Segregated funds are often compared to mutual funds - both are pools of investment assets managed by professional money managers that come in a wide range of funds designed to fit various investment objectives. If you look closer, though, you will find that the similarities end there. Segregated funds, which are available only from Life Insurance Companies, provide investors with a number of benefits like minimum guarantees on the maturity date of the policy or death of the annuitant.

Guaranteed Interest Annuities (GIAs) are interest bearing accounts offered by life insurance companies and are in many ways similar to Guaranteed Investment Certificates (GICs) - both offer guaranteed periodic interest, fixed maturity date, return of capital. However, because of its status as an insurance contract, there are some extra benefits accorded the owner of the policy.

In addition to the guarantees they offer, in some instances, segregated funds and GIAs also offer potential creditor protection and probate bypass opportunities that are not available with other investment funds.

All insurance products are sold through ScotiaMcLeod Financial Services Inc., the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank Group. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Quebec) representing ScotiaMcLeod Financial Services Inc.

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