Cost vs. Benefit

Here's a real-life case that we think you’ll find interesting.

A client had purchased a segregated fund with $100,000 and 100% death benefit guarantee. A couple of years later, the market value was $120,000 and the client reset the death benefit to $120,000. Not too long after, there was a market correction and the market value slipped to $105,000. Then, unfortunately, the client passed away.

We know the beneficiary will receive $120,000 because of the 100% death benefit guarantee combined with the reset feature.

Can you guess which question the beneficiary never asked?

If you said: “What was the cost of that investment?”, you would be right. Cost was of no importance because the beneficiary received $120,000 not $1