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Choosing Safe Investments
You may no longer be young,
and you may be thinking about bequeathing an estate to your heirs. To
do so, it is best to choose safe guaranteed investments so that you can
have peace of mind as your assets grow. Such investments include joint
and last survivor annuities, guaranteed interest investments and segregated
funds.
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Joint and Last Survivor Annuities
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A joint and last survivor annuity is a contract
under which you receive regular payments for your lifetime in exchange
for payment of a single premium. It is a choice that gives you security
because the period of the guaranteed-income payments is known in advance.
Various options may be added to your annuity
to adapt it to your personal needs. For example, you may elect to establish
your annuity on your own life only or to have payments made to your spouse
in the event of your death.
When the annuity is purchased on a joint basis,
payments will continue on behalf of your spouse after your death, according
to the reversion percentage determined when you purchased your contract.
This percentage is generally between 60% and 100%. Hence, this choice
gives you or your spouse an income for life.
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Options
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Life Annuity With Guaranteed Repayment
of the Capital
The addition of a capital repayment guarantee ensures that the initial
capital is recovered, less payments made since the contract was
issued, in the event of a premature death. The remaining amounts
will be paid to your spouse or the beneficiary you have designated.
As a result of this guarantee, the efforts you have long made to
accumulate your annuity capital will not have been in vain since
your heirs will have a significant source of income in the event
of a premature death.
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Life Annuity With a Guaranteed Period
The life annuity with a guaranteed period (5 years, 10 years, 15
years, etc.) provides you with an income for your lifetime. In the
event of a premature death, the monthly annuity payment continues
on behalf of the beneficiary until the end of the guaranteed period
chosen.
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Guaranteed Interest Investments
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Guaranteed interest investments allow your money
to work for you at a guaranteed interest rate for a fixed term. This type
of investment combines security and return, since the capital invested
is 100% guaranteed at maturity, and the interest rate is fixed and guaranteed
for the term of the investment.
Guaranteed interest investments also provide
you with other advantages offered by insurance companies:
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Under certain conditions, you can
protect your savings against potential creditors
depending on the beneficiary you have designated.
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Under certain conditions, we ensure
the continuity of your contributions in the event of disability |
In addition, your guaranteed interest investments
are protected by Assuris,
Protecting your life insurance.
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Segregated Funds
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Segregated funds have been distributed exclusively
by life insurance companies for several years. To preserve the interests
of investors, the assets of these funds are managed separately from the
company’s assets. Hence, these funds are known as “segregated
funds.” Because they are established pursuant to provincial insurance
legislation, these funds have several advantages over mutual funds, which
are governed by securities commission legislation.
See Industrial Alliance’s Ecoflex
Segregated Funds for further information.
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A Guarantee on Your
Investment
Segregated funds are the only funds to offer a guarantee on
the amounts invested. This guarantee protects your capital from
fluctuations in the financial markets. It protects the value of
your savings without reducing the anticipated return prospects.
This guarantee is applicable at maturity or death.
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Guarantee at Maturity
Pursuant to this guarantee, all deposits1 that you make
up to 10 years from the maturity date are 100% guaranteed2.
In addition, the entire appreciation realized at the end of this
period is also 100% protected2. Subsequent deposits made
up to the maturity date are 75% protected.
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Guarantee at Death
In the event that you die before the maturity date, your heirs are
assured of receiving either the market value of the accumulated
funds or the guaranteed amount described in the previous paragraph,
whichever is higher.
1 Adjusted in proportion to
withdrawals, if any.
2 75% for specialty funds and any deposits made on or
after the age of 70.
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Protection of Your Estate’s
Value
Contrary to mutual funds, segregated funds are not subject to
probate
fees at death if you have designated a beneficiary. You can be assured
that the full value of your investments will go to your heirs. Designating
a beneficiary therefore provides two significant advantages at the
time of your death:
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Quick Payment of Accumulated Amounts
The value of your investments is paid directly to your beneficiaries,
who will not have to await final settlement of your estate.
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Higher Estate Value
Probate fees are not payable on the amounts transmitted to the beneficiaries
at death since these amounts are not included in the total settlement
of the estate.
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Protection of Your Investments
Against Potential Creditors
You may render the amounts accumulated in your contract exempt from seizure. Designating an irrevocable beneficiary or a revocable beneficiary such as a married spouse or a direct ascendant or descendant (father, mother or child) could render the amounts accumulated exempt from seizure. This protection shelters your investments from potential creditors and maintains your financial security—and the financial security of your loved ones*.
*The terms and conditions regarding exemption from seizure are subject to change in accordance with your province of residence and your personal situation. We recommend that you discuss this matter with your financial advisor.
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Consumer Protection Agency
Assuris, Protecting
your life insurance provides additional protection to holders
of segregated funds by insuring payment of the amounts guaranteed
in the contract at maturity or death.
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