Segregated Funds
(Variable Annuities)

Description
Variable annuities, also known as segregated funds, are contracts between insurance companies and investors. They work similar to mutual funds and have added features, which insure and guarantee deposits at maturity and death.

Objective
To provide investors with the opportunity for market appreciation and the accumulation of wealth for retirement.

Suitability
Segregated funds are suited for individuals who are interested in long-term growth for purposes such as retirement planning. Self-employed individuals and the mature market are also ideal candidates for segregated funds because of the potential creditor protection and estate planning advantages.

Features

• Separate Account: Segregated Funds are not part of the general assets of the insurance companies. These are in separate client name accounts belonging to policyholders.
• Diversification: Segregated funds allow individuals to invest into professionally managed sub-accounts that best suit their investment needs.
• Guaranteed Death Benefit: Should the policyholder die, the beneficiary is guaranteed the amount originally invested, minus proportionate withdrawals. Some age limits may apply.
• Liquidity: Most segregated funds allow policyholders to withdraw up to 10% of the segregated funds value (up to 20% for retirement income plans) without penalty.
• Avoids Probate: Upon death proceeds are paid directly to named beneficiaries avoiding probate and other estate settlement costs.
• Penalties for early withdrawal: When purchased on a deferred sales charge basis there is a redemption fee that may apply.
• Market Value Fluctuation: The value of a segregated fund is subject to market value fluctuations.
  
  For more information, please contact your Edward Jones financial advisor*.

Insurance and annuities are offered by Edward Jones Insurance Agency (except in Quebec). In Quebec, insurance and annuities are offered by Edward Jones Insurance Agency (Quebec) Inc.