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Segregated fund insurance products are pools of money
that are professionally managed to achieve certain financial objectives.
Some think that Segregated Funds look like and behave like mutual funds. But
there are several important differences.
One key difference is the risk factor. In theory, all monies put into a
mutual fund are at risk. By law, Segregated Funds are not totally at risk
for the investor. Segregated Funds must return at least 75% of the premiums
paid in, without interest, (less any withdrawals) upon death or at maturity.
The guaranteed death benefit for Foresters Segregated Funds, FGF Plus, is
100% of the premiums paid in, without interest, (less any withdrawals).
Segregated Funds puts a floor under investments that don’t perform as
expected. In volatile markets, this can allow you to invest with an eye to
the upside while protecting your downside.
There are many varieties of Segregated Funds, each with its own objectives
and strategies. Work with a Foresters representative to determine which
Funds best meet your investment objectives and the degree of risk you are
comfortable with.
Segregated fund insurance products can also be a primary tool for estate
planning. Because Segregated Funds are life insurance products, holders can
name a beneficiary. Funds paid out at death, are paid without delay to the
named beneficiary and are not subject to probate.
Under certain conditions, Segregated Funds may be exempt from creditor
seizure under provincial legislation, so long as a spouse, parent, child or
grandchild is named as beneficiary.
Foresters Segregated Funds can be incorporated into your Registered
Retirement Savings Plan.+
Foresters Family of Segregated Funds
Foresters offers eight Segregated Funds, each with its own investment
objectives. Four funds invest in stocks and bonds and the other four in
popular market indices. The return depends on the value of the assets
held by the Fund.
Subject to certain minimums, you have the option to make additional deposits
at any time and to transfer money between Funds.
Foresters Reset Option
This Option allows you to lock in market growth. When Foresters
creates your Segregated Fund certificate, a Maturity Date 10-years out is automatically set. Ordinarily, you can
renew at 10-year intervals, but Foresters offers you a Reset Option that
enables you to ask that the 10-year period start again enabling you to
lock-in any growth to that date.
Contact a Foresters representative to evaluate how Segregated Fund insurance
products fit into your financial picture. You should discuss fully all
aspects of registration with your representative before the purchase of any
registered, individual variable insurance contract.
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