Guaranteed investment funds (GIFs) are similar to mutual funds. Both give you a way to take advantage of a large, professionally managed collection of investments. A key difference is that only insurance companies can offer GIFs. They have benefits that mutual funds don’t, including guarantees and estate planning advantages.
GIFs also known as:
- Segregated funds
- Seg funds
- Variable annuities
- Individual variable insurance contracts
Why choose GIFs?
GIFs let you participate in the markets through investments based on stocks, bonds and index funds. Sun Life GIFs invest in funds that expert money managers closely watch, with the goal of increasing their value.
Guarantees protect your investment from market declines. The market value of your investment may go up or down, but the amount you or your beneficiary receives won’t go below the guarantee amount.
You decide who gets the money if you die before your contract reaches its maturity date. The proceeds from a GIFs contract don’t need to go through your estate, speeding up the process to share your wealth, reducing fees for transferring it to your beneficiary, and providing flexibility if your situation changes.