The
Insurance Advantage
Give Your Investments the Insurance Edge
With insurance-based investments (registered and non-registered),
you can name a beneficiary. This allows you to direct the
value of those investments, at the time of your death, to
the individual(s) you have designated within your insurance
contract in a manner that is private, outside of your estate,
while bypassing the expense and inconvenience of probate.
Two possible investments that you should consider are segregated
funds and a Guaranteed Interest Contract (GIC). These investments
permit you to streamline the flow of assets to the designated
beneficiary more efficiently and without much delay.
Protecting the Value of Your Estate
With segregated funds, your investment is protected against
losses in the markets with a death benefit guarantee. If the
market value is down when you pass on, the amount of your
deposit is protected. Your named beneficiaries will receive
up to 100% of your original investment and, depending on the
options you select, the amount could be considerably more.
Of course, if the market value is higher, that's the amount
they'll receive.*
Segregated Funds Might Meet your Needs if you:
- Are retired, or close to retirement, and worried about
risk.
- Want the growth potential of equity investments, but
you know volatile stock markets will keep you up at night.
- Want to provide for someone after your death.
- Own your own business and want the potential for creditor
protection.
Your financial advisor can help you choose the best option
of segregated funds for your situation.
The Value of Probate Bypass
Example: A $100,000 investment can attract over $5,000 in
probate and legal fees when you die. How can you easily avoid
this expense?
Based on $100,000 example in Ontario |
Cost |
| Fee |
Structure |
Non-Insurance
Company Investment |
Insurance
Company
Investment With A
Named Beneficiary |
| Probate Fee |
$250+$15 per
$1,000> $50,000 |
$1,000 |
$0 |
| Executor’s
Fee |
Varies by
province – up to 5% for corporate executors (1%
used as majority name a family member) |
$1,000 |
$0 |
| Legal Fees |
0.5% to 3%
of assets + Accounting fees |
$3,000 |
$0 |
|
Total cost |
$5,000 |
$0 |
This table illustrates a scenario of what could happen if
an investor were to die with a $100,000 investment. Costs
will vary depending on the province and complexity of the
estate.
* Death benefit guarantee is applicable on death of annuitant
and is calculated at date of notification of death
© Copyright of this article is held
by The Manufacturers Life Insurance Company (Manulife Financial).
You are free to make copies of this article and to distribute
it, either in paper form or electronically, as long as you
do not change or remove any part of this work. All other uses
are prohibited.
Manulife Investments is the brand name
identifying the personal wealth management lines of business
offered by Manulife Financial and its subsidiaries in Canada.
As one of Canada’s largest integrated financial services
providers, Manulife Investments offers a variety of products
and services including segregated funds, mutual funds, annuities
and guaranteed interest contracts. Manulife and the block
design are registered service marks and trademarks of The
Manufacturers Life Insurance Company and are used by it and
its affiliates including Manulife Financial Corporation.
Commissions, trailing commission, management
fees and expenses all may be associated with mutual fund investments.
Please read the prospectus before investing. Mutual funds
are not guaranteed, their values change frequently and past
performance may not be repeated.
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