Market Growth.
Zero Risk to Principal.
Segregated Funds combine the growth potential of mutual funds with the security of insurance.Guarantee your capital and bypass the 1.5% probate tax.
Estate Value Calculator
See the difference between a Taxable Mutual Fund and a Guaranteed Segregated Fund.
Your Safety Net
Regardless of market performance, your beneficiaries are contractually guaranteed to receive at least:
$170,000
Mutual Fund
Probate Exposure
Fee Lost to Gov
-$4,418
Your estate loses ~1.5% of the total asset value to probate fees, plus potential legal delays of 6-12 months.
Segregated Fund
100% Protected
Total Estate Value (Net)
$262,531
*Values are estimates based on 6% return and standard MERs. Mutual fund probate fees based on Ontario rates.
Get Your Official Illustration
See the exact fund codes and historical performance.
The 3 Layers of Defense
Why business owners and HNIs choose Segregated Funds over Mutual Funds.
Estate Bypass
Avoid the 1.5% Ontario Probate Fee. Funds pay out directly to beneficiaries in approx. 2 weeks, versus 6-12 months for probated assets.
- No Legal Fees
- No Delays
Creditor Protection
If you designate a "preferred class" beneficiary (Spouse/Child), your assets are generally protected from creditors in bankruptcy or lawsuits.
- Ideal for Business Owners
- Professional Liability Shield
Total Privacy
Wills are public documents once probated. Segregated fund designations are private contracts between you and the insurer.
- No Public Record
- Confidential Payouts
Understanding the Guarantee
Unlike Mutual Funds, where you can lose 100% of your money, Segregated Funds place a "floor" under your investment.
Death Benefit Guarantee
If you pass away and the market is down, your beneficiaries receive the Guaranteed Amount (75% or 100% of deposits), not the lower market value.
Maturity Guarantee
If you hold the fund for the contract term (e.g. 15 years) and the market is down, the insurer tops you up to your guaranteed principal.
Guarantee Options
The "Growth" Option (75/75)
Lower fees (MER). Guarantees 75% of your capital at death or maturity. Best for long-term growth.
The "Estate" Option (100/100)
Higher fees. Guarantees 100% of your capital. If you invest $500k, your family gets at least $500k, period.
Asset Class Comparison
| Feature | Segregated Fund | Mutual Fund | GIC |
|---|---|---|---|
| Principal Guarantee | 75% - 100% | 0% | 100% |
| Probate Fees | Bypasses (0%) | Subject to 1.5% | Subject to 1.5% |
| Creditor Protection | Potential | No | No |
| Privacy | 100% Private | Public (Probate) | Public (Probate) |
| Market Growth | Yes (Equity/Bond) | Yes | No (Fixed Low Rate) |