For all those individual investors, who want the growth benefits of financial investment but wish to have a security of insurance products, then segregated funds are for you.

Do you know, unlike mutual funds, segregated funds protect your funds upto 75% to 100%? That’s why it is profitable to invest in such funds as it gives you a guarantee for more than half of your funds.

Therefore, in this guide, let’s discuss in detail what is segregated funds in Toronto and how they work and also discuss about best resp education plans in Toronto.

What are Segregated Funds in Toronto?

Segregated funds in Toronto are investment plans or products used by Canadian individuals to help individuals make secured investments. It is like investing in mutual funds but they are a more secure version.

A segregated fund is a type of investment that is commonly used by Canadian insurance companies to manage annuity insurance products. (Unlike normal funds, which are baskets of investments such as stocks, bonds, securities, etc that help you diversify your investment portfolio.)

These funds follow the same thing but with a twist: This time instead of purchasing funds from a brokerage you need to buy segregated funds through insurance companies such as platinummutualltd.com/.

Segregated Funds VS Mutual Funds

Segregated funds and mutual funds are pooled investments. But do you know segregated funds are more than just an investment vehicle? Let’s check out the following aspect to have more clarity.

Different Aspects to Consider -> Segregated Funds -> Mutual Funds
Chance to avoid probate -> Yes -> No
Death and maturity benefit guarantee -> Yes -> No
Reset guarantees -> Yes -> No

How Segregated Funds in Toronto Work?

Segregated funds are far better than any other types of funds, as they are a mixture of insurance and investment. Let’s check how they work:-

● You can only purchase from Life Insurance Company:

It is no surprise that only insurance companies can sell insurance policies. It's worth mentioning that since you purchased the fund, you will only have limited access to money until the contract matures.

● Maturity Guarantee:

Segregated funds in Toronto guarantee a return of 75% to 100% of their initial capital at the time of maturity. Unlike mutual funds, there is no risk of heavy losses.

● You must hold Segregated Funds for a certain period:

Do you know segregated funds generally last from 10 years to 15 years? If you want access to your money before the maturity period, you may end up losing the principal amount. Also, you may have to pay a penalty of a certain amount. Therefore, it is recommended that you should not break your funds before its maturity date.

● Death Benefit:

If you pass away, your beneficiary or nominee will receive the invested amount at the market price or you can get the principal amount.

● You can opt for Multiple Layout Options:

Furthermore, policyholders can also opt for multiple layout options. You can get the payment after the maturity of your policy at once or you can opt for a monthly, quarterly, half-yearly, or yearly basis.
Best RESP Education Plans in Toronto

With numerous RESP providers in Toronto, it may be difficult to evaluate each of the one them. It’s important to find one that perfectly matches your needs and requirements. Let’s discuss the key features of the best RESP education plans in Toronto:-

● Diverse investment options
● Competitive fees
● Exceptional flexibility
● User-friendly account setup and management

Toronto International Student Insurance

The healthcare system in Toronto, Canada is run through the provincial administrations. You will get all the benefits either free or have to pay the bare minimum charges. It is done because of the taxes paid by their citizens.

Do you know some provinces of Canada provide health assistance to international students after considering several factors? You are also eligible for different types of Toronto international student insurance, which includes several insurances such as travel insurance, health insurance, pre-arrival travel insurance, finding insurance, etc.

Conclusion

In a nutshell, hope now you understand what exactly segregated funds in Toronto and how it works. Further, we have discussed the best resp education plans in Toronto and what are the types of international student insurance in Toronto, and how they get the benefit of such insurance!

For more information kindly call us @416-315-8569 and also visit our website www.platinummutualltd.com .