Retirement Annuities Segregated Funds

Constructing Wealth while lowering risk: Annuities and Segregated Funds

Insurance policies can house various long-term investment vehicles, including segregated funds and annuities. They offer several benefits and could fit your varied investment strategy well.

Protect your money with an annuity.

What Is an Annuity?

An annuity is a type of investment that provides a guaranteed income stream in retirement. Those worried about using down their savings too quickly may consider buying an annuity from a financial institution.

Customers agree to pay a fixed sum, either in periodic payments or in a lump sum, when they buy a retirement annuity. It’s similar to a policy agreement between an insurance company and its policyholder.

Retirement income from an annuity is guaranteed never to stop. An annuity is a financial product that promises a regular monthly payout. Your age, gender, current interest rate, and the length of time you want to lock in a guaranteed income all play a role in determining the exact sum. You can earn money with little to no danger. Annuities provide:

  • A guaranteed flow of money for a set amount of time or forever
  • An investing option that doesn’t call for constant attention or decision-making.
  • Confidence that you won’t run out of money before your time

Various Annuity Forms:

  • Life:

Give you a steady stream of money for the rest of your life.

  • Guaranteed Duration:

Offer a steady stream of money over a predetermined period.

  • Prescribed:

Provide the possibility of tax breaks.

The safety and potential growth of segregated money.

What Is a Segregated Fund?

Like a mutual fund, a segregated fund is an investment vehicle. It’s a collection of investors’ money that works together to grow the fund. Stocks and bonds, among other investments, receive the cash. A segregated fund’s status as an insurance contract differentiates it from a mutual fund.

Like mutual funds, segregated funds are a pool of money managed by experts, but each investor’s money is kept separate. As insurance contracts backed by the Insurance Act, they come with a range of benefits.

  • Guarantee:

Depending on the segregated fund, you might expect between 75% and 100% capital protection upon maturity (usually ten years).

  • Creditor safety measures:

Segregated funds may provide some safety for your investments during a bankruptcy filing.

  • Estate preparation:

When you pass away, your segregated fund assets can avoid part or all of your estate’s probate costs and taxes.


Always consult your financial planner and insurance expert before making any major life decisions that could significantly impact your finances, such as your investing strategy or retirement options. If you’re interested in our segregated funds and retirement annuity plan, don’t hesitate to get in contact with JBF Financial.