Segregated funds

Segregated funds include an insurance component that protects your investments against market downturns. You have the option of choosing a guarantee that protects 75% or 100% of your investments on contract maturity or death, should the market value of the funds be lower than that amount.

What it means for you:

On contract maturity or death, segregated fund guarantees protect your capital against severe market disruptions such as recessions or economic crises.

Resets secure your gains when markets are favourable to protect your investments during market downturns. Depending on the segregated fund series you choose, you can request resets 1 or 4 times a year to make sure the guarantee at death covers the return generated by your investments.

What it means for you:

Regardless of market fluctuations, resets mean that the value of your invested capital is protected and can only increase.

A segregated fund contract makes it possible to designate a beneficiary and therefore avoid paying several fees associated with estate settlement, including those for the probate process to certify the validity of the will.

These fees may vary according to your province of residence and your personal situation.

What it means for you:

The amounts payable are generally paid to your beneficiary(ies) in less than two weeks, which may help avoid probate fees.

The value of the funds is paid promptly to beneficiaries in the event of death. This means that, among other things, relatives do not need to personally take care of the deceased’s financial commitments.

What it means for you:

By avoiding the regular estate settlement process, the payment of assets held in segregated funds is quick and easy. Your loved ones therefore won’t have a long wait before receiving the money.

With a beneficiary designation, segregated fund investments are protected from creditors throughout your life and after death.

Under certain conditions.

What it means for you:

Investments held in segregated funds can be exempt from seizures by creditors in case of bankruptcy or lawsuits, regardless of the series chosen.

This can be an interesting advantage for small business owners and professionals who want to limit their risk of loss in case of bankruptcy, lawsuits, or personal or professional disputes.

All tax calculations are already done on the T3 slip (and the Relevé 16 in Quebec) sent by iA, which makes income tax returns quicker and easier.

Interesting fact: Losses in a segregated fund can be declared at the end of the tax year. You can therefore deduct any losses from your income in order to pay less tax.

What it means for you:

This makes it easier for you to file your tax returns and simplifies the task of your accountant, which can save you accounting fees.

With the FORLIFE Series, segregated funds give you access to guaranteed income for life without having to worry about losing capital.

What it means for you:

• Provides a stable and guaranteed source of income, while allowing you access to your capital
• Protects your estate in the event of death