A segregated fund is similar to a mutual fund, but generally has a death benefit guarantee, a maturity guarantee and is insured by Assuris up to $100,000.
Death guarantee: If you die before the maturity date (e.g. 10 years after the deposit) and the value of your investments is less than the amount invested, this guarantee will refund the difference.
Guarantee at maturity: This guarantee protects you at maturity (e.g. 10, 15 or 20 years after the deposit) for an amount varying between 75% and 100% of the invested amount. Segregated funds usually incur a higher cost than funds due to the cost of guarantees on death and maturity.