Registered investments qualify for annual tax-sheltered RRSP or TFSA contributions.
Segregated funds are made up of underlying assets that are purchased via the Life assurance companies.
In either case, the annuitant or their beneficiary will receive the greater of the guarantee or the investment’s current market value Granted certain qualifications are met, segregated fund investments may be protected from seizure from creditors.
This is an important feature for business owners or professionals whose assets may have a high exposure to creditors.
Creditor protection for Registered Education Savings Plans (RESPs) is generally not available, except in Alberta.
If the named beneficiary is a family member (such as a spouse, child, or parent), the investment may also be secure from creditors in case of bankruptcy.