A segregated fund is an investment fund that accumulates value by investing in securities such as stocks and bonds. The death and maturity guarantees ensure that the policyholder will retain a minimum amount of their investment regardless of market performance. Typically, the guarantee on an individual segregated fund policy is 75% or 100% of what the policyholder invested.
Guarantees that may be offered on a segregated fund policy are:
The guarantee on a segregated fund is protected under the “Investments / Savings” category in the Assuris protection.
If your life and health insurance company fails, Assuris guarantees that you will retain up to $100,000 or 90% of your benefit amount, whichever is higher.
$75,000
($100,000 × 75%)
Guaranteed amount at death or maturity
Since your segregated fund guarantee is less than $100,000, you will retain your full benefit amount.
$75,000
Protected benefit amount
$112,500
Since your segregated fund guarantee is more than $100,000, you will retain 90% of your benefit amount.
$101,250
($112,500 × 90%)
Adjusted benefit amount
$200,000
Guaranteed amount at death or maturity
Since your segregated fund guarantee is more than $100,000, you will retain 90% of your benefit amount.
$180,000
($200,000 × 90%)
Adjusted benefit amount
At the time of failure of a life and health insurance company, your policy will either be in:
If your life and health insurance company fails, the value of your fund will not be impacted.
Guaranteed withdrawal balance at date of failure
Explanation
Adjusted guaranteed withdrawal balance
$117,000
($130,000 × 90%)
Guaranteed withdrawal balance at date of failure
Explanation
Adjusted guaranteed withdrawal balance
$1,041.67/month
$12,500/year
Since your monthly income is less than $5,000/month, you will retain the full benefit amount.
$1,041.67/month
$12,500/year
