Segregated Funds combine the growth potential of investments with the protection features of insurance. They are designed for investors who want market participation while adding an extra layer of security for themselves and their families.
At Sun Plus Financial Advisor, Segregated Funds are used strategically—not as a default, but where protection, planning, and peace of mind truly matter.
What Are Segregated Funds?
Segregated Funds are insurance-based investment products that work similarly to mutual funds, but with built-in guarantees and estate benefits that traditional investments do not offer.
They are issued by life insurance companies and can play an important role in retirement, estate, and business planning.
Key Benefits of Segregated Funds
Capital Protection
- Guaranteed maturity protection (typically 75% or 100%)
- Guaranteed death benefit for beneficiaries
Estate & Legacy Advantages
- Bypass probate in most cases
- Faster transfer of assets to beneficiaries
- Potential reduction of estate settlement costs
Creditor Protection
- May offer protection from creditors when a qualified beneficiary is named
- Particularly valuable for business owners and professionals
Market Participation with Safeguards
- Access to diversified portfolios
- Downside protection during market volatility
Types of Segregated Fund Guarantees
Death Benefit Guarantee
Ensures a guaranteed minimum amount is paid directly to named beneficiaries upon death.
Maturity Guarantee
Protects a portion of the original investment if held to maturity (usually 10–15 years).
Reset Options
Lock in market gains periodically, increasing future guarantees.
Who Are Segregated Funds Best Suited For?
- Pre-retirees and retirees seeking income stability
- Investors concerned about market volatility
- Business owners needing creditor protection
- Individuals focused on estate planning and wealth transfer
- Clients who value guarantees alongside growth
Segregated Funds vs Mutual Funds
While both offer market exposure, Segregated Funds provide:
- Insurance-based guarantees
- Estate and creditor protection
- Predictability in uncertain markets
They may also carry higher costs, which is why proper planning and suitability assessment are essential.
How Sun Plus Financial Advisor Uses Segregated Funds
We integrate Segregated Funds only when they align with your financial objectives, such as:
- Protecting retirement income
- Preserving wealth for heirs
- Managing risk during volatile markets
- Supporting business and succession planning
Each recommendation is based on your timeline, risk tolerance, and overall financial plan.
Our Advisory Process
- Risk & suitability assessment
- Portfolio alignment with guarantees
- Ongoing reviews and resets when appropriate
- Integration with tax, retirement, and estate planning
Segregated Funds are not about avoiding risk entirely—they are about managing uncertainty intelligently.
At Sun Plus Financial Advisor, we help you decide when protection adds real value and when simplicity is the better choice.
