FAQ – Grand Parents

Child Plan™ is a unique whole life insurance plan called “Participating Whole Life”.

Participating whole life is a tax-free investment parents and grandparents can open for children and grandchildren in Canada as early as 14 days after they’re born.

From the day parents and grandparents open a Child Plan™, their children and grandchildren will;

• Receive a tax-free annual dividend from the insurance company for life
• Have a guaranteed cash value plan they can access for any education, buy their first home or any financial need in life
• Have permanent whole life insurance for life to protect their future family
• Have a global plan they can use from anywhere in the world

To learn more about Child Plan™, click HERE and request a personalized Child Plan™ illustration

Yes! Child Plan™ is “Participating” whole life insurance plan. When you open a plan, your grandchild is the insured and the life insurance is intended to protect their future family.

However since your grandchild is under age 18 when the plan is opened, they are not permitted under law to sign the application and be listed as the owner.

As their grandparent, the life insurance company will permit a direct relative to open a plan for their grandchild, fund it and own it in trust for your grandchild’s future.

Child Plan™ is a tax free insurance trust because;

• Their plan will receive a tax free annual dividend for life
• Their cash value grows tax free for life
• You can assign ownership to your grandchild after they’re 18, tax free
• The life insurance will one day be paid to their future family tax free

To learn more about how Child Plan™ is a tax free trust for your grandchildren, click HERE and request a personalized Child Plan™ illustration.

Child Plan™ is a whole life insurance plan offered by the largest and oldest life insurance companies in Canada.

• Grandparents in Canada and those living outside Canada are allowed to open a whole life insurance plan for each grandchild as early as 14 days after their birth.
• As grandparents you own and hold the plan in trust for your grandchild’s future. 
• Grandparents submit the application on behalf of the grandchild, make the annual deposits and one day transfer ownership of the Child Plan™ to each of their  grandchildren tax free for their future. 
• Rather than wait twenty years to give them their gift for their future, grandparents want their grandchildren to begin building their wealth for their future as soon as they are born and “Participating” whole life plan is the only investment grandparents can set up for their grandchildren as early as 14 days after they’re born.

To learn more how Child Plan™ works for your grandchild’s future, click HERE and request a personalized ChildPlan illustration

“Participating” whole life insurance is a unique plan offered by the largest and oldest life insurance companies in Canada. Owners (policy holders) of a “Participating whole life plan are considered shareholders of the life insurance company and as shareholders they share in the profits of the insurance company; 

Participating whole life insurance plan owners; 

•  Receive a tax-free annual dividend for life
•  Have guaranteed cash value growing tax-free for life
• Have permanent lifelong life insurance to protect their future family and
• Can their cash value account within their plan for any education and financial need in life, from anywhere in the world.

To learn more about Participating whole life for your child’s future, click HERE and request a personalized Child Plan™ illustration

Child Plan™ can be opened by grandparents who want to set up an investment for their grandchildren’s futures as early as possible so they have it for their future. 

Whether it’s for their future education or to have the funds to be able to buy a home when they have their own family or just to give their grandchildren financial security in life. 

Opening a Child Plan™ for your grandchildren is a very simple process. 

The child’s grandparent submits an application on behalf of the child, answers the basic information, such as birth date, address, gender and medical questions, makes the deposits and when the child is over 18 and you believe your grandchild can responsibly manage their investment, you can transfer ownership of the Child Plan™ to each of your grandchildren. 

Once you transferred the Child Plan™ to your grandchild, they are now the legal owners of their investment.

To learn more about who can open a Child Plan™ for your grandchild’s future, click HERE and request a personalized Child Plan™ illustration

No. Child Plan™ is not a RESP (Registered Education Savings Plan). 

The RESP (Registered Education Savings Plan) is a government program overseen by CRA (Canada Revenue Agency) 

• The RESP is offered by banks and group RESP companies. 
• RESP can only be used by your grandchildren if they choose a Government approved post-secondary university, college or education program. 
• The RESP is for education only. The funds deposited to the RESP can only be used for education related expenses which must be approved by the RESP promoter, usually the bank advisor.
• RESP contributions are capped. Your grandchild’s RESP can only receive up to $50,000 by the time they are 18 and nothing more or you will be assessed a tax and penalty for overcontributing.
• The RESP receives a 20% matching government grant called the CESG, which is the Canada Education Savings Grant. The maximum CESG matching grant your grandchild’s RESP can receive is $7,200 if you deposited $36,000. That’s all their RESP will receive. This means any amount beyond $36,000 does not receive more CESG grants.
• Your grandchild’s RESP is for education purposes and education related expenes only. Nothing else and all expenses must be approved by the RESP promoter in order to access the account.
• Your grandchild’s RESP must be completely empty by year 35 after their RESP is set up.
• To access their RESP, your grandchild must submit a tuition receipt to the RESP promoter which is either the bank advisor or a group RESP company, who then looks up the educational institution your grandchild selects to determine if it qualifies to use the RESP for education.
• If your grandchild has a scholarship or chooses a different path thant the Government mandated path, they can’t use their RESP for any other purpose.
• Your grandchild’s RESP account will then need to be closed down, you can recover your contributions without taxes, the CESG grants will need to be returned to the Government and if there is any growth in your grandchild’s RESP, you can’t withdraw it until they are 21 years old, you will need to pay your income taxes on the growth withdrawn and there is an additional 20% penalty on the growth you will need to pay.

