Grow Your Wealth with Peace of Mind
Looking for a way to grow your money without giving up peace of mind? Segregated Funds offer market growth potential and capital guarantees.
Segregated Funds (also called “Seg Funds“) are investment products offered through insurance companies. They’re similar to mutual funds, but with added benefits that come from being insurance-based.
Here’s what they offer:
-
Growth potential through professionally managed portfolios
-
Maturity guarantees (75–100% of the investment)
-
Death benefit guarantees (75–100% of the investment)
-
Reset options to lock in market gains
-
Potential creditor protection
-
Ability to name a beneficiary and bypass probate
Why Canadians Choose Segregated Funds
-
Principal protection: Safeguard up to 100% of your capital at maturity or death
-
Estate planning benefits: Avoid probate delays and fees — pass assets directly to beneficiaries
-
Creditor protection: Helps shield assets from claims in the event of bankruptcy or lawsuits (if structured properly)
-
Tax-efficient options: Potential for lower tax on non-registered accounts through capital gains and return of capital
-
Comfort in volatility: Ideal for conservative investors who want market growth with a safety net
Are Segregated Funds Right for You?
Segregated Funds may be a great fit if you:
-
Want market-based growth without risking your full principal
-
Are nearing retirement and looking to preserve capital
-
Own a business and want potential creditor protection
-
Want to simplify estate transfer and avoid probate
-
Prefer a “hands-off” approach with professional fund managers
-
Are a conservative or moderate investor who values guarantees
Ready to Get Started?
Our Services
Free Consultation
Get your answers
Both offer access to diversified investment portfolios, but Seg Funds provide insurance-based guarantees, estate planning advantages, and potential creditor protection, which mutual funds do not.
Segregated Funds include two main types of guarantees:
Maturity Guarantee: Protects a portion of your principal investment (usually after 10 years). Even if the markets go down, you’re guaranteed to get back the protected percentage at maturity.
Death Benefit Guarantee: Ensures your beneficiary receives at least the guaranteed percentage of your principal when you pass away, regardless of market performance.
The numbers show how much of your investment is guaranteed at maturity and at death:
75/75 → 75% guaranteed at maturity, 75% at death
75/100 → 75% at maturity, 100% at death
100/100 → 100% at maturity, 100% at death
Yes, market values fluctuate. But your guaranteed amount will be paid out at maturity or death, based on your initial deposit (less withdrawals), giving you downside protection.
A reset lets you lock in a higher market value as your new guarantee. If your investment grows, you can reset the guarantee to the higher amount, though it restarts the maturity period.
No, there’s a slightly higher fee (MER) than traditional mutual funds. But many clients find the guarantees and estate benefits well worth the cost.
Yes, Seg Funds are often used inside corporations as a more protected alternative to GICs or market funds, with favorable tax treatment and capital preservation options.
Still Have Questions?
Disclaimer: The information contained in this article is provided for general informational purposes only and does not constitute financial, legal, tax, or investment advice. While we strive to ensure that the content is accurate and up to date, Safe Horizon Financial makes no guarantees regarding its applicability to your individual circumstances. Readers should consult qualified professionals (such as a licensed financial advisor, accountant, or lawyer) before making decisions based on the information presented. Safe Horizon Financial is not responsible for any actions taken or not taken as a result of this content.