O when market is rising daily resets enable contract

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o When market is rising, daily resets enable contract holders to continually lock in accumulated gains.
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o When market is falling, contract holders will be protected since the guarantee is based on previous high. -Death Benefits: for clients who want exposure to long-term asset classes while ensuring that their investments are protected in the event of death. Amount of death benefit is equal to the difference between the guaranteed amount and the net asset value of the fund at death. -Creditor Protection: segregated funds may offer protection from creditors in the event of bankruptcy. This is a valuable protection for clients whose personal or business circumstances make them vulnerable to court-ordered seizure of assets to recover debt. -Bypassing Probate: segregated funds can help clients avoid the costly probate fees levied on assets held in investment funds. Probate: the legal process of administering the estate of a deceased person. Segregated funds are not regarded as part of a deceased's estate . The proceeds of the fund go directly to beneficiaries. -Cost of the Guarantee: there are added costs to death benefits and maturity guarantees in addition to the fees incurred by mutual funds. -Bankruptcy and Family Law: segregated funds are not normally included in the property divided among creditors. Ex. Trustee cannot change the beneficiary to the creditors.
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- Taxation: Segrega ted Funds/Insurance Contracts are taxed as if they are trusts . The insurance company itself does not pay taxes on income earned by the fund.
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