Tax Free Savings Account, Registered Retirement Savings Plan, Registered Education Savings Plan, Retirement Income Fund and Life Income Fund are all options to plan for your financial future. RESP for example, is an ideal financial vehicle to help you save for a child’s or grandchild’s post-secondary education.

Using Segregated Funds for Retirement Planning and Estate Planning:

Segregated funds are similar to mutual funds but available only through insurance companies as an investment option of an insurance policy. Segregated funds allow you to combine the growth potential of investment funds with the protection of benefit guarantees provided under the policy. With segregated funds, your investments are protected from market downturns with the maturity and death benefit guarantees. Usually you can choose a 75% or a 100% maturity benefit guarantee option.

Your death benefit guarantee however is 100% of your net deposits. On your death, your beneficiary is guaranteed to receive the greatest of 100% of your net deposits or the market value of your segregated fund investments.*

*(varies with different plans and/or policy providers)

As part of an insurance policy, your segregated fund investments may be protected from creditors if you name your spouse, child, parent or grandchild as the beneficiary of your policy or if you name an irrevocable beneficiary (a beneficiary that cannot be changed). Potential creditor protection varies by province.

With segregated funds, the death benefit is paid directly to your named beneficiary rather than to your estate.

This means that the value of your segregated fund investments may bypass probate, a costly and lengthy process, allowing your named beneficiary to receive the proceeds faster.