What is the role of beneficiaries in segregated funds?

Beneficiaries in segregated funds play a crucial role primarily related to the death benefit component of these financial products. When a policyholder passes away, the designated beneficiaries receive a specified amount, typically the death benefit, which is determined based on the policy's terms. This benefit often includes the value of the segregated fund accounts at the time of the policyholder's death, potentially providing financial support to the beneficiaries and helping them manage their financial obligations during a challenging time.

Other roles proposed in the options, such as maintaining fund liquidity, assessing fund performance, or providing investment advice, do not accurately capture the primary function of beneficiaries. Beneficiaries are not responsible for these investment management tasks; rather, their primary purpose is to receive the financial benefits outlined in the policy terms upon the event of the policyholder's death. This aspect underscores the importance of naming beneficiaries correctly, as it directly impacts the distribution of the death benefit and ensures that the policyholder's intentions are honored.