What is the main benefit of adding a reset option to a segregated fund?

Adding a reset option to a segregated fund primarily locks in a higher death benefit. This means that if the value of the segregated fund increases, the death benefit can be reset to this higher amount. Should the investor pass away, their beneficiaries would receive the higher death benefit value instead of the original amount or the current market value, whichever is greater.

This feature is particularly valuable in volatile markets, where the fund's value may fluctuate significantly. By offering the option to set a higher death benefit after gains, it protects the investor's heirs from the potential downside of market fluctuations while maximizing the potential benefit that the fund provides.

Access to funds, protection against investment losses, and guarantees of market returns are not characteristics provided by the reset option. The reset option specifically focuses on enhancing the death benefit feature associated with segregated funds.