The insurance component remains a key competitive feature of insurers' segregated funds, according to the 2025 segregated fund comparison table compiled by InsuranceINTEL, the insurance product information centre of Insurance Journal Publishing Group (see subheading → Capital Protection Insurance).
Meanwhile, the range of investment options and registered savings vehicles continues to expand. In the fall, the investment fund industry enters a period that insiders call RRSP season, short for registered retirement savings plans. Providers are gearing up to take full advantage of the latest contributions before the end of February deadline.
The segregated fund sector is not to be outdone. In the latest industry developments in this sector, Empire Life launched a product that combines the benefits of the federal government's Registered Disability Savings Plan (RDSP) program with features of segregated funds, as reported by Insurance Portal on October 15, 2025. The article explains that Empire Life saw this as a market opportunity, given Statistics Canada data showing that the utilization rate of RDSPs was only 34.9% of eligible individuals in 2023.
It's worth the effort. Another article published in the October edition of the Insurance Journal points out that the lifetime contribution limit for an RDSP is $200,000. This includes amounts that can be transferred from an RRSP or Registered Retirement Income Fund (RRIF) belonging to a deceased parent, guardian, or grandparent.
Enthusiasm for ETFs
Canada Life launched a range of exchange-traded fund (ETF)-type segregated funds on Oct. 8, as published on the RADAR section of the Insurance Portal. Earlier this fall, the insurer launched three enhanced income equity segregated funds. It explains that each fund can use an actively managed covered call strategy, which involves holding one or more ETFs and selling call options on part of the ETF's exposure.
ETFs are very attractive to investors, and this sector is also sensitive to the RRSP season. National Bank of Canada Capital Markets reports a wave of ETF launches in its November 12 ETF Industry News Update. For example, CIBC launched three ETF portfolios on November 6. On October 22, LongPoint launched nine ETFs that take positions in individual stocks, including Canadian banks such as CIBC, NationalBank, and TD Bank.
Capital protection insurance
In addition to being an investment contract, a segregated fund is also an insurance contract. All insurers offer clients the choice between 70% or 100% coverage of the principal in the event of death. This will determine the amount that the beneficiaries designated in the segregated fund contract will receive.
The insurance component has other advantages. Among other things, the designated beneficiaries can quickly receive the amounts guaranteed in the segregated fund without having to go through the complexities of estate settlement.
Some insurers are more cautious when it comes to choosing a capital guarantee at the maturity of the segregated fund. Assumption Life, Manulife, Sun Life, and RBC Insurance only offer a 75% maturity guarantee. With most insurers, this guarantee only protects deposits made 15 years before maturity.
Affordable initial deposit
Manulife stands out with its Segregated Fund RESP, a product for which it does not require a minimum initial deposit from clients who apply for the Canada Learning Bond (CLB). The contract takes effect once the customer receives the CLB. On its website, Employment and Social Development Canada states that the CLB incentive can be up to $2,000 and is intended to help low-income families start saving early for their child's post-secondary education.
On the other hand, Manulife requires higher initial deposits for its other products. Its most accessible initial deposit is set at $1,000 for GIF Select - InvestmentPlus. Desjardins Insurance, Empire Life, and RBC Insurance have also set their minimum initial deposits at $1,000.
iA Financial Group, Co-operators, and Beneva are the most accessible, offering minimum initial deposits of $100, $250, and $400, respectively.
Assumption Life, BMO Insurance, Canada Life, Equitable, and Sun Life offer minimum initial deposits of $500.
