All parents know there’s nothing more important than the safety and security of their children. Your top priority as a parent is protecting your little bundle of joy from any potential risks. You want to protect your child from physical, emotional, and psychological harm, but you also want to ensure they have financial security. Many parents forget this important piece of protection. But the reality is that life is expensive and unpredictable, so now’s the time to protect and prepare for your child’s future. The Child Plan™ is the best form of financial protection for your child due to its many advantages over other savings plans. Read on to discover all the benefits of the Child Plan.
What is the Child Plan™?
The Child Plan™ is a secure and tax-free savings plan. This plan can be opened as soon as 14 days after a child is born. Parents, grandparents or other relatives can initiate the Child Plan which provides the child with a yearly dividend for life. While many parents opt for an RESP, it’s more restrictive and lacks several of the benefits that the Child Plan offers.
Benefits of the Child Plan™
Most parents are familiar with the RESP (Registered Education Savings Plan) program that’s available through the Canadian government. It is better than having no plan but it has drawbacks. The Child Plan is much more advantageous when it comes to saving for your child’s future.
Use the Money When and How They Need
Unlike an RESP or traditional financial savings plan, the use of the money saved via the Child Plan isn’t restricted only to education. Your child or grandchild can spend the money on whatever it is that they need – tuition, a downpayment on a house, or to start a business. The money that you save now using the Child Plan ensures that your kids have a safety net for whatever life throws at them.
Continued Coverage After Parental Loss
Regardless of what happens to the parents, the child has a life insurance policy they can count on. Child Plan is a Participating Whole Life insurance plan that combines a tax-free education savings plan with permanent whole life insurance coverage for life. Your child will never need to apply for or buy life insurance ever again.
It’s More Than Insurance
When you invest in the Child Plan, you’re investing in your child’s future. Paying into the Child Plan not only provides whole life insurance for your child but it means your child receives an annual dividend for life. Holders of this participating whole-life plan are considered shareholders of the insurance company, and therefore receive profits. The cash value in the plan grows, tax-free, for the entire life of the child. You can transfer the plan to your child tax-free anytime after the age of 18.
Invest in Your Child’s Future Today
When you open a Child Plan, you’re protecting your child’s financial future and giving them a head-start on life. As the world changes and life becomes more expensive, you’ll have peace of mind that you helped prepare your bundle of joy for their journey, wherever it takes them. After just 20 years of payments, you will have set your child up for life with a completely-paid whole life insurance plan and a lifelong investment.
As Canada’s leader in financial planning for children, Child Plan™ is committed to helping parents and grandparents plan for their children’s futures. Children are the future, build a future for them you can be proud of.