Education Savings Plan Options

Parents have 4 options when saving for their children’s education and future

RESP (Registered Education Savings Plan)

Government plan created in 1998 with regulations that are required to be met in order for your child to use the RESP for their education.
The government matches 20% (Canada Education Savings Grant) of whatever you deposit every year, up to a maximum annual Canada Education Savings Grant of $500.
You will only receive a CESG grant up to your child’s age 17.
The maximum amount CESG grant you will receive is $7,200 if you deposit $36,000.
Your child will need to attend a government approved school or program in order to qualify to use the Canada Education Savings Grants given by the government.
If your child doesn’t attend a government approved university, college or program or chooses another path, you will need to close the RESP account, return all the CESG grants given to you and pay income taxes on the growth plus a 20% penalty.
If your child does qualify to use the RESP for their education, they will need to pay income tax on any withdrawals.
Your child can only use the RESP for education purposes only.

Bank Savings Account or Investment Account

You can open a bank account or investment account in trust for your child’s future education.
You will be the trustee of the account until your child reaches age 18.
You are responsible for all investment decisions and any income taxes owed on interest or capital gains taxes on gains.
At age 18, the account ownership is transferred to your child and they can control and access their account for anything they wish without approval.

Participating Whole Life Insurance Plan – Child Plan™

Participating whole life plans were started in Canada in 1847.
Parents and grandparents can open a participating whole life plan for their children and grandchildren as early as 14 days old.
Owners of participating whole life plans receive a tax free annual dividend during the child or grandchild’s entire life.
Parents and grandparents can transfer the participating whole life plan to their children anytime after they are 18 years old.
There are no taxes to both the parents or the child when the participating whole life plan is transferred to the child for their education.
The child can use the participating whole plan cash value for any education they wish to pursue anywhere in the world without restrictions.
The cash value of a participating whole life plan is guaranteed for life and will grow tax free throughout the child’s life.
Your child can use the cash value for anything beyond education including buying a home or for any financial need in life.
Participating whole life plans include whole life insurance for your child’s future.

Request your personalized Child Plan™ illustration for your Child's future

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

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 $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.

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

Education Savings Plan Options

Parents have 4 options when saving for their children’s education and future

Request your personalized Child Plan™ illustration for your Child's future

Parent Information

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

Personalize Your Child Plan™