Segregated fund policies

Like a mutual fund, a segregated fund pools money from thousands of investors which professional fund managers invest in a variety of securities. Segregated fund policies are only available through insurance companies and take the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company's general operating funds.

Put the benefits of segregated fund policies to work for you.

Death benefit and maturity guarantees

Segregated fund policies protect part or all of your capital investment. They guarantee the value of the policy on its maturity date, as well as the value received on the death of the last insured person.

Estate bypass

When you designate a beneficiary other than your estate, the value of your segregated fund policy flows directly to him/her, generally bypassing the estate and potential probate fees, if any.

Creditor protection potential

Laws may protect a segregated fund policy in the event of bankruptcy or other action by creditors. It’s important to note that potential creditor protection depends on court decisions, which can be subject to change and can vary for each province. This protection cannot be guaranteed.

Lifetime income benefit option

Take control of your retirement and income by guaranteeing your income for life. With the lifetime income benefit option, your income won’t decrease regardless of how the segregated funds perform unless excess withdrawals* are taken. You get protection against the risk of outliving your money, market volatility and inflation.

You can choose to receive guaranteed income for life on select London Life segregated fund policies—find out more on the lifetime income benefit website.

Features and guarantees vary by policy and age of annuitant and some limitations apply. Maturity and death benefit guarantees are reduced proportionately by withdrawals.

* Amounts taken in a calendar year that are greater than the lifetime income amount are generally considered excess withdrawals.

A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.