What does the 'Reset' feature in a segregated fund contract allow the policyowner to do?

Question: What does the 'Reset' feature in a segregated fund contract allow the policyowner to do?

Answer options:

• The ability to change the beneficiary at any time.
• The ability to withdraw funds without paying a surrender fee. ✅ The ability to lock in market gains by increasing the guaranteed benefit amount.
• The ability to switch between different fund managers within the same contract.

Correct answer: The ability to lock in market gains by increasing the guaranteed benefit amount.

Explanation: The 'Reset' feature in a segregated fund allows the contract holder to 'lock in' investment gains. It resets the guaranteed amount (maturity and/or death benefit) to the current higher market value of the fund. This also usually restarts the 10-year clock for the maturity guarantee.