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The insurance advantage: Give your investments the insurance edge

insurance advantage

With insurance-based investments (registered and non-registered), you can name a beneficiary. This allows you to direct the value of those investments, at the time of your death, to the individual(s) you have designated within your insurance contract in a manner that is private, outside of your estate, while bypassing the expense and inconvenience of probate.

Two possible investments that you should consider are segregated funds and a Guaranteed Interest Contract (GIC). These investments permit you to streamline the flow of assets to the designated beneficiary more efficiently and without much delay.

Protecting the Value of your Estate
With segregated funds, your investment is protected against losses in the markets with a death benefit guarantee. If the market value is down when you pass on, the amount of your deposit is protected. Your named beneficiaries will receive up to 100% of your original investment and, depending on the options you select, the amount could be considerably more. Of course, if the market value is higher, that's the amount they'll receive.*


Segregated funds might meet your needs if you:

  • Are retired, or close to retirement, and worried about risk.
  • Want the growth potential of equity investments, but you know volatile stock markets will keep you up at night.
  • Want to provide for someone after your death.
  • Own your own business and want the potential for creditor protection.


Your financial advisor can help you choose the best option of segregated funds for your situation.

The Value of Probate Bypass
Example: A $100,000 investment can attract over $5,000 in probate and legal fees when you die. How can you easily avoid this expense?


Based on $100,000 example in Ontario





Insurance Company
Investment With A
Named Beneficiary

Probate Fee

$250+$15 per $1,000> $50,000



Executor’s Fee

Varies by province – up to 5% for corporate executors (1% used as majority name a family member)



Legal Fees

0.5% to 3% of assets + Accounting fees



Total cost




This table illustrates a scenario of what could happen if an investor were to die with a $100,000 investment. Costs will vary depending on the province and complexity of the estate. * Death benefit guarantee is applicable on death of annuitant and is calculated at date of notification of death





© Copyright of this article is held by The Manufacturers Life Insurance Company (Manulife Financial). You are free to make copies of this article and to distribute it, either in paper form or electronically, as long as you do not change or remove any part of this work. All other uses are prohibited.
Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including segregated funds, mutual funds, annuities and guaranteed interest contracts. Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.

Commissions, trailing commission, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.



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