whom, is private.

Potential creditor protection

Your investments could be protected even if you face unexpected lawsuits or bankruptcy. With such protection, after your passing, the death benefit will go to your beneficiaries, not creditors.

Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province; it can never be guaranteed. Talk to your lawyer to find out more about the potential for creditor protection for your specific situation.

Privacy

Your designated beneficiaries (if you decide to have them) are a private matter and won’t be disclosed.

Note: In Saskatchewan, executors must disclose all known life insurance policies owned by the deceased, including segregated fund policies. They must list the insurance company, policy number, designated beneficiaries and the value at the date of death.

What’s next?

You’ll find the detailed descriptions of the segregated fund policy in the information folder provided by your financial advisor. Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

The contents of this article relate to individual segregated fund policies, which are different from group segregated fund policies. Group segregated funds do not typically offer the same benefits as individual segregated fund policies. For more information on group segregated funds, please speak to your group plan provider.

This should not be construed as legal, tax or accounting advice. This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique. We have endeavoured to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate. There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise. We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document. Please consult your own legal and tax advisor.

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