What is a Segregated Fund?
Segregated funds are only offered by life insurance companies and are officially classified as insurance contracts regulated by life insurance legislation. What sets segregated funds apart from other types of investments are the investment protections and estate planning benefits. They contain professionally managed, diversified portfolios of investments and can offer quick access to your assets if needed.
Estate Planning Advantages
Segregated funds offer a great opportunity to plan ahead – ensuring the greatest value from your investments is passed on to your loved ones.
With the ability to name a beneficiary, segregated funds offer the opportunity for the investment to bypass the estate.
There are four reasons why you might consider Segregated Funds for estate planning:
- Agility: Settling an estate can be a long process – often taking months or years if the will is being contested. With a named beneficiary other than the estate, the death benefit proceeds are sent in a quick and timely manner.
- Privacy: Segregated fund proceeds are not a matter of public record – keeping the information private and confidential.
- Bypass Fees: Legal fees, estate and probate administration fees can significantly reduce the value of the estate. The proceeds of the segregated fund may bypass probate and associated fees.
- Management: Segregated funds put the client in control of how they want their estate to be managed. With an annuity settlement option, it is possible to replace a lump sum death benefit with smaller scheduled payments to the beneficiary for a specific period through an annuity.
FORTRESS® Funds & FORTRESS® 2 Funds
Please note: The FORTRESS® Funds and FORTRESS® 2 Funds product lines were closed to new policies on April 1, 2013. While FORTRESS® products are no longer available for sale as a new policy (after March 31, 2013), current FORTRESS® Fund policyholders (prior to April 1, 2013) can continue to make contributions and transfers into existing policies. Existing FORTRESS® policyholders can track fund values and performance here.
FORTRESS® Funds (Segregated Funds) provide an opportunity to participate in the potential of the markets with a high percentage of principal protection. We offer a group of high-quality investment funds for long-term growth potential. From bond and equity funds, to international funds and money market funds, FORTRESS Funds provide diversity, backed up by valuable guarantees.