Child Plan™ is a “Participating” whole life insurance plan from a major Canadian life insurance company and a private investment grandparents in Canada can set up for their grandchildren’s futures whether for their education or to buy their first home. 

• Child Plan™ is not a Government mandated and managed program. It’s a grandparent’s private tax free investment for their grandchildren’s future.
• Child Plan™ is a “Participating” whole life insurance plan offered by the largest life insurance companies in Canada.  
• Your grandchildren can use their Child Plan™ for any post-secondary education including university, college or skills training program anywhere in the world without any restrictions. 
• Your grandchild’s Child Plan™ cash value can be used for any education related education, education related expenses and do not need to be approved by the life insurance company.
• While there is an RESP maximum contribution of $50,000, there is no maximum on how much you want to invest for your grandchildren’s futures.
• With a Child Plan™ you determine how much you want to invest for your grandchildren’s futures.
• While the RESP receives a 20% matching government grant called. The grant is only paid until your grandchild reaches age 18. With a Child Plan™ your grandchild will receive a tax free annual dividend for their entire life.
• While the RESP is for educational purposes only. Your grandchild can use their Child Plan™ to buy their first home, start a business one day and to provide their future family financial security.
• While your grandchild’s RESP must be completely empty by year 35 after their RESP is set up. Child Plan™ is for their entire life. That means their cash value will continue to grow for life.
• To access their RESP, your grandchild must submit a tuition receipt to the RESP promoter which is either the bank advisor or a group RESP company, who then looks up the educational institution your grandchild selects to determine if it qualifies to use the RESP for education.

Child Plan™ is a flexible plan that provides your grandchildren the freedom to 

• To choose any university or education program around the world at age 18  without Government restrictions 
• To buy their first home and for any other financial need in life, beyond education. 

• Child Plan™ is a whole life plan which will continue to grow after their education and for life.

To learn more about the differences between Child Plan™ and RESP for your child’s future, click HERE and request a personalized ChildPlan illustration

You can open a Child Plan™ for your grandchild as early as 14 days after they’re born.

You simply complete the application with standard information such as address, parents information and answer the medical questions on behalf of the grandchild and the plan is approved almost immediately and placed.

To learn more about Child Plan™ for your child’s future, click HERE and request a personalized ChildPlan illustration

Yes, Child Plan™ is a participating whole life plan you can open for each grandchild.

If you have more than one grandchild, you can open a Child Plan™ for each grandchild for their future education and life.

Each Child Plan™ is designed for each child individually and once you’re ready you can transfer the Child Plan™ directly to each of your grandchildren tax free and directly to their hands.

To learn more about opening a Child Plan™ for each grandchild, click HERE and request a personalized Child Plan™ illustration.

Yes, Child Plan™ is a whole life insurance plan from the largest life insurance companies in Canada. Once the plan is set up, your grandchild will have permanent whole life insurance which can never be changed or cancelled by the life insurance company, no matter their health or where they live in the world.

To learn more how your child can use their cash value in life, click HERE and request a personalized ChildPlan illustration

Yes, your grandchildren’s Child Plan™ is permanent and for their whole life. Child Plan™  continues growing for your grandchild’s entire life, no matter what path they choose when they grow up.

Child Plan™ annual dividends will continue to be deposited tax free into their Child Plan™ after age 18 and for life, the plan cash value will continue to grow tax free for life and the whole life insurance will continue growing for life to protect their future family.

To learn more about how your child can use their Child Plan™ if they choose a different path, click HERE and request a personalized ChildPlan illustration

No, your grandchild can access their Child Plan™ cash value for any financial need in life beyond education.

Your child’s Child Plan™ cash value grows tax free from the day you open it and for life.  Once you transfer your grandchild their Child Plan™ at any age after 18, they can access the cash value for any use in life like education, buying a home, starting a business or even as their own tax free retirement plan. 

Child Plan™ cash value can be accessed by

• Requesting the annual dividends be paid in cash
• Request a withdrawal from the cash value
• Borrow from the cash value
• Withdraw all the cash value
• Request a personal loan from their local bank of up to 90% of their total cash value.

To learn more how your child can use their cash value in life, click HERE and request a personalized ChildPlan illustration

Yes. Child Plan™ “Participating” whole life cash values grow from the day you open it for your grandchild’s entire life. 

When your grandchild reaches that age, begins their life and has a family of their own they can use the cash value to buy their first home. 

When your grandchild is ready to buy a home, they can access their Child Plan™ cash value by simply calling the insurance company and;

• Borrow the down payment from their Child Plan™ policy 
• Withdraw the amount they need from their Child Plan™ cash value.
• Use their Child Plan™ cash value as security for a personal loan from their local bank 

These options will give your grandchild the financial flexibility to buy their first home when they have their own family without needing the financial support from their family as so many Canadians are relying on these days.

