As Canadian financial institutions evolve, the lines between banks, trust companies and insurance companies have blurred. The following financial products are available through life insurance companies:
Investors should be aware of the unique benefits offered by life insurance companies in terms of their investments.
Investing in segregated funds through a life insurance company provides the investor with two guarantees. The first is a guarantee when a maturity period is reached and the second is in the event of death. Many insurers allow selection of guarantees; as different fees are incurred from these guarantees, it is important to discuss your options with an advisor.
Although incredibly important, many individuals overlook the significance of safeguarding their investment assets from creditors. In general, assets held within life insurance and annuity contracts are creditor protected provided that a beneficiary has been assigned to the policy – this includes segregated funds, RRSPs and term deposits.
Investments held with a life insurance company transfer directly to the designated beneficiary that has been named. This allows the beneficiary to avoid the estate and probate process and can lead to significant savings in fees and time delays.
For any current investment holdings that are linked to the above vehicles, speak to a trusted advisor if you are interested in adding this extra protection to your investments. We will present you with all the industry wide options available to you, as well as managing and expediting the transfer process.