Child Plan On Red

How Flexible is Child Plan™ vs. RESP?

The resp is a government program created in 1998 was designed to help parents save for their children’s future university education.

As a government program, the RESP has government mandated rules that every subscriber or parent must follow to be able to use the RESP.

Key RESP Rules:

  • That it can only be used for education purposes only and only for education related expenses.
  • The second is that in order for your child to use the funds you saved in the plan your child must select when they are 18, a school or program that the government of Canada has approved.
  • Your child can only have an RESP account until they finished their education or until the plan is 35 years old from when you opened it.
  • If your child doesn’t pick a path that qualifies them to use the RESP, you must close the RESP account, withdraw your deposits, return all the grants, and if there is any growth in the plan, you can’t withdraw it until they are at least 21 and you will be responsible to pay income tax on the growth plus another 20% penalty to the government.

Child Plan™ is a participating whole life insurance plan started in 1847. It’s a private savings plan that can be opened by a parent, grandparent, aunts or uncles.

  • Participating whole life plans have been used by parents to save for their children’s future and their education since 1847.
  • With a Child Plan™ participating whole life plan your child will receive a tax free annual dividend every year for life, not just to age 18.
  • Your Child Plan™ participating whole life plan has no restrictions or fees when your child chooses the education they’d like to pursue. And they can pursue any education program anywhere in the world not only Canada.

Child Plan™ participating whole life plan has no restrictions on what your child would like to do after they complete their education. They can use their Child Plan™ cash value to buy their first home in Canada or anywhere in the world.

Child Plan™ participating whole life plan doesn’t need to be closed if your child has a scholarship or chooses a different path. Child Plan™ has no restrictions and will provide your child an investment that gives them financial security for life.


Sample Child Plan™ illustration of cash and Insurance values for a child starting at age one

Accumulated Cash Value
Life Insurance Value
$82,568 (Education)
$177,953 (House)
$303,299 (Security)
$834,276 (Retirement)

Sample illustration is based on a monthly contribution of $250 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 5.2% 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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