-
Building Wealth
for Families & Generations to ComeFor over 40 years, we have been putting parents
and their children in a position of strength and
control by empowering them with a vehicle that
drives wealth.
Accessibility
With banks, RESPs, RRSPs, GICs you have to give up access to your funds for an extended period of time in exchange for a higher return. The “R”, in RRSP or RESP, stands for “registered” which really means “restricted” and that your money is inaccessible.
Why sacrifice accessibility to your money for a higher return when you can have both.
With the Canadian Child Savings Plan (CCSP) - Guaranteed Return Policy, you will be able to access your money without sacrificing your benefits.
With CCSP’s Guaranteed Return Policy, we can build a savings plan which you or your child can have unrestricted access to, for whatever reasons funds are needed.
An RESP is when the government provides a grant relative to your contribution and can only be used for education. Furthermore, the plan dies once the child reaches college age. You are also somewhat penalized if the child doesn’t go to a qualified institution. The CCSP does not restrict you from using YOUR MONEY in any way you wish. You may use it to open a business, buy a car, put towards a home or any requirement at all. After all, it is your money. Your child will also have their own life insurance plan which has accumulated a significant benefit which they can choose to continue, for their own kids, even after they withdraw funds.
Give us a call for a free advisory session at (416) 407-9461 or click here to send us an email
We are a family with 3 small children. We were introduced to Collette by my sister, who also has 4 children. All of her children are enrolled in the Canadian Child Savings Plan and she seemed very happy about it because it guarantees a strong financial future for their family. I enrolled my children and unexpectedly, after only one year, I had an urgent need for money because I had to go back to school. Collette told me to call Canada Life to access money from my account. To my great surprise, they sent a cheque to me within a week with no questions asked about my credit or my income. Unbelievable!!!
Felippeano Hanna
Education
Are you concerned about your children or grandchildren starting life in debt?
With student loans, and without any savings to rely on? If costs increase 5% per year, in 10 years the average cost for a four-year university program could be over $150,000. Almost double what it costs today.
Not sure how you can afford to invest in your child’s education? There is a simple way to overcome the financial challenges which inevitably come our way. This strategy is the CCSP’s Guaranteed Return Policy.
Eliminate your stress regarding your children’s future struggle and education costs by planning strategically, today.
A Guaranteed Return Policy is a savings & protection plan which is tax exempt. It is a program where you can build a foundation for your child which enables forced savings, accelerates growth and allows easy and tax free access to Funds. While setting up your child for success, you will also be able to use this CCSP as a tool to teach them financial literacy, where they themselves can access tens of thousands of dollars by age 18 and still keep managing their funds into their 40s where they can have access to well over $180,000.
We also have been contributing to the Canadian Child Savings Plan because we have 4 small children and we want to have money available for their education and any other major expenses as they grow up. This plan offers us flexibility, knowing that it is difficult to predict how each of them will view post-secondary schooling. It will also create strong financial backing for them in the future, and we also have access to the funds in the plan, at any time. The way everything is set up makes us feel very secure.
Raybonnet Davis
Insurance Services
As one grows a family and gains assets in life, it is important to ensure that these acquired assets remain in one’s family in the event of a loved one’s death.
Also, that any remaining debts can be paid off, without financially disrupting a devastated family when that time comes. In many cases, when there is a loss, family members rely on one’s income and therefore the loss of this income can create a heavy burden on an individual’s spouse, dependents and loved ones.
FAQs
- What Is CCSP - Guaranteed Return Policy?
- What Is Participating Whole Life Insurance?
- Is GRP An Resp?
- How Much Do I Need To Contribute To A GRP?
- How Long Is The Contribution Period?
- Which Is The Best Way To Fund This Plan?
- Who Can Open A GRP Plan For A Child?
- What Are The Tax Implications Of A GRP Plan?
- How Safe Is The Plan?
- Will I Know How Much The GRP Will Grow During My Child’s Life?
