What Are Segregated Funds?
All of the CDA funds are “segregated” — a type of investment fund that offers distinct advantages to dental professionals and their families. In some respects, segregated funds are no different than other types of investment funds. Like mutual funds for instance, segregated funds offer: • Low-cost professional money management • Instant diversification • Low minimum investment requirements • A wide variety of investments choices • A choice of risk levels However, because segregated funds are offered by life insurance companies (as opposed to investment firms), they offer additional benefits that can protect your money and minimize taxes. Since segregated funds are an insurance product, their assets may, under insurance law, be protected from seizure by creditors if certain conditions are met. The conditions include naming your spouse, child, grandchild or parent as your beneficiary. If you name a beneficiary other than your estate, the proceeds of your Segregated Funds may be paid out
