Like a mutual fund, a segregated fund pools money from thousands of investors which professional fund managers invest in a variety of securities. Segregated fund policies are only available through insurance companies and take the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company’s general operating funds. Advantages for some investors include:

• Death benefit and maturity guarantees:- Segregated fund policies protect part or all of your capital investment. London Life offers two types of capital guarantees—death and maturity guarantees.

• Estate bypass:-  When you designate a beneficiary other than your estate, the value of your segregated fund policies flow directly to the beneficiary, generally bypassing the estate and potential probate fees.

• Creditor protection potential :- Laws may protect a segregated fund policy in the event of bankruptcy or other action by creditors. It’s important to note that potential creditor protection depends on court decisions, which can be subject to change and can vary for each province. This protection cannot be guaranteed.

Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.