Segregated funds – a secure choice for small-business owners

Canadian small-business owners may be gambling with their financial future by foregoing personal financial protection, especially during times of economic uncertainty. Small-business owners can potentially put their personal property, investments, and even their retirement savings in jeopardy, if they fail to protect these assets. One way to do that is through investing with segregated funds.

Because segregated fund contracts are held outside of the estate, they offer privacy and discretion in passing assets to those you care about most. Segregated funds offer the potential for creditor protection on both registered and non-registered assets, which can be especially advantageous to small business owners and entrepreneurs.

Segregated funds offer small-business protection:

75% - 100% of your premiums (less withdrawals) are guaranteed when your contract matures or on your death.
Bypass probate and associated fees by naming a beneficiary.
No deferred sales charges at death.
Quick payment to beneficiaries after you pass away.
Private and confidential beneficiary designations.
Creditor protection may be available in the event of bankruptcy or lawsuit.

Equitable’s Pivotal Select™ may offer protection from the claims of creditors. Self-employed professionals and business owners should consider protecting their personal assets from professional liability. In the event of bankruptcy or lawsuit, your personal assets may be protected from seizure if you have named your spouse, child, parent or grandchild as beneficiary. Having this added protection can help secure your financial future.

Learn more about Corporately Owned Segregated Funds and Pivotal Select. If you have any questions, please contact your Director, Investment Sales.

Date posted: October 10, 2024