What are segregated funds primarily designed to offer?

Segregated funds are specifically designed to provide a blend of investment options alongside insurance features. This combination offers investors various benefits, including the potential for capital growth similar to mutual funds while also incorporating features often associated with insurance products, such as maturity guarantees and death benefits.

The investment aspect allows policyholders to choose from a range of underlying assets, such as stocks, bonds, or other securities, thereby enabling them to align their investment choices with their risk tolerance and financial goals. At the same time, the insurance component provides a safety net; for instance, upon the death of the policyholder, the beneficiaries may receive a specified amount, which can be advantageous for estate planning.

The unique structure of segregated funds makes them appealing to individuals looking for both investment growth and some level of protection against market volatility and loss, demonstrating their primary purpose effectively.