Did you know that the decision to remain invested with an institution or financial advisor tends to be highly correlated with the financial performance of the savings product held?
In addition to returns, the full range of benefits offered by segregated funds must also be considered. In periods of volatility or in the face of certain life events, the benefits and guarantees offered by segregated funds take on a whole new importance.
The advantages of segregated funds in periods of volatility:
- Resets, offered for the Series 75/100, Ecoflex 100/100 and FORLIFE, are a key advantage that can be used to lock in earnings every year in order to protect your clients' investments against market volatility.
- Possibility of forlife income: Your clients could have access to a lifelong income without having to worry about a reduction in capital.
- Capital protection: At contract maturity or at death, this guarantee makes it possible to recover 75% or 100% of the sums invested if the market value of the funds is lower.
The advantages of segregated funds at death
- Avoiding probate fees: Designating a beneficiary makes it possible to avoid certain estate costs when money is transferred from a segregated fund, notably probate, professional and legal fees. Depending on the province of residence, these costs can really add up and have a significant impact.
- Quick settlement: The value of the funds is paid promptly to beneficiaries at death. This benefit saves family members from having to take personal responsibility for the deceased’s financial commitments.
Are your clients worried about returns and wondering about management fees?
Use the following tools to show your clients the full scope of the benefits and guarantees they enjoy:
- Estate Cost Comparison calculator to demonstrate the long-term benefits of segregated funds1.
1 Prepare scenarios PRIOR to the client meeting to present positive results. In some situations, the results may be unfavourable for segregated funds
