Gifts that Keep Giving. Should I Open an RESP or Apply for a Whole Life Insurance Policy for my Child?
The quest for meaningful gifts gains momentum as the holiday season draws near.
While the idea of huge smiling grins when the children open their iPads and Lululemon is very appealing, there's immense value in considering gifts that keep giving.
The wow factor for this particular gift will kick in. However, it may not be until the first tuition payment is due.
The gift of financial security and future opportunities might be the way to go. Within this realm, the Registered Education Savings Plan (RESP) and Whole Life Insurance Plans stand as remarkable avenues to invest in the prosperity of loved ones.
As always, At CC&Associates, we can help guide you on the best option. If you need extra support, please book a 15-minute Q&A meeting with us here.
RESP: Nurturing Education, Nurturing Futures
An RESP isn't just a financial account; it's a gateway to nurturing future dreams and allowing young adults to live without financial stress while in post-secondary if they choose to go.
By contributing to an RESP, you're laying down the cornerstone for a child's educational journey.
This specialized savings tool encourages savings and attracts government grants, and who doesn’t love it when the government gives you free money?!
As these funds grow tax-free, they become a financial lifeline, easing the burden of educational expenses.
If your child decides they don't plan on attending post-secondary school, there are other ways to retrieve that money and use it for other priorities.
If you’re uncertain if an RESP is the way to go, another option could be opening an in-trust-for account.
Need advice? Reach out, and we can chat - book a 15-minute call with us here!
Whole Life Insurance: Safeguarding Futures
Whole Life Insurance isn't solely about protection after death but is an incredible vehicle for a growing investment.
Beyond providing a death benefit otherwise known as the amount of money your beneficiary gets when you pass, Whole Life Insurance accrues cash value over time, serving as a financial asset.
Whole Life Insurance is a lifelong coverage that pays your beneficiary a tax-free payment when you die. Your policy is guaranteed to grow in cash value as long as you pay your premiums. Cash value is the value of the insurance policy that you can borrow as cash, however, your insurance payout is reduced when you access your cash value.
Some options:
1. Funding your kid’s future
Access your policy’s cash value to help pay for things like post-secondary education.
2. Emergency expenses
Navigate unexpected costs like home repairs by accessing your policy’s cash value.
3. Leaving a legacy
Help your family or the charity of your choice enjoy what you’ve worked so hard to build.
By gifting this plan, you're providing a safety net and planting the seeds for a secure legacy.
RESP vs Whole Life Insurance: What’s the Difference
An RESP signifies a commitment to education, empowering young minds to chase their aspirations.
Meanwhile, Whole Life Insurance embodies safeguarding legacies, ensuring a future where financial security isn't a concern.
This season, let's embrace the spirit of giving gifts that will last a lifetime. The gift of thinking ahead - planning for education and financial security.
Thanks for reading,
CC&Associates