How might an insurer handle the application of someone with a serious health issue wanting to invest in a segregated fund?

In the context of segregated funds, the correct understanding is that typically, no health underwriting is necessary for investments. This is a key feature of segregated funds because they are primarily investment products offered by insurance companies that provide capital protection and potential growth over time.

Investors can access segregated funds without undergoing a health assessment, as these funds are not solely insurance products. Instead, they combine investment features with some insurance-like benefits, such as a death benefit guarantee. This means that regardless of the investor's health status, they can usually invest in segregated funds as long as they meet the initial application criteria, which do not include health underwriting.

While insurers may have policies that could apply to higher risk individuals or other specific investment products, segregated funds are designed to be more accessible to a wider range of investors, including those with serious health conditions. This approach reflects an understanding that investment decisions should not be disproportionately impacted by an individual's health status, unlike traditional life insurance products, where health underwriting plays a significant role.