Page 238 - A Canuck's Guide to Financial Literacy 2020
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Withdrawing from a Segregated Fund
A segregated fund contract is often held for at least 10 years. However, investor have the
flexibility to withdraw at any time during this 10-year period. Segregated funds are known for
their investment flexibility.
The investor would inform the insurance company of the amount that he wishes to
withdraw. Upon withdrawal, the maturity guarantee and the death benefit guarantee are
reduced and new guarantees are calculated.
Probate Protection
As segregated funds are a life insurance product, the policy owner is allowed to name a
qualified beneficiary on the contract in order to avoid probate. The beneficiary can be the
spouse, parents, children and grandchildren of the contract owner. Upon death, the value of
the account will be received by the beneficiary rather than the estate which may be subject
to probate fees.
Assuris Protection
To protect investors, Assuris offers their own guarantee if an insurance company becomes
insolvent and cannot meet its financial obligations to pay guarantees. Assuris will pay
$60,000 or 85% of the guarantee amount, whichever is higher.
