Segregated funds are investment funds you select within an insurance contract. They provide the benefit of insurance guarantees while allowing you to diversify your investments from the growth potential of mutual funds.
Segregated fund contracts offer benefits including:
Protection of your deposits when your contract matures
Protection of your deposits when you die
Potential protection against creditors in the event of bankruptcy or seizure, if you have named an irrevocable beneficiary, or named a family member as your beneficiary. Some limitations apply, so independent legal advice is recommended to determine the availability of creditor protection in your circumstances and jurisdiction.
Ability to bypass distribution of estate, so funds are paid directly to your named beneficiary.
Segregated fund investments let you:
Choose from a variety of professionally managed asset types, such as stocks and bonds
Diversify your portfolio geographically
ivari Guaranteed Investment Funds (GIF)
Your investment options
ivari GIF offers a range of segregated funds and portfolio solutions managed by expert portfolio management team at Foresters Asset Management, or by investment managers from other brand name funds.
GIF contract feature
The ivari GIF contract provides important insurance guarantees to protect your assets. In the event of your death, 100% of the deposits are guaranteed. If you live to 100, then 75% of your deposits are guaranteed *1
The contract also features automatic annual resets of the death guaranteed amount. On each anniversary of the contract, if the market value of your investments has increased, the death guaranteed amount will be reset to the new market value. Resets may occur until you turn 75.
With the ivari Guaranteed Investment Fund contract:
100% of your deposits are guaranteed when you die.*(1)
75% of your deposits are guaranteed when your contract matures.*(1)
When your contract reaches maturity, 75% of your deposits to your ivari Guaranteed Investment Funds are guaranteed.*(1)
Protect your capital upon death
When a segregated fund contract is opened, an annuitant must be designated. The annuitant is the person on whose life the contract maturity date is determined and upon whose death a benefit will be payable.
If the annuitant dies before the contract maturity date, ivari will pay a death benefit that equals the greater of 100% of all deposits made to your segregated fund contract*(1) or the market value of the segregated fund contract. This payment will be made to a beneficiary the owner has named to receive the death benefit.
Lock in your market gains
Take advantage of yearly increases in the market value of your investments with the automatic annual reset of the death guaranteed amount.
A reset is automatically triggered on each anniversary of the contract, right up until the year the annuitant turns age 75. This feature compares the current market value of your contract to the current death guaranteed amount and resets to the higher of these two amounts.
Estate planning benefits include:
Ability to bypass distribution through the estate
Segregated funds are investments within a life insurance contract, so the proceeds of your segregated fund contract can be paid directly to your named beneficiary. This bypasses the probate process and its fees*(1), saving time and money for your heirs (not applicable in Quebec).
Potential protection from creditors
Segregated funds offer potential protection from creditors in the event of bankruptcy or seizure by a creditor, if you have named an irrevocable beneficiary, or named a family member as your beneficiary. This benefit can be valuable for business owners or self-employed individuals whose assets may be exposed to creditors. Some limitations apply, so independent legal advice is recommended to determine the availability of creditor protection in your circumstances and jurisdiction.
For more details, please see the Information Folder and Annuity Policy. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.
Individual funds and bundled portfolios
Within the ivari GIF contract there is a variety of individual funds managed by some of the best investment firms in the industry.
*(1) Less proportionate reduction for withdrawals and fees. back
†(2) Non-registered, RSP, RIF, LIRA, LRSP, LIF, PRIF, RLSP or RLIF: December 31 of the year in which the annuitant turns 100 years of age. New Brunswick LIRA and LIF: December 31 of the year in which the annuitant turns 90 years of age. Newfoundland LIRA and LIF: December 31 of the year in which the annuitant turns 80 years of age. back