Child Plan™ The Fastest RESP Alternative for Family Planning
We know that your child's future is incredibly important, and we want to help you formulate the right savings plan. There's a lot of information out there, and we want to provide you with unbiased facts.
Saving For Your Child's Future - Your Options
Registered Education Savings Plan (RESP)
Let's start with the Registered Education Savings Plan (RESP). Money placed in these investment accounts can grow tax-free. And with the Canada Education Savings Grant, the federal government contributes a 20% grant on RESP contributions up to $2,500 per year.
The RESP has been around since 1998 and is the most popular option for parents to save for their kids' education. But, there are legal and tax implications to using these accounts that you should understand. Well-intentioned and enthusiastic grandparents might be pushing this option because it's what they're used to, and that's fine. But as the savvy and open-minded parent that you are, you should consider all of the options on the table.
Other Investment Accounts
So what else is there? If you're looking for security but more flexibility, you can consider opening a non-registered account or a tax-free savings accounts (TFSA). A non-registered account is flexible and has no contribution limit or withdrawal limit. The downsides are that all the income is taxable along with any capital gains and the temptation to withdraw the funds for other expenses. A TFSA is a tax-free way to set money aside - income earned and withdrawals are tax-free. The downsides are that contributions can't be used to lower your taxable income, and there are no barriers to withdrawals (another temptation).
A trust is a legal agreement that transfers money from one person to another according to specific terms. With a trust, you can manage, control, and protect funds because the trustee has confidence that the money will be used for its intended purpose. You might consider a trust to make contributions beyond the RESP limits.
Life Insurance
Finally, there's life insurance. You can create a savings plan by building up and then tapping into the excess cash value within an insurance policy. The benefit here is that the growth accumulating within the policy is tax-deferred. The downside is that you don't have control over the money you put into the policy, and you will have to pay fees and commission. You'll want to look at policy illustrations that show how much the cash value of the policy will grow over time based on a guaranteed rate of return.
Child Plan
Child Plan is a life insurance plan that doubles as an education fund. Child Plan is a safe and secure tax-free savings plan that will provide your child with an annual tax-free dividend every year for life, which they have the freedom to use towards:
- Any education program around the world without restrictions
- Buying their first home
- Starting their own company, if that's their dream
- Financial freedom in life to follow their dreams

Sample illustration of Child Plan Cash and Insurance Values
Based on a Monthly Deposit of $250 per month
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.
Sample illustration of Child Plan Cash and Insurance Values
Based on a Monthly Deposit of $250 per month
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.
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.
*illustrations are reflective of the annual premium amount

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