Ideal Segregated Funds and Estate Planning

Estate Planning

What is a Death Benefit Guarantee?

A Death Benefit Guarantee is one of the benefits of a segregated fund that is equal to at least 75 per cent (and up to 100 per cent, depending on the contract) of premiums less previous withdrawals ¹. It protects the value of your investment if you die. It is paid to someone you name as a beneficiary or to your estate if you do not name one. The level of guarantee may be impacted by the age you are at the time you invest your first premium. The Death Benefit Guarantee applies if you die before the end of the contract. It pays the greater of: the contract value or the guaranteed amount as per the contract terms. Certain conditions apply.

Who is it for?

• Clients aged between 65-79 years
• Clients who opened an Ideal Segregated Funds — Signature Series contract
• Clients who want to invest a minimum of : $1,000 for non-registered plans and $10,000 for registered retirement income plans

Ideal Segregated Funds — Signature Series’ guarantees are a great estate planning tool.

Why is estate planning important?

Because:

• Client’s beneficiaries will receive 100% Death Benefit Guarantee on current and future payments within the same series. (First premium payment to the series has to be made before age 80)
• There is no equity cap and premium payments after age 80 are allowed for Ideal 75/100 and Ideal 100/100 Series

Case study: Jane Rogers, Age 75

Invests $100,000 into a Standard Life Ideal Segregated Funds — Signature Series contract.

At age 84 she sells her home and decides to invest $100,000 of the proceeds into her existing Ideal Segregated Funds — Signature Series contract; this additional premium benefits from a 100% Death Benefit Guarantee.

At age 86, market turmoil makes her worried and she moves her mutual funds to her existing Ideal Segregated Funds — Signature Series contract. This additional premium payment also benefits from the same 100% Death Benefit Guarantee.

Benefits to the client:

• Peace of Mind: through Maturity and Death Benefit Guarantees* on their investments
• Make sure their legacy goes a long way: Ensure beneficiaries receive income payments instead of lump sum payments using our Gradual Inheritance concept
• Future Planning: Have a place to safeguard their funds when they downsize their home or receive an inheritance

Benefits to the advisor:

• Estate Planning Tool
• Account consolidation opportunities

·         Providing clients with increased flexibility and options

Policy Wording – Standard Life.

Ideal Segregated Funds and Estate Planning

Estate Planning, Standard Life