Understanding segregated funds and their benefits
A segregated fund is a type of insurance contract between the contractholder and Equitable. It combines investment growth potential with valuable insurance protection. As a contractholder, you have the flexibility to:
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• Select a guarantee class that suits your financial goals.
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• Choose from a range of investment options.
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• Name a beneficiary to receive the death benefit.
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• Choose between a registered or non-registered contract.
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• Receive payments regularly or at contract maturity.
Please note: Your choices may impact tax consequences. The value of your contract may fluctuate with market conditions. For more information, refer to the Contract Provisions and Information Folder (Form #2245).
Segregated funds versus mutual funds
While segregated funds and mutual funds share investment features, segregated funds offer distinct estate planning advantages:
- • You can name a beneficiary on non-registered investments.
- • Upon death, proceeds are paid directly to the beneficiary, bypassing probate and reducing estate settlement costs.
- • Segregated funds offer death and maturity guarantees protecting between 75% and 100% of your principal
- • As an insurance product, segregated funds offer potential creditor protection in the event of bankruptcy
Learn more in The Equitable Investment Advantage (Form #1619).
Guarantee classes
Equitable offers three guarantee classes, each designed to meet different investor needs:
Investment Class (75/75)
- • 75% guarantee on both maturity and death.
- • No resets.
- • No additional insurance fees.
- • Broad investment selection.
Estate Class (75/100)
- • 75% maturity guarantee and 100% death benefit guarantee.
- • Annual death benefit resets available until age 80.
- • Ideal for investors focused on estate protection.
Protection Class (100/100)
- • 100% guarantee on deposits made before the first policy anniversary along with any deposits made with more than 15 years to go to maturity
- • 100% death benefit guarantee.
- • Annual death and maturity guarantee benefit resets available until age 80.
- • Designed for investors seeking maximum protection.
Compare all classes in the Product at a Glance (Form #2273) and explore further in the Equitable GIF Advisor Guide (Form #2290).
Maturity guarantee explained
The maturity guarantee ensures that on the contract’s maturity date, you receive the greater of:
- • The current market value of your investment,
- • Or 75% or 100% of your original deposit (based on the guarantee class), adjusted for withdrawals.
- • Protection Class: Maturity guarantee every 15 years.
- • Investment Class and Estate Class: Maturity date is at age 105.
Details available in the Equitable GIF Advisor Guide (Form #2290).
Death benefit guarantee
This guarantee protects your investment if the Annuitant passes away. The beneficiary receives the greater of:
- • The market value of the funds,
- • Or 75% or 100% of the original deposit (based on guarantee class), adjusted for withdrawals.
Note: A fee applies for the 100% death benefit guarantee. See the Equitable GIF Advisor Guide (Form #2290) for more information.
Non-reducing death benefit
Unlike many providers, Equitable’s Estate and Protection Classes maintain a 100% non-reducing death benefit guarantee, even after age 80—providing lifelong protection.
Understanding resets
A reset allows you to lock in higher values for your maturity or death benefit guarantees. Key features:
- • Available once per year until the Annuitant turns 80.
- • Can be done on any day of the year for flexibility.
- • Maturity guarantee resets restart the 15-year maturity guarantee period.