What is required to be obtained from a client before sending an application for a segregated fund to the insurance company?

The correct response highlights an essential aspect of the application process for segregated funds. Prior to submitting an application to the insurance company, it is necessary to secure a cheque for the first deposit. This is important for several reasons.

Firstly, the cheque serves as a demonstration of the client’s commitment and intent to invest in the segregated fund. It assures the insurance company that the client is not only interested but also ready to engage financially with the investment.

Secondly, the payment is often required to activate the setup of the segregated fund account. Insurance companies typically want to ensure that funds are available upon the acceptance of the application. This facilitates a smoother transition and prevents any delays once the application is approved.

In contrast, while government-issued identification may be necessary for identity verification, and designating a named beneficiary is a vital part of the policy setup, those steps can generally occur after the application and initial payment are processed. A rider election form may also be relevant for additional features or options within the policy but does not need to be submitted upfront with the application.