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Grow, protect, transfer


Discover the unique opportunities of segregated fund contracts.

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Grow, protect, transfer Discover the unique opportunities of segregated fund contracts.   A segregated fund contract is: •	An all-in-one investment, insurance product and estate planning tool  •	Only available from an insurance company The contract players: •	Contract owner – the person who owns the contract •	Successor owner – the replacement owner of the contract after the original owner dies •	Annuitant  – the person on whose life the maturity and death benefits are paid  •	Successor annuitant – the replacement person on whose life the maturity and death benefits are paid •	Beneficiary – the person who will receive the funds when the annuitant, and successor annuitant if named, dies (can be anyone: a family member, friend or charity) Investment component: •	Opportunity to participate in the markets  •	Pooled investments for economies of scale •	Range of funds across all asset classes to choose from to help grow and diversify a portfolio •	Option to choose from a non-registered account or a tax-advantaged registered plan  Insurance component: •	Estate planning and wealth transfer features  •	Potential creditor protection  •	Asset protection through death benefit and maturity guarantees Estate planning advantages: •	Bypasses accounting, legal, administrative and probate fees  •	Potentially protects from estate creditors and avoids court challenges to a will •	Preserves privacy by bypassing probate  •	Transfers wealth quickly to beneficiaries •	Controls payments to beneficiaries – annuity settlement option lets you decide whether wealth is paid as a lump sum or gradually over time Guarantees: •	Death benefit guarantee – percentage of deposits, reduced by any withdrawals, that the beneficiary is guaranteed to receive when the last annuitant dies •	Maturity benefit guarantee – percentage of deposits, reduced by any withdrawals, that the contract owner is guaranteed to receive when the contract matures •	Maturity date – occurs after a minimum number of years has passed or at a contract set date (for example, age 100 of the annuitant)

 

[1] In Quebec this person is called the life insured (”insured”) and the word ”annuitant” instead refers to the person who will receive any annuity payments while the insured is alive.

[2] The probate process and fees do not apply in Quebec. There is a verification process for non-notarial wills but not for notarial wills.

[3] In Saskatchewan, jointly held property and insurance policies with a named beneficiary are included on the application for probate but do not flow through the estate and are not subject to probate fees.



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