Deciding to put savings aside on a regular basis is the first step in achieving financial security. The next step is to decide which type of investment option is most suitable for your savings. While GICs and mutual funds may be good options, it might surprise you to know that insurance companies can offer similar products, but with unique benefits that are not available through your bank.
For instance, here are some advantages of choosing an investment policy offered by Equitable Life:
Advice from an independent financial advisor:
Your independent financial advisor will meet with you to help you understand your investment options and provide you with personalized financial advice. Unlike a bank, financial advisors who offer our products have a wide variety of companies and investment choices to choose from, and will carefully consider the suitability of a product based on your needs and individual financial goals.
Products with built-in guarantees:
Segregated funds: Segregated funds can be a great way to diversify your investments options. While similar to mutual funds, they are unique in that they can provide a maturity guarantee as well as a death benefit guarantee ranging from 75% - 100% of your contributions (minus withdrawals). This provides a level of principle protection regardless of market fluctuations.
Guaranteed Interest Accounts (GIAs): Our GIAs provide security of principal and a guaranteed interest rate. They are available for terms between 1 – 15 years and are cashable at any time. A market value adjustment may be required if cashed before expiry of the term.
Payout Annuities: Payout Annuities are exclusively offered by insurance companies and are not available at your bank. A payout annuity guarantees a set amount of periodic income in exchange for a lump sum investment. You choose whether the guaranteed income is for a specific number of years or for the remainder of your life. No matter what happens to the markets or interest rates, your income payments will not change.
If you name a beneficiary that is not your estate, the proceeds of the policy are paid directly to the beneficiary. The proceeds would not be included in your estate assets and would not be subject to probate fees.
Potential creditor protection:
This is an attractive feature for professionals and small business owners who wish to shelter personal assets from professional liability. In the event that you declare bankruptcy, assets that are invested in Segregated Funds or Guaranteed Interest Account may be protected from seizure if you have named a family class beneficiary, such as your spouse or child. The family class beneficiary designation requirements vary in some provinces. Your financial advisors will be able to assist you with your beneficiary designation.
Equitable Life has a complete range of investment and annuity products that offer protection and benefits that cannot be offered at a bank. Speak to your financial advisor today and learn how an Equitable Life investment policy can be incorporated into your personalized financial plan.