To learn more how your child can use their Child Plan™ to buy a home, click HERE and request a personalized Child Plan™ illustration.

When you feel your grandchild is ready to manage their own Child Plan™ and manage the cash value of the plan responsibly, you can transfer ownership of their Child Plan™ to them.

You can transfer ownership of your grandchild’s Child Plan™ to them at any time after they turn 18. You are not legally obligated to transfer the Child Plan™ ownership to them until you feel they are ready.

When you’re ready to transfer their Child Plan™ ownership to them, you simply call the insurance company and change the ownership of the plan to them.

To learn more how to transfer a Child Plan™ to each of your grandchildren, click HERE and request a personalized Child Plan™ illustration.

No, when you transfer the ownership of a Child Plan™ participating whole life plan to your grandchild, there are no taxes to be paid on the transfer by you or by your grandchild.

The transfer of ownership of a “Participating” whole life plan between family members is completely tax free.

To learn more about transferring the Child Plan™ to each of your grandchildren, click HERE and request a personalized Child Plan™ illustration

Yes, you can open a Child Plan™ for your grandchildren if you don’t live in Canada.

To open a Child Plan™ for your grandchild, they must be living in Canada and you must have a Canadian bank account for the insurance company to receive the deposits.

If you don’t live in Canada but have a Canadian bank account, you can.

Open a Child Plan™ with your child as the owner of your grandchild’s Child Plan™ to hold in trust for their future and provide the bank information to the insurance company to retrieve their deposits.

If you don’t live in Canada and are not a resident or citizen, you can.

Open a Child Plan™ with your child as the owner of your grandchild’s Child Plan™ to hold in trust for their future and provide your child the funds to deposit to your grandchild’s Child Plan™.

To learn more about  opening a Child Plan™ from outside Canada for your grandchildren, click HERE and request a personalized Child Plan™ illustration

No, Child Plan™ is a “Participating” whole life insurance plan. Canadian banks are not permitted to provide any information to Canadians about “Participating” whole life insurance or open a plan at the bank.

You can only open a Child Plan™ “Participating” whole life plan by speaking with a licensed and qualified life insurance advisor or a Child Plan™ advisor. 

To learn more about opening a Child Plan™, click HERE and request a personalized ChildPlan illustration

Yes, you can open a Child Plan™ for your grandchildren and make your child (their parent) the owner of your grandchildren’s Child Plan™.

You can also assign ownership of your grandchildren’s Child Plan™ to your child anytime without any taxes or fees.

Many grandparents have opened Child Plan™s as their gift to their grandchildren’s futures and assigned ownership to their children to hold in trust for their grandchildren.

If you have more than one child and each has their own children, you can open a Child Plan™ for each grandchild and have each of your children hold that grandchild’s Child Plan™ in trust for their future.

You can be the depositor of the Child Plan™, while your child is the designated owner and manages your grandchild’s Child Plan™.

To learn more about opening a Child Plan™ in trust for your grandchildren, click HERE and request a personalized ChildPlan illustration

Yes! As grandparents we understand that life includes many financial uncertainties and having access to a financial asset worth thousands of dollars can be a temptation.

One of the greatest advantages of a Child Plan™ “Participating” whole life plan for grandchildren is that you as the owner of the plan can control when your grandchild can access the cash value.

• As the owner, your grandchild can’t access the cash value without your consent.

• You can also design the plan that even after you’ve assigned ownership of the Child Plan™ to your grandchild, they will still need your permission to access the Child Plan™ cash value.

To learn more about opening a Child Plan™ in trust for your grandchildren, click HERE and request a personalized ChildPlan illustration

Your Child Plan™ deposit options are; 

• Monthly
• Annually
• Prefund your entire Child Plan™ and qualify for up to a 35% discount

When meeting with your Child Plan™ advisor, ask how to get the discount on a Child Plan™.

To learn more about your Child Plan™ deposit options for your child’s future, click HERE and request a personalized ChildPlan illustration

Child Plan™ is a very flexible investment for your grandchildren’s futures.

When you open a Child Plan™ for your grandchildren you have the following options;

• You can designate your spouse as the backup owner of each Child Plan™ for your grandchildren.

If something happens to you, ownership of your grandchildren’s Child Plan™ is instantly assigned to your spouse tax free to hold in trust for your grandchildren.

• You can designate your child as the bank up owner of their child’s Child Plan™. If something happens to you, your grandchild’s Child Plan™ ownership will be automatically assigned to your child tax free to hold in trust for your grandchild’s future.

• You can designate each of your grandchildren as the back up owners of their own Child Plan™ anytime after they are 18, and each grandchild’s Child Plan™ ownership will automatically transfer to their hands, outside your estate and without estate fees or taxes.

To learn more about how Child Plan™ will transfer as your final gift to each of your grandchildren’s future, click HERE and request a personalized ChildPlan illustration