Grow, Protect, Transfer

1. A Segregated fund contract is:

• All in one investment, insurance product and estate planning tool.
• Only available from an insurance company

2. The contract players:

• Contract owner – the person who owns the contract
• Successor owner – the replacement owner of the contract after the original owner dies
• Annuitant- the person on whose life the maturity and deathe benefits are paid
• Successor annuitant – the replacement person on whose life the maturity and death benefits are paid
• Beneficiary – the person who will receive the funds when the annuitant, and successor annuitant if named, dies (can be anyone: a family member, friend or charity)

3. Investment Component:

• Opportunity to participate in the markets.
• Pooled investments for economics of scale
• Range of funds across all assest classes to choose from to help grow and diversify a portfolio
• Option to choose from a non-registered account or a tax-advantaged register plan

4. Insurance Component:

• Estate planning and wealth transfer features
• Potential creditor protection
• Asset protection through death benefit and maturity guarantees

5. Estate planning advantages:

• Bypasses accounting, legal, administrative and probate fees
• Potentially protects from estate creditors and avoids court challanges to a will
• Preserves privacy by bypassing probate
• Transfers welath quickly to beneficiaries
• Controls payments to beneficiaries – annuity settlement option lets you decide whether welath is paid as a lump sum or gradually over time

6. Guarantees:

• Death benefit gurantee – percentage of deposites, reducred by any withdrwals, that the beneficiary is guranteed to receive when the last annuitant dies.
• Maturity benefit guarantee – percentage of deposits, reduced by any withdrawals, that the contract owner is guaranteed to receive when the contract matures.
• Maturity date – occurs after a minimum number of years has passed or at a contract set date (for example, age of the annuitant)