Guaranteed Investment Funds, (GIFs), also called segregated fund policies, are long-term investments that offer capital guarantees. When you invest in a segregated fund contract you combine the growth potential of investment funds with certain guarantees and benefits of a contract with a life insurance company. (Guarantees vary by company.)
Those benefits include:
Guarantees that can help protect your investments
Guaranteed death benefits
Potential creditor protection
The right to designate a beneficiary
Tax and estate planning advantages
An option that lets you reset your guarantee to a higher amount (for some contracts, see section 4)
Guaranteed income benefits (for GMWB contracts, see section 4)
In addition to these special contractual features, segregated fund contracts offer:
Diversification through a selection of growth, income and balanced funds
Flexibility to switch between funds offered within the same contract without fees
(for more information, see page 8)
Liquidity that allows you to promptly redeem all or part of your investment
(for more information, see page 8) Source: Key FactsaboutSegregated Funds Contracts
Note: Key Facts about Segregated Funds Contracts is aLargefile that is available for download (above) or you can view by clicking the image below.
Paul is a Certified Financial Planner (CFP) licensed by the Financial Planners Standards Council; Financial and Estate Plans are provided under that license.
The information contained in this website is intended to provide general guidelines only. The application and impact of the law can vary widely from case to case based on the specific or unique facts involved. Accordingly, the information in this article is not intended to serve as legal, accounting or tax advice. Users are encouraged to consult with their professional advisers for advice concerning specific matters before making a decision.
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J. Paul Wilson,CFP®, ChFC®
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