Segregated Fund Investments — Grow Wealth With Protection Banks Can’t Offer.
Every Daya investment account — TFSA, RRSP, RESP, FHSA, RDSP and non-registered — is held inside a segregated fund contract issued by a Canadian life insurance carrier, never a bank. That means market growth with 75–100% principal guarantees, the ability to bypass probate with a named beneficiary, potential creditor protection, and full access to every government grant — set up by LLQP (Life Licence Qualification Program) licensed advisors.
Figures reflect current federal program limits as of June 2026 and may change. Segregated fund guarantees (typically 75–100% of deposits) vary by carrier and contract. General information only — not financial, tax, or legal advice.
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By Daya Insurance
The Foundation
All Investments at Daya Insurance Are Segregated Funds.
Every account we offer — TFSA, RRSP, RESP, FHSA, RDSP and non-registered — is held inside a segregated fund contract issued by a Canadian life insurance carrier. Segregated funds are not mutual funds, ETFs, or bank products. They are insurance contracts that hold investments — and that distinction carries protections a bank account simply cannot.
What is a segregated fund?
A segregated fund is an investment contract issued by a Canadian life insurance company — not a bank or mutual-fund dealer.
It holds underlying investments — stocks, bonds, or a mix — like a mutual fund, but the contract is regulated under insurance law, not securities law.
Because it is an insurance contract, it carries protections and features no bank investment account can provide.
Segregated funds can only be sold by advisors holding an LLQP (Life Licence Qualification Program) licence — the licence Daya holds across 6 provinces.
Why segregated funds — not mutual funds or ETFs?
Mutual funds and ETFs are investment products only — market risk, no guarantees, no insurance protections.
Segregated funds add death-benefit and maturity guarantees — your deposits are protected even if markets fall at the wrong time (guarantee levels vary by contract).
They let you name a beneficiary directly on the contract — bypassing probate and passing assets to your family privately and quickly.
With a named beneficiary, seg-fund assets may be protected from creditors — valuable for self-employed Canadians and business owners.
The Segregated Fund Advantage
What Segregated Funds Offer That Bank Products Cannot.
These features are built into the segregated fund contract — the reasons Canadian families who want growth with protection choose them over bank investments.
Death Benefit Guarantee
If the annuitant passes away, the contract pays the greater of current market value or the guaranteed amount — typically 75–100% of deposits, depending on the contract — so your family is protected from a market downturn at the worst possible moment.
Maturity Guarantee
At the maturity date (often 10 years from deposit), the carrier guarantees a minimum of 75–100% of your deposits, depending on the contract. Markets up, you get full value; markets down, the guarantee is your floor. A guarantee reset feature is offered by select carriers only — confirm whether it applies to any product recommended to you.
Named Beneficiary — Bypass Probate
Name a beneficiary directly on the contract and the proceeds pass outside your estate — avoiding probate, with faster access for your family, no estate-administration fees on that asset, and complete privacy. In higher-probate provinces this can save thousands.
Potential Creditor Protection
When a family-class beneficiary is named, seg-fund assets may be shielded from creditors — a meaningful advantage for self-employed Canadians and business owners. Protection is not absolute and depends on circumstances; confirm with a legal advisor.
All Government Grants Accessible
Every grant your account qualifies for — CESG on RESPs, the Canada Disability Savings Grant and Bond on RDSPs — flows into your seg-fund contract exactly as it would at a bank, with the seg-fund protections layered on top.
LLQP Licensed Advice
Segregated funds can only be recommended by LLQP-licensed advisors. Daya holds active LLQP licences across 6 provinces and compares seg-fund products from multiple carriers side by side — so you choose the product that fits your goals, not the one that pays the most.
Six Accounts, One Structure
Choose the Account That Fits Your Goal.
Every account below is offered at Daya through a segregated fund contract from a Canadian insurance carrier — so each one carries the seg-fund protections on top of its own tax advantages. Many families hold more than one.
Education Savings
RESP — Education Savings Plan
An RESP turns your education savings into government-matched savings. Through the Canada Education Savings Grant (CESG), Ottawa adds 20% on the first $2,500 you contribute each year — up to $500 per year and a lifetime maximum of $7,200 per child. Lower- and modest-income families can also receive the Canada Learning Bond — up to $2,000 with no contribution required — plus provincial incentives in British Columbia and Quebec. The lifetime contribution limit is $50,000 per beneficiary, and your money grows tax-deferred. When your child enrols in college, university, an apprenticeship, or another qualifying program, the grants and growth are paid out as Educational Assistance Payments — taxed in the student's hands, usually at little or no tax. You can open an individual plan for one child or a family plan that lets siblings share grants and growth. If a child doesn't pursue post-secondary education, much of the plan can still be recovered, though grant money is returned to the government and growth may be taxed. Held inside a segregated fund contract from a Canadian insurance carrier, your RESP carries the seg-fund protections on top of the grants: a death-benefit guarantee that protects your deposits if markets fall, and a named beneficiary so the plan keeps working for your child even if something happens to you. The earlier you start, the more the 20% match and tax-deferred compounding can do. Best for: parents and grandparents saving for a child's post-secondary education.
The TFSA is the most flexible tax shelter in Canada. You contribute after-tax dollars, every dollar of growth — interest, dividends, capital gains — is permanently tax-free, and withdrawals are tax-free at any time, for any reason. The 2026 annual contribution limit is $7,000, and unused room carries forward indefinitely; a Canadian who was 18 or older in 2009 and has never contributed has up to $109,000 of room in 2026. Whatever you withdraw is added back to your room the following January, so the account refills itself over time. Because there's no tax on withdrawals and no clawback of income-tested benefits like Old Age Security, the TFSA is as useful in retirement as it is for an emergency fund or a medium-term goal. Held inside a segregated fund contract, your TFSA gains two things a bank TFSA can't offer: a named beneficiary or successor holder so the account passes outside your estate and bypasses probate, and a death-benefit guarantee that protects your deposits from a downturn at the wrong moment. For families with substantial tax-free savings, that estate-planning efficiency can be worth far more than the small difference in cost. The TFSA also pairs naturally with an RRSP or FHSA — many Canadians use the RRSP or FHSA for the up-front deduction and the TFSA for flexible, tax-free growth on top. Best for: an emergency fund, medium-term savings, tax-free retirement income, and anyone who wants access without tax consequences.
The RRSP is the workhorse of Canadian retirement saving — and one of the most powerful tax tools for higher-income earners. Every dollar you contribute is deductible against your income, so a contribution at a 40% marginal rate effectively costs you 60 cents. Your investments grow tax-deferred, and you pay tax only when you withdraw — ideally in retirement, at a lower rate. Your 2026 contribution room is 18% of your 2025 earned income, up to a dollar limit of $33,810, plus any unused room carried forward indefinitely. The RRSP also funds two tax-free programs: the Home Buyers' Plan lets first-time buyers withdraw up to $60,000 toward a first home, and the Lifelong Learning Plan funds education — both repaid to the plan over time. A spousal RRSP lets a higher earner build the lower-earning spouse's retirement savings so future withdrawals are taxed in the lower-income hands — a clean income-splitting strategy. Held inside a segregated fund contract, your RRSP — often your single largest asset — gains a named beneficiary so it passes directly to your spouse or family and bypasses probate, plus a death-benefit guarantee on your deposits. RRSP assets also carry strong creditor protection, which matters for self-employed Canadians and business owners. At Daya we compare seg-fund RRSP options across multiple carriers so the guarantee level, fund line-up, and fees fit your retirement plan. Best for: high-income earners, long-term retirement savings, first-home buyers, and couples using spousal income-splitting.
The First Home Savings Account is Canada's newest registered account, and for most first-time buyers it's the best of both worlds: contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home are completely tax-free like a TFSA — including all the growth. You can contribute up to $8,000 per year, to a lifetime maximum of $40,000, and unused annual room (up to $8,000) carries forward once you've opened the account. You don't repay an FHSA withdrawal the way you do under the RRSP Home Buyers' Plan — and you can use both the FHSA and the HBP together, putting up to $100,000 toward the same first home. To open one you must be a Canadian resident, at least 18, and a first-time buyer who hasn't lived in a home you owned in the current or prior four calendar years. Couples can each open their own FHSA and combine withdrawals. If you ultimately don't buy a home, the balance can roll into your RRSP or RRIF without using RRSP room. Held inside a segregated fund contract, your FHSA adds a death-benefit guarantee on your down-payment savings and a named beneficiary so the account passes outside your estate. Because the saving window is shorter than retirement, the seg-fund guarantee can be especially reassuring if your purchase lands during a market dip. Best for: first-time home buyers who want a tax deduction now and tax-free money for a down payment later.
The RDSP is the most generous savings plan the federal government offers — built for Canadians who qualify for the Disability Tax Credit. Through the Canada Disability Savings Grant, Ottawa matches contributions at up to 300%, to a maximum of $3,500 a year and $70,000 over the beneficiary's lifetime. Through the Canada Disability Savings Bond, lower-income beneficiaries can receive up to $1,000 a year — with no contribution required — to a lifetime maximum of $20,000. Together that's up to $90,000 in government money on top of your own contributions, which can reach a lifetime limit of $200,000. Unused grant and bond entitlements carry forward up to 10 years, so opening a plan after a retroactive DTC approval can trigger a substantial catch-up payment. Growth is tax-deferred, and RDSP assets don't affect most income-tested provincial disability benefits. Withdrawals are designed for the long term: taking money out within 10 years of the last grant or bond can trigger repayment, so the plan rewards patience. Held inside a segregated fund contract, the RDSP adds a death-benefit guarantee and a named beneficiary structure — and an advisor who understands how the plan interacts with provincial benefits and estate planning. Because the rules are intricate — DTC eligibility, the 10-year holdback, carry-forward, and beneficiary structure — this is an account where licensed advice genuinely pays off. Best for: families building long-term financial security for a person with a disability who qualifies for the Disability Tax Credit.
When you've used up your registered room — or you need flexibility a registered account can't give you — a non-registered segregated fund account lets you keep investing with the full suite of seg-fund protections. There's no contribution limit and no withdrawal restriction: you invest as much as you want, whenever you want. What makes the seg-fund version different from a bank's non-registered account is what happens at death. A regular non-registered investment account has no beneficiary designation — it forms part of your estate and goes through probate, which is public, slow, and can cost thousands in higher-fee provinces. A non-registered segregated fund lets you name a beneficiary directly on the insurance contract, so the proceeds pass privately and quickly, outside your estate. You also get the death-benefit guarantee, the maturity guarantee, and — when a family-class beneficiary is named — potential creditor protection, which is valuable for incorporated professionals and business owners. That combination makes non-registered seg funds a quiet workhorse of estate planning: a way to hold surplus savings, business proceeds, or an inheritance with growth potential and a clean, private transfer to the next generation. Returns aren't guaranteed and the underlying funds carry market risk, but the protections and the probate bypass are built into the contract. Best for: savings beyond registered limits, estate planning, incorporated professionals, and business owners who want growth with creditor and probate protection.
Every account below is held in a segregated fund contract from a Canadian insurance carrier — so each one also carries a named beneficiary, probate bypass, and the seg-fund guarantees on top of its own tax rules.
Swipe the table sideways to see every account →
Feature
RESP
TFSA
RRSP
FHSA
RDSP
Non-Reg
Primary purpose
Child's education
Flexible tax-free saving
Retirement + tax relief
First home
Disability long-term security
Beyond registered limits
2026 annual limit
No cap (grant on first $2,500)
$7,000
18% of income, max $33,810
$8,000
No annual cap
No limit
Lifetime limit
$50,000 / child
$109,000 (since 2009)
No lifetime cap
$40,000
$200,000
None
Contributions deductible?
No
No
Yes
Yes
No
No
Growth
Tax-deferred
Tax-free
Tax-deferred
Tax-free
Tax-deferred
Taxable yearly
Withdrawals
Taxed in student's hands
Tax-free, anytime
Taxed as income
Tax-free (first home)
Growth + grants taxable
Gains taxable
Government money
CESG to $7,200 + CLB to $2,000
None
None
None
Grant + bond to $90,000
None
Carry-forward room
Grant room to age 17
Indefinite
Indefinite
$8,000/yr after opening
Up to 10 years
n/a
Name a beneficiary, bypass probate
Yes
Yes
Yes
Yes
Yes (via plan)
Yes — bank non-reg can't
Potential creditor protection
Possible
Possible
Strong
Possible
Possible
Possible
Best withdrawal use
Tuition + education costs
Anything, anytime
Retirement income
First-home down payment
Long-term disability support
Flexible / estate planning
Recommended for
Parents + grandparents saving for school
Everyone — flexible core account
High earners + retirement savers
First-time home buyers
DTC-eligible families
Maxed registered room, estate planning
How to read this: Daya Insurance is an independent brokerage — we compare segregated fund products across multiple Canadian carriers and recommend the account and carrier that fit your goals, not the one that pays the most. Figures reflect current federal program limits as of June 2026 and may change; segregated fund guarantees vary by carrier and contract. This table is general information, not financial, tax, or legal advice. Your own situation — income, timeline, family, and tax bracket — determines the right mix, and many families use more than one account together. Contribution limits and program rules are published by the Government of Canada: TFSA, RRSP limits, RESP and education savings, and RDSP. Always confirm your personal room in CRA My Account.
Questions, Answered
Segregated Fund FAQs.
The questions Canadian families ask most about investing through segregated funds.
Are segregated funds the same as mutual funds?
No — they are fundamentally different products, even though they can hold similar underlying investments like stocks and bonds. A segregated fund is an insurance contract issued by a Canadian life insurance company, governed by provincial insurance law; a mutual fund is a securities product governed by securities law. That structural difference is what gives segregated funds their protections: a death-benefit guarantee, a maturity guarantee, the ability to name a beneficiary directly on the contract (bypassing probate, even on non-registered accounts), potential creditor protection when a family-class beneficiary is named, and the backing of Assuris if the issuing carrier becomes insolvent. Mutual funds offer none of these insurance-based protections. If you want growth at the lowest possible cost, a mutual fund or ETF may be the right tool; if you also value estate efficiency, creditor protection, or guaranteed minimums for your family, segregated funds provide protections that don't exist in the securities world.
Are investment returns guaranteed with segregated funds?
No — returns are not guaranteed. The underlying investments participate in the market, so values rise and fall. What is guaranteed is the death benefit and the maturity guarantee — typically 75% to 100% of deposits, depending on the contract. If you invest $100,000 and markets fall to $60,000 at the 10-year maturity date, a 75% guarantee means you receive at least $75,000; if markets rise to $140,000, you receive the full market value. The guarantee puts a floor under the worst case — it does not cap the upside. Always review the Fund Facts and Information Folder to understand the specific guarantees and fees before investing.
Can I name a beneficiary on a TFSA or RRSP at a bank?
Yes — registered accounts like TFSAs and RRSPs allow beneficiary designations at a bank, and those bypass probate. But a non-registered investment account at a bank does not allow a direct beneficiary designation — those assets form part of your estate and go through probate. With a segregated fund held in a non-registered account, you can name a beneficiary directly on the insurance contract, bypassing probate even for non-registered savings. For families with substantial non-registered savings, that is one of the most significant estate-planning advantages of segregated funds.
Are segregated funds more expensive than mutual funds?
Generally yes — segregated funds carry a higher management expense ratio (MER) than comparable mutual funds, and well above index ETFs. The extra cost reflects the insurance guarantees built into the contract and the reserves that back them. Whether that cost is worth it depends on your situation. For a young investor with a long horizon, no dependants, and no creditor or estate complexity, lower-cost products may be more efficient. For a self-employed professional worried about creditor protection, an owner who wants non-registered money to bypass probate, a retiree who wants a guaranteed floor, or a family planning around a disability, the protections can represent genuine value that outweighs the incremental MER. At Daya we never recommend a product based on its compensation — we show you the fees clearly, explain what they buy, and let you decide.
Which insurance carriers does Daya Insurance work with for segregated funds?
Daya is an independent advisor — not tied to any single carrier — and works with multiple Canadian insurers that offer segregated fund contracts, including major carriers such as Manulife, Canada Life, Empire Life, and iA Financial Group, among others, depending on the account type, province, and your financial profile. Being independent means our recommendation is driven by which product fits you best: the guarantee percentage (75% or 100%), the range and quality of funds inside the contract, the MER, whether a guarantee-reset option is available (offered by only a select number of carriers), and the overall contract structure. Clients in Ontario, BC, Alberta, Manitoba, Saskatchewan, and Nova Scotia all have access to this independent multi-carrier comparison.
What's the difference between a TFSA and an RRSP?
Both are registered accounts that shelter growth from tax, but they run in opposite directions. A TFSA is funded with after-tax dollars — no deduction going in, but all growth and every withdrawal come out tax-free, and any amount you withdraw is added back to your contribution room the next calendar year. An RRSP is the mirror image: contributions are tax-deductible now, but withdrawals are fully taxable later — the idea being you contribute in higher-earning years and draw down in retirement at a lower rate. Rule of thumb: a TFSA often wins when your tax rate is lower today or you want flexible access; an RRSP often wins when you're in a high bracket now and expect a lower one in retirement. Many families use both. Contribution room is governed by CRA rules and changes each year, so we confirm your current available room before recommending where a dollar goes first.
Can I hold segregated funds inside a registered account like an RRSP or TFSA?
Yes — segregated funds are the investment inside the account, not the account itself, so the same contract can sit in an RRSP, TFSA, RESP, RRIF, or a non-registered account. Inside a registered account you keep that account's tax treatment (tax-free growth in a TFSA, tax-deferred in an RRSP) and add the seg fund's insurance features: the death-benefit and maturity guarantees that put a floor under the contract, and — when a family-class beneficiary is named — potential creditor protection. One point worth being clear about: naming a beneficiary to bypass probate is something you already get on a registered account at a bank in most provinces, so that particular advantage matters most for non-registered savings, where a regular investment account can't name a beneficiary but a seg fund contract can. Which account, guarantee level, and carrier fit best is the comparison an independent advisor runs for you.
Do I need an advisor to open an RRSP or TFSA, or can I do it myself?
You can open a basic registered account yourself at any bank or brokerage, and for a simple goal that may be all you need. Where an advisor earns their place is the decisions around the account: which to fund first for your tax situation, how much room you actually have, whether a guaranteed or insurance-based product belongs alongside a low-cost one, how to name beneficiaries so money bypasses probate, and how it all fits across a whole family. As an independent, LLQP-licensed advisor, Daya isn't tied to one institution's shelf — we compare across multiple Canadian carriers and recommend what fits you, not what one bank sells. There's no cost or obligation to that conversation.
Why Daya
Why an Insurance Advisor, Not a Bank.
Segregated funds are only available through licensed insurance advisors — and how you buy them matters as much as which account you choose.
At a bank or fund dealer
One institution's own products — no comparison across carriers.
Mutual funds and GICs only — no segregated fund guarantees.
No named beneficiary on non-registered money — it goes through probate.
Staff sell that institution's funds; they don't compare the wider market.
At Daya — independent & LLQP-licensed
We compare segregated fund contracts across 15+ Canadian carriers — and recommend the fit, not the payout.
Every account carries the seg-fund guarantees, a named beneficiary, and probate bypass.
Honest fee disclosure, in your language, with no pressure to buy.
Whether you're opening an RESP for a newborn, building retirement savings, or planning around a disability, our LLQP-licensed advisors compare your options and set up the right segregated fund accounts. New to Canada on a Super Visa or visitor stay? We also help with visitor & Super Visa insurance. Learn more about Daya Insurance or request a free quote.
Free Consultation
Start Growing Your Wealth — With Protection Built In.
Compare segregated fund investments across 15+ Canadian carriers with zero obligation. Our LLQP-licensed advisors help you choose the right accounts — TFSA, RRSP, RESP, FHSA, RDSP or non-registered — and set them up to protect your capital while it grows.
Daya Insurance is an independent brokerage of LLQP (Life Licence Qualification Program) licensed advisors with 20 years of combined experience helping Canadian families across 6 provinces. We set up segregated fund investments — TFSA, RRSP, RESP, FHSA, RDSP and non-registered — issued by Canadian life insurance carriers, and we also advise on life insurance, living benefits, and Super Visa & visitor insurance, with cultural fluency in English, Punjabi, Hindi, and Gujarati. As an independent brokerage we compare 15+ Canadian carriers to find the fit that genuinely serves your family, not the one that pays us most.
