CLHIA-ACCAP - Consumer Information

Key facts about segregated fund contacts

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1 WHAT IS A SEGREGATED FUND CONTRACT? 1 A segregated fund is a type of investment fund available through a life insurance company. Companies keep these funds separate (or "segregated") from the general assets of the company so only investors in the funds have access to their value. Each consumer purchases a contract, called an Individual Variable Insurance Contract ("IVIC"), which we will refer to as a segregated fund contract, which, as further outlined in section 3, provides the consumer with certain contractual rights and benefits. The contributions or premiums that consumers make are invested in the segregated funds they choose. Typically, a segregated fund contract is designed to provide a regular income to you starting at a specified future date. Such incomes are called annuities, and your segregated fund contract may therefore also be called an annuity contract or a "deferred" annuity contract. Before the annuity becomes payable, you will be able to choose the type of annuity payment to receive and whether to receive the value of the contract as a single payment, rather than as a series of payments. Segregated fund contracts are issued by life insurance companies and are available only through advisors who are life-licensed.

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