Also called “segregated fund”, a Guaranteed Investment Fund (GIF) is an investment fund created and issued exclusively by life insurance companies. It is offered through contracts that offer maturity and death benefit guarantees.The GIF may be non-registered or registered (eligible for RRSP, TFSA, RRIF, LIRA or LIF) and it allows you to diversify your investments while protecting your capital.
Advantages of Guaranteed Investment Funds (GIF)
- They offer guaranteed investments.
- They allow you to benefit from potential market growth but protect your investments if markets fall.
- They offer great flexibility, since you can access your money at any time at market value, after deducting redemption fees.
- In case of death, they ensure that guaranteed amounts are paid out quickly to your beneficiaries.
- Because they are considered as annuity contracts, Guaranteed Investment Funds contracts benefit from Assuris protection in case of financial failure by the issuing insurance company.