Segregated funds are insurance products offered by life insurance companies and are similar to mutual funds, but with important added features. If the market value of these funds goes down, at least 75% of your principal is guaranteed. However, some funds—including funds that we offer guarantee your full principal.
These funds also offer creditor protection, which is a key benefit to all business owners. If someone launched a lawsuit against your company, the money you have in segregated funds would be exempt from litigation (certain conditions apply).
Segregated funds are eligible for registered plans and can flow capital gains, dividends, and interest income to investors. They may also flow through capital losses.
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