Segregated funds are actually a pretty interesting product. One very interesting thing is that these funds, if you bought them in good financial standing, can actually be saved in the event people run into creditor and liability issues.
So for example, if you go bankrupt and you were in good financial standing when you bought the segregated fund, if you named a close family beneficiary those creditors won't be able to seize that fund.
Segregated funds are insurance products essentially, and from what I have been taught, they're more suited for those who are concerned about what happens to their money once they pass away. Most segregated funds have death benefits and guarantee benefits. I believe they have a minimum standard for both of these benefits in terms of % payout, but the simple explanation would be even if you die, your beneficiary will receive either the market value of your segregated fund, or if the market has fallen below the guarantee value, you'll get that. Simple example, if you invest $10 and someone says we'll guarantee you market value or $7, whichever is higher. If your $10 is now worth $5 because of market conditions, you'd still get $7 on maturity or death. I also know that you can set new high points. So say you invest $10 and the value of your fund sits at $13. You can "lock in" that guarantee amount moving forward.
To be honest, these are pretty unique funds. Annuities are pretty rare these days, and I would say that segregated funds are even more of a rarity than annuities. I know of the funds, they dealt with them quite a bit in the CSC, but as someone who has never even remotely considered owning one because of my current situation, I'm far from an expert.
I do know they're funds for the risk averse who essentially want some sort of insurance protection on their money. But to figure out if they're right for your individual retirement portfolio, you'd likely need to contact an institution or firm that sells them.