Milestone Insurance
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Phone: 416.410.4155
 Mutual Funds
 Segregated Funds
 Estate Planning
 Retirement Planning
Our combined years of experience provide you a vast wealth of investment knowledge. We have a strong policy of continuing education to ensure that our brokers are constantly upgrading their skills and knowledge to provide you with the best possible service.

Segregated Funds

A Segregated Fund is an investment fund set up and operated by a life insurance company. Life insurance companies are obligated to establish distinct funds that are separated or "segregated" from the general funds of the company; hence, the name "Segregated Funds". They operate in the same way as a mutual fund, and are effected by the same factors. However, there are some very important differences between segregated funds and mutual funds.

This segregation protects the investor in the event of insolvency of the managing life insurance company since the fund assets are held for the exclusive benefit of the unit holder.

Advantages Over Mutual Funds

Guarantees - Upon maturity of the investment contract, or death of the unit holder, you (or your beneficiary) receive the greater of the market value of the fund units accumulated or 100% of all deposits made prior to age 65 plus 75% of any deposits made after age 75 (this amount will decrease in proportion to any withdrawals from the fund). These guarantees are unique to life insurance company segregated funds and provide important safeguards against market fluctuations.

Protection from Creditors: With the proper beneficiary designation, segregated funds provide protection from creditors in the event of an unexpected lawsuit or bankruptcy. This feature is of prime importance to business owners, professionals and others that could be subject to a possible lawsuit.

Exemption from Probate: In the event of your death, a segregated fund with a named beneficiary, other than your estate, is exempt from probate, thus saving both probate and executor fees. This also ensures prompt receipt of assets by your beneficiary.

Disability Waiver Option: With this option, monthly deposits to Segregated Fund Investment Plans can be self-completing if you become disabled.

If you have any questions or would like to contact us for a complimentary financial review and second opinion on your investment portfolio, please call or write us today.

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