An investment account established by a life insurance company that’s kept separate from other funds and used to pay for pension plans and other life products with variable rates of return.
In the United States, a separate account provides security that allows investors to choose an investment vehicle according to their individual risk tolerance and desire for performance, particularly in the case of equities.
Privately managed by a brokerage or financial advisor, the same type of investment account is referred to as a ‘segregated account’ in Canada.