Beyond RESPs: Saving For Children and Grandchildren

resp, education, college, university, student debt, tuition, planningBeyond the RESP: Saving for the future for our children and grandchildren

Saving for the future for children and grandchildren? Have you considered the idea of adding a participating or universal life insurance policy as well as a Registered Education Savings Plan?

RESPs are a good start, but will they be enough and will they provide enough flexibility?

Participating life insurance is a great complement to Registered Education Savings Plans (RESPs). It provides life insurance protection for children or grand children, and a cash value component that can grow and be accessed to afford them more opportunities in life.

Most people consider life insurance only from the perspective of a death benefit. It is always best to round out a full financial security plan with life insurance early in life, and with certain options, to ensure their future insurability. However the access to cash component of life insurance is another benefit to them for the future.


An asset for the futureresp, education, college, university, student debt, tuition

Setting up a participating policy for children or grandchildren can provide much needed access to cash, not only for education purposes, but for later in life when they are starting out in their first home, or purchasing their first vehicle. No matter what the need, the savings component of a participating policy can provide access to cash at a time when they may need it most.

  • Participating life insurance provides permanent life insurance protection with guaranteed cash value growth, the opportunity to earn policy owner dividends and a growing life insurance benefit.
  • Unlike assets that may be exposed to market volatility, once credited to the policy, the cash value including policy owner dividends will not go down.
  • While cash value is growing inside the policy, you’re not subject to tax on the growth within prescribed limits.
  • This cash value can be accessed once or several times during the insured person’s lifetime.


Future Insurability

The guaranteed insurability benefit option may be added to a participating policy, to offer the insured an opportunity to have further insurance, regardless of their health and lifestyle.


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If you would like to know more about life insurance for your children and grandchildren, please don’t hesitate to contact us via the form below:


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