Seg funds can help to manage periods of economic and market uncertainty – while allowing you to stay invested in the markets.
What’s a segregated fund contract?
Also known as Guaranteed Investment Funds (GIFs), segregated fund contracts allow you to participate in market growth. They have death benefit and maturity guarantees that can protect part of your principal investment from market downturns.
At a minimum, these contracts offer a 75% death benefit guarantee and a 75% maturity guarantee.
This means that at death, your beneficiaries are guaranteed to receive 75% of all deposits made into the investment or its current market value – whichever is higher.* When the contract matures, you are guaranteed to receive 75% of all deposits made into the investment or the current market value – again, whichever is higher. Further, there are some GIFs that offer a 100% death benefit guarantee and additional features that let you lock-in market gains.
Investment options from Sun Life Global Investments to help manage economic downturns
If the prospect of a recession is frightening, don’t hesitate to contact your advisor. If you don’t have an advisor, maybe it’s time to find one. They can ease your mind during turbulent times and help you stick to your long-term plan and avoid hasty investment decisions. They can also explain all the features and benefits of GIFs. These types of investments may be worth exploring to help you stay invested and manage the market uncertainty that usually comes with a recession.
Seg funds offers other benefits that can be valuable in all economic scenarios, including a recession.
Learn more about the benefits of seg funds in this video.
*Any withdrawals you make will proportionately reduce the maturity and death benefit guarantee.