What do optional benefits in segregated funds typically include?

Optional benefits in segregated funds are features that provide additional security and advantages to policyholders beyond the basic investment options. One of the most significant optional benefits is the guarantee of income or increased death benefits. This means that policyholders can receive a steady income stream during their retirement years or ensure that their beneficiaries receive a specified amount upon their passing, regardless of the performance of the underlying investments.

This type of benefit is particularly appealing to individuals looking for a safety net in uncertain market conditions. The guaranteed income can help with financial planning, providing reassurance that there will be a minimum return or payout, which can be crucial for maintaining a stable financial lifestyle. Additional death benefits can give peace of mind, ensuring that loved ones are financially supported even if the market does not perform favorably at the time of the policyholder's death.

The other choices, while they may seem appealing, do not typically constitute the fundamental optional benefits associated with segregated funds. For instance, guaranteed interest rates are more commonly associated with fixed income products, while enhanced liquidity features and tax benefits, although advantages in some contexts, are not standard elements that define the core offerings of segregated fund optional benefits. Hence, guaranteed income or increased death benefits stands out as the primary and most relevant