RESP vs. Child Plan How to set your child up for success in education and life

As Canada's fastest growing alternative to RESPs, Child Plan gives your child the freedom to succeed at life’s biggest milestones without government restrictions and costly fees.

Why consider an alternative to the RESP?

The RESP is a government program that was established decades ago to help your grandparents save for your parents education and hasn’t adapted to the educational needs of children in the 21st century. RESPs place restrictions on what schools your children can attend, what they can study and what you can do with the money you’ve saved. Child Plan gives your child unlimited options to get the education they need to pursue their goals and succeed in life.

Can my child attend any university, college or trade school in Canada or abroad?

While the RESP limits your child’s education choices to universities and programs on the government’s pre-approved list, Child Plan has no restrictions on where or what your child can study, both at home or anywhere else in the world.

What happens if my child chooses not to pursue a post-secondary education?

The RESP is limited to education purposes only and must be closed (and the grants returned) if your child doesn’t pursue a government approved education after high school. One of Child Plan's greatest benefits is the freedom to use it towards any of your child’s life goals, including buying their first house or starting their own business.

Are there any fees or restrictions to access my plan?

Depending on the RESP you have, it may come with sales fees as high as 90% and severe restrictions. With Child Plan, your child has complete access to the cash value without any fees or restrictions.

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
21
$82,568 (Education)
$612,728
35
$177,953 (House)
$899,621
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 illustration purposes. The dividend scale is not guaranteed, and values may differ.

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