What benefit do beneficiaries receive from segregated funds?

Beneficiaries of segregated funds receive a death benefit, which is one of the key features that distinguishes these funds from other types of investment vehicles. The death benefit guarantees a specific amount will be paid to the beneficiaries upon the death of the policyholder, regardless of the market value of the investments at that time. This provides financial security and peace of mind to the policyholder, knowing their beneficiaries will receive a predetermined sum, which can be crucial in planning for the family's future.

While options like regular income payments or shares of investment returns may be associated with other investment products, they do not specifically apply to the benefits provided to beneficiaries of segregated funds. The potential for tax-free growth is also a characteristic of some investment vehicles, but the guaranteed death benefit is a primary advantage of segregated funds that specifically addresses the needs of beneficiaries in the event of the policyholder's passing.