What is a segregated fund?
A segregated fund is a professionally managed pool of money spread across a number of different investments. The purpose of this approach: to help diversify your savings and protect them from dips in the market.
Additionally, segregated fund policies offer you and your beneficiary (or beneficiaries) protection of your initial investment through built-in maturity and death benefit guarantees. In essence, these guarantees protect part or all of your initial investment. When you reach your maturity date or pass away, the insurance protection will top you up to your chosen percentage – either 75% or up to 100% of your original value, unless you’ve made excessive withdrawals.
How does it work?
The money you pay into a segregated fund is managed by some of the world’s leading investment managers. Great-West Life uses a disciplined and thorough review process to select and regularly monitor our investment managers, analyzing their performance and consistently holding them accountable.
Once your segregated fund policy is established, you’re free to switch from one fund to another and you can make lump sum or regular payments. You can also withdraw money, should you need it, keeping in mind that withdrawals will affect your maturity and death guarantees.
Great-West Life’s HelloLife program blends segregated funds and income annuities to create an all-encompassing program that can last throughout your retirement years. Ask your financial security advisor for more information about HelloLife.
How will it benefit me?
Protection from creditors
Your segregated fund investments could be protected from creditors where certain beneficiaries are designated, if you owe money, or are sued or file for bankruptcy. 1
A seamless way to pass on your wealth
In the event of your death, the person you choose to settle your affairs could find the process stressful. Segregated funds offer a simple and straightforward way to pass on your money. Unlike some investments, the death benefit from your segregated fund policy will go directly to your named beneficiaries and won’t flow through your estate. This could be faster, less expensive and less stressful than other options. If the policy has a designated beneficiary, the way you choose to leave your money, and to whom, remains private.2
Guaranteed income for life
To ensure your future income, the optional lifetime income benefit (LIB) feature provides protection against the risk of outliving your money, market downturns and losing your buying power. Your income won’t be reduced no matter how the segregated funds perform, unless you take out more than your guaranteed annual income amount. As your investment grows, the amount protected can periodically increase to reflect the current market value of your investment.3
Segregated fund performance
Fund Fact documents
Financial statements of The Great-West Life Assurance Company, Individual Investment Funds, 2016
- Great-West Life segregated funds Preferred Series pdf
Talk to an expert
Not feeling confident in your finances? You can talk to one of our financial security advisors who will work with you to craft a financial plan tailored to your needs.