Which of the following is a major liability protection offered by segregated funds?

Segregated funds are a unique investment vehicle that include features often associated with insurance products. One of the important benefits they offer is protection from creditors and legal claims. This means that if an individual faces financial difficulties, such as bankruptcy or lawsuits, the assets held within a segregated fund may be shielded from creditors, making them a strategic choice for individuals looking to safeguard their investment.

This liability protection is particularly valuable for individuals in professions that may involve higher risks of legal claims, as well as for those wanting to ensure that their investments are preserved for their beneficiaries. The characteristics of segregated funds, including the insurance component, contribute to this protective feature, ensuring peace of mind for investors amidst financial uncertainties.

In contrast, the other options present different features that are not primarily focused on liability protection. While segregated funds can provide a level of market fluctuation mitigation due to their guaranteed death benefit or maturity guarantee, these do not address liability concerns in the same way that creditor protection does. Guaranteed returns on investments apply more to fixed annuities rather than typical features of segregated funds, and the promise of full recovery of invested capital does not typically exist; the potential for market loss still remains. Thus, the strong liability protection from creditors and legal claims