What does the presence of optional benefits in segregated funds usually indicate?

The presence of optional benefits in segregated funds usually indicates additional costs for enhanced features. Segregated funds offer various optional benefits, such as guarantee options, enhanced death benefits, or maturity guarantees, which are designed to provide investors with added security and customization for their investments. These features typically come at an increased cost, as insurance companies charge fees for the added layer of protection and benefit they provide.

Investors can choose these optional features based on their individual risk tolerance and financial goals, knowing that while they may incur higher expenses, the potential for financial protection or added value may justify the cost. The costs associated with these benefits can impact the overall return on the investment but can also contribute to greater peace of mind and financial security, especially in volatile market conditions.