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Could Your Retirement Plans Be Jeopardized Because of The Cost of Your Child’s Post Secondary Education?

If you’re like many Canadian families, the realities of retirement may be causing a full scale panic, especially if you have university age children. A Leger Marketing survey discovered that:

  • A surprising 92% of parents with children under the age of 18 were concerned that their retirement savings plan could be derailed.
  • 29% of parents with children under the age of 18 are concerned that their own retirement could be derailed by their children’s post-secondary education costs.

Families have every right to be concerned. According to the Canadian Centre for Policy Alternatives:

  • Average fees, in current dollars, have increased from $1,464 in 1990-91 to $6,348 in 2012-13.
  • They are expected to climb to $7,437 in 2016-17.

According to the Association of Universities and Colleges of Canada (AUCC), enrolment at post-secondary schools is at an all-time high; a ringing endorsement as to the importance of a post-secondary education in today’s global marketplace. Since 2000 the number of full-time undergraduate students in Canada has grown by nearly 44%. The federal government estimates that 75% of new jobs in the coming decade will require post-secondary education. Who has been paying for all of these university degrees? You and I! In February, the federal government wrote off $231 million in unpaid student loans from more than 44,000 cases, which means that taxpayers are footing the bill for more than half a billion in uncollected student debt over the past few years.

Who is going to foot the bill for your child’s post-secondary education? Will you have to jeopardize your retirement savings to ensure that your child acquires the necessary skills to succeed in life? There are other ways to pay for a college education without resorting to your retirement fund or student loans. Insurance for Children has created Child Plan™ Education Achiever so that parents can help their children follow their dreams and achieve their goals in life. Contact us today and let us show you how.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $250 per month

Age Accumulated Cash Value Life Insurance Value
20 $82,568 (Education) $612,728
35 $177,953 (House) $1,115,297
45 $303,299 (Security) $1,115,297
65 $834,276 (Retirement) $1,666,824

Sample illustration is based on a monthly contribution of $8.32 a day/$250 a month for twenty years, starting when the child is less than 1 years old. Cash and life insurance values are based on the current dividend interest rate of 6% from a Canadian life insurance company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

Personalize Your Child Plan™

Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

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*illustrations are reflective of the annual premium amount

Have a question about Child Plan or wish to speak with a Family Advisor?