As with any investment, a segregated fund should have a specific job within the portfolio. If you are concerned with losing your savings to stock market declines, need an estate planning solution, protection from creditors, etc. then segregated funds may provide the solution.
Your Investment Policy Statement (IPS) should identify the investment need and the parameters for addressing the need. If this is the case, then segregated funds may be the right option for the job.
If the investment’s job is purely an investment without the need of insurance protection, then an investor may be better served by using mutual funds, common shares, Exchange-Traded Funds (ETFs) as an investment. These investment options would have lower investment costs.