Accumulation Annuities

Segregated Funds and GIAs

Investment products from life insurance companies offer unique features attractive to Canadian investors. Generally, there are two types of investment products known as accumulation annuities: segregated funds and term deposits called Guaranteed Interest Annuities (GIAs). Segregated funds and GIAs may be an important part of a financial plan as they can be held in an RRSP, allowing you to save for retirement.

Segregated funds are similar to mutual funds. They are pools of investors' money that may invest in stocks, bonds and money-market instruments, depending on the objectives of the segregated fund. These investment options are available on both a registered and non-registered basis.

Segregated funds offer two guarantees: a maturity guarantee and a death benefit guarantee. These are two unique features that may be of interest to conservative investors looking for a guarantee of protection. The maturity guarantee ensures a return of principal at a minimum percentage starting at 75% and up to 100% at some companies. The death benefit also guarantees a minimum of 75% or more of the original principal on the investor's death to be returned to the beneficiaries.

Additionally, both segregated funds and GIAs also offer investors potential creditor protection, unique to insurance company products. In certain circumstances, being creditor protected is an important consideration when planning for the future security of your family.

Insurance company products fall under different legislation than other traditional investment products you may be familiar with. As a result, they may have certain attributes like possible creditor protection, under certain conditions. Your professional legal advisor will be able to counsel you concerning your personal circumstances.

Investments like segregated funds and GIAs can be used to provide security and protection for your family. A life licensed Investment Advisor can advise you on which investments will help you to meet your goals.

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

Segregated funds may guarantee up to 100% of your initial investment at maturity (minimum ten years from issue) or immediately upon the death of the annuitant. Past performance of a segregated fund is not indicative of future performance. Please read the Information Folder carefully before investing.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.

Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc.