What is the difference between a segregated fund's maturity guarantee and its death benefit guarantee?

A segregated fund is structured as an insurance contract, and it typically comes with two separate guarantees that apply in different situations. The maturity guarantee protects a portion of your original deposits if you hold the contract until its stated maturity date and the fund's market value has dropped below that guaranteed level by then. It's tied to a specific date written into the contract, not to your death. The death benefit guarantee, on the other hand, protects a portion of your deposits for your named beneficiary if you die while the contract is still in force, regardless of whether the maturity date has arrived yet.

The exact percentages guaranteed under each feature, and the specific conditions attached, such as reset options or minimum holding periods, vary by insurer and by product, so they should be confirmed directly from your contract or your advisor rather than assumed to be identical across products.

Because these are two distinct protections built into the same contract, it's worth understanding both when choosing a segregated fund, and reviewing your beneficiary designation alongside the death benefit guarantee as part of your broader estate plan.