- What Is A Free Personalized Planning Tool?
- How Does One Access The Money In The Plan?
- How Can I Open A GRP Plan?
A Guaranteed Return Policy (GRP) is a specifically designed Participating Whole Life Insurance Policy. The plan provides 3 major benefits: -
- Guaranteed Cash Values,
- Tax-Free annual dividends and
- Permanent Whole Life Insurance.
This unique combination guarantees that the family will have a fund that keeps growing tax-free. The money can be used at any time, for any reason at all;
The child will be insured for their entire life;
In addition to all of this, they will ALWAYS still leave a substantial amount of money for their beneficiaries. (creating Generational Wealth).
Participating whole life insurance allows the policy owner to “participate” in the insurance company's profits. They provide guaranteed cash values and annual tax-free dividends. This is typically used by corporations and more affluent families.
No. It is not. An RESP (Registered Education Savings Plan) is a government program whereby the government, through the CESG (Canada Education Savings Grant), will match 20% of any RESP contributions, to a maximum of $500 per child each year.
The maximum lifetime CESG grant amount for each child (including additional grants) is $7,200.
While an RESP provides a government grant, is does have certain restrictions on the use of funds since it is only for education.
A GRP is your private plan which is designed to last for the rest of the child’s life, and on to the next generation. It can provide for education anywhere in the world, or fund any need the parent or child may have.
There are no hard and fast minimums or maximums. The ideal amount will depend solely on your family budget. While the average family contributes about $200. Per month per child, there are those who see it fit to contribute $500. Per month or more.
Your GRP Plan will be completely paid up for life, after 20 years of contribution.
Each parent or guardian receives the Canada Child Benefit (from the government) from birth to age 18 for each child. This amount has increased substantially in the past 4 years. (Currently the average family, with a combined income of $80,000. receives $336. /month /child). We encourage parents to use some of the Canada Child Benefit to partially fund the Guaranteed Return Policy, which is designed to be totally funded in 20 years.
Calculate your Canada Child Benefit qualification amount- https://apps.cra-arc.gc.ca/ebci/icbc/prot/proc_witb1
A GRP can be opened by a parent, grand parent, aunt, uncle or legal guardian of the child.
All dividends paid into the plan are tax-free.
All values accumulate in the plan tax-free.
On the death of the insured child, the Life Insurance Value is paid out to the chosen beneficiary/beneficiaries, tax-free.
The plan can be collapsed at any time and the cash value withdrawn. In this case the withdrawn amount will be subject to taxes at the marginal tax rate of the plan owner.
The core of the plan is a Life Insurance policy which is backed by one of Canada’s Largest Insurance companies. The plan is extremely safe because Insurance companies are all regulated by the government and are totally regulated. Life Insurance companies provide Guarantees n=because they are not allowed to leverage their assets.
Yes. You may request a Free Personalized Planning Tool which will give you a complete breakdown of the growth of the plan over the years. This tool will be specific to your child’s age, and the amount of your contribution.
This is a personalized analysis designed specifically to your child’s age, gender and your chosen contribution amount. It will detail the growth of the cash values dividends and the Tax -Free Life insurance pay out to your child’s beneficiary.
You can request a Free Planning Tool by clicking here.
All cash values in the plan can be accessed by either termination the plan, or by taking what is called a policy loan for up to 90% of the cash value in the plan at any time. Policy loans are not taxable. The loans may be paid back into the plan at any time. If not repaid, the insurance company will deduct the loan principal plus accrued interest, from the death benefit, at the time of the death of the insured child.
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We are a family operated business who believes that success lives where preparation meets opportunity. Let our family take care of yours and let us empower your family by preparing you with the strategies which get you to your desired outcomes.
Serving across North York, Scarborough, Etobicoke, Toronto, Vaughan, Markham, Richmond Hill, Pickering, Ajax, Aurora, and the surrounding areas.