MILIFE Children Plan is a unique combination of Registered Education Savings Plan (Resp) and Participating Whole Life Insurance to maximize your savings when you need money for the education or marriage of your child but also provides your child with life insurance for future protection. The best part about the plan is that both savings & insurance grow with your child.

The funds can be used for:

  • Any education plan around the world
  • Any expenses required during the marriage
  • Any financial need in this lifetime or offer to their family

How MILIFE Children Plan grows like your child grows.

MILIFE Children Plan includes Registered Education Savings Plan which doubles an education funds.
MILIFE Children Plan includes Participating Whole Life Insurance which provides cash values and insurance that grows in value throughout your child’s life and for their future generations.
MILIFE Children Plan can be given or transferred to your child for tax free anytime after they turn age 18.

Features and Benefits of MILIFE Children Plan

  • Plan is a unique and optimum combination of Registered Education Savings Plan.
  • Plan and Whole Life Participating Plan.
  • Plan can be opened by Parents, Grandparents.
  • You can transfer the plan tax free to your child/grandchild any time after they turn 18.
  • Cash Values can be used for any Education programme around the world.
  • Plan is only payable for 20 years. No further deposits will ever be required.
  • You or your child can use cash value for any financial need in life.
  • Your child will be permanently covered for life insurance.

Registered Education Savings Plan Canada

Building a financial nest for your child’s higher education

What is RESP?

Registered Education Savings Plan or RESP is a savings plan offered by the Government of Canada for the education of their country’s children. It is one of the best and secure ways to invest in your child’s post-secondary education, enabling them to chose the field of their choice for higher education, notwithstanding any financial barriers that may arise in building their bright future.
The investments made in a Registered Education Savings Plan can be used by the beneficiary children for pursuing any full-time or part-time educational degree as per their choice, at any age before the RESP plan expires.

Who can open an RESP?

A child education savings plan of Canada can be opened by any citizen who is willing to financially secure the higher education of a child or a group of children. They can choose from the 3 available plans depending on their relationship with the child they wish to open an RESP account for.

Types of Registered Education Savings Plan:

1. Individual RESP Plan

As the name suggests, an Individual RESP plan is ideal if you are a single contributor willing to invest in a child’s post-secondary education. This plan can be opened by any individual (who will be the plan holder) for any individual child (who will be the beneficiary). In an individual RESP plan, there is no compulsion on the beneficiary child to be related to the individual plan holder in any way.

2. Group RESP Plan

In a group RESP plan, a number of individuals can come together to contribute to the higher education of any individual child, they may or may not be related to. All the contributing individuals will be the plan holders of this RESP having a single child beneficiary, having no compulsion for the child to be directly or indirectly related to any of the plan holders.

3. Family RESP Plan

With a family RESP plan, any individual can choose to contribute to the higher education of a group of children belonging to his or her own family. These children can be the individual plan holder’s own children along with the other related children like their nieces and nephews. All the children covered under the family RESP are equal beneficiaries of the plan.

Facts and Benefits of having RESP for Children

A Registered Education Savings Plan holds many benefits for the covered children. However, there are many facts that the plan holder should be aware of while investing in an RESP for their children. Below are a few facts and benefits of investing in the Registered Education Savings Plan for children.
Tax Advantage:
- Investments made in an RESP are tax-deferred.
- These investments can grow over time in cash value, which shall remain tax-free until they are withdrawn.
RESP Plan’s Life and Contribution Limit:
- One can contribute to the RESP plan for 31 years, from the time the account was opened.
- There is no annual contribution limit however, there is a maximum contribution limit of $50,000 on every RESP account.
- An RESP account expires after 35 years, from the time the account was opened.
Government Contributions to RESP:
- The Government of Canada makes substantial contributions annually to the Registered Education Savings Plan for children. These contributions are made in the form of grants known as the Canada Education Savings Grant (CESG).
- Every RESP is eligible for the annual grants by the government of Canada, for a total of 20% of the annual contributions made by the plan holder to a maximum contribution amount of $500 for each plan.
- The maximum contribution limit by the government on each RESP is $7,200.
- The grant money can be used tax-free by the beneficiary child for any post-secondary education expenses that comprise of admission and tuition fees, and all other related educational expenses like hostel stay, transport, stationery, etc.
Transfer of RESP:
- An RESP plan holder can choose to transfer up to $50,000 of the total contributions made by them, returning all government contributions and grants back to the government.
- The plan holder can transfer the RESP money to one of the following.
  • To another RESP plan
  • To their own RRSP
- To transfer money from one RESP beneficiary to another, one of the following criteria should be met:
  • The receiving beneficiary should be under the age of 21 and should be a brother or sister of the transferring beneficiary
  • You should hold a family RESP covering multiple siblings of the family
- To transfer money from an RESP to RRSP, the following criteria should be met:
  • All the beneficiaries covered under the RESP should have reached 21 years of age
  • Your RESP should have completed a total of 10 years
  • Your RRSP has not met the maximum contribution limit
Tax-free Withdrawal from RESP:
- The plan holder can choose to completely withdraw from their RESP and receive back all the contributions made by them, without having to pay any tax.
- Any interest earned on the contributions can be taken home, however, it has certain tax implications, and the RESP must meet the following criteria for withdrawal:
  • All the beneficiaries covered under the RESP should have reached 21 years of age and not be pursuing any higher education
  • Your RESP should have completed a total of 10 years
- All the contributions received on the RESP plan by the government should be returned back to the government. These contributions can only be accessed to meet the expenses of the higher education of children.
RESP is one of the most preferred child education savings plans of Canada. We at MILife have the most affordable and durable children's plan for their long-term financial security for both, their education and life. Let’s discuss which plan can best suit for your child’s bright and secure future.

Sample illustration of MCP Cash and Insurance Values

Age Accumulated Cash Value Stages Life Insurance Value
18 $98,064 Education $229,086
31 $59,945 Marriage $314,857
45 $131,250 Security $440,986
65 $388,589 Retirement $714,257
85 $976,425 Family $1,209,386
*Based on a Monthly Deposit of $275 per month
Sample Illustration is based on $275 per month deposit for 20 years only and assuming plan starts when the child is less than 1 year old. Values and age 31, 45, 65 and 85 are illustrated assuming 72% of the funds at age 18 are used for education purpose. Cash and Insurance valued are based on current dividends scale from a Canadian life insurance Company and current rate of interest from Canadian RESP Plan Distributor. This example is strictly for illustration purpose only and values may differ.

Personalize Your Children Plans

Request an Illustration to see how much cash value/insurance your child will have for their education and for life.
*Illustrations are reflective of the annual premium amount.