Issue link: http://clhia.uberflip.com/i/405148
8 MANAGING YOUR CONTRACT 9 At time of purchase, you can choose from any of the segregated funds available within your contract. On an ongoing basis, you can change funds at any time. Switching from One Fund to Another Most segregated fund contracts permit you to switch from one segregated fund to another fund offered through the same contract without incurring sales charges or changing your guarantee levels. You may wish to consult your contract or advisor for details about your specific contract. Switches may have tax consequences, except when you hold your segregated fund contract in a registered account, such as an RRSP. Redeeming a Segregated Fund Investment One of the advantages of investing in segregated funds is their liquidity, or the ease with which they can be redeemed. Typically, you can redeem or surrender your contract for cash in full or in part at any time. Be aware that partial withdrawals affect the value of your guarantees. Your timing also has an impact on the amount you receive when you cash in. If your contract is redeemed at the maturity date or the death of the insured person, you or your beneficiary will receive the greater of: • The amount your contract guarantees; or • The market value of your investment less any withdrawal fees that may apply. In other words, the amount paid will not be less than the contractually guaranteed amount, and may be more if your investment has done well. You have no such certainty if you redeem all or part of your segregated fund investment earlier than the maturity date because the contractual guarantees do not apply to those withdrawals. You will simply receive the market value of the investment you are redeeming less any applicable fees, including any deferred sales charges. This may be more, or less, than the amount you originally invested, if the market value of the funds has increased or decreased.