5 Best Ways to Support Your Child’s Dreams

Posted January 24, 2022 by in Lifestyle
Little Girls Lying on Green Grass Field

Amidst increasing competition and growing inflation, Canadian parents wonder how to secure their children’s future. The task might seem overwhelming, especially when intelligent investments are to be made in different avenues. As a parent, you should strive your best to ensure a happy and healthy life for your kids. Amidst all the financial expenses, commitments, and planning, you cannot possibly overlook insurance for children in Canada.

When you check this article, the experts have outlined how you can proceed with securing your children’s future. A meticulous planning process and the right investments define how the upcoming generations would combat financial challenges.

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How to Support Your Child’s Dreams by Choosing the Right Insurance Policy

Currently, around 79% of Canadian parents count on the CCB (Canada Child Benefit) plan. Based on the security required and criteria, parents enjoy the liberty to choose from several plans. Here are some of the prime benefits of having a child plan in place.

1. Insurance to Manage School Fees

You have certain insurance schemes for kids that pay a certain portion of your children’s school fees. However, these benefits are available after the death of the guardian or parent. Considering the child’s requirements, the insurance company would compensate a certain amount. Being a concerned parent, it would be wise to get a policy that would warrant financial support to manage your child’s educational expenses in your absence.

2. Policy catering to the child’s interests

Your child must have certain hobbies or passions. You would want your child to nurture their latent faculties by pursuing these interests. Have you wondered how you can manage the finances if one of these passions proves to be expensive? It would not be logical to let your child give up something they love.

With a proper child insurance plan, you can arrange the necessary financial support that can help your kid pursue their interests.

3. Expenses of higher education

When it comes to funding your child’s higher education, the expenses can be high. With one of the best insurance schemes in place, you can get good financial relief. Investing in insurance is long-term planning. Considering the consistent increment in educational costs, it makes sense to have a policy that would partially fund your child’s higher education.

4. Financial support for wedding

Well, as the big day of marriage approaches, you need to have the strong financial backing to manage the wedding expenses of your child. As a parent, you would count on your foresight and planning when investing in a child benefit policy.

Some insurers provide the cost of marriage, substantially helping you manage the expenses. After all, there’s nothing wrong with planning early so that you have a smooth financial journey.

5. Managing costs in an unstable market

Inflation and the rise in living costs in Canada are prime concerns for every citizen. Therefore, investing in a child plan makes sense, as the amount would get invested in lucrative avenues to deliver a positive return in the long run.

The appreciation value ensures that you will get factors like inflation covered for your children so that they can enjoy the necessary financial stability in an uncertain market.

Different Ways to Help Your Children Financially

Here are some ways you can secure the financial future of your child:

1. Insurance

Insurance happens to be a highly overlooked investment avenue when you strive to secure your kid’s future in Canada. Canadian parents look forward to purchasing life insurance policies for their children.

However, it is important to consult the insurance experts and strategize these purchases. Your kid might benefit from the policy after ten or twenty years. It is important to purchase these policies at the right time, so that your loved ones get the necessary financial stability when needed.

●       It is easy to apply for an insurance policy. The approval process takes only a few days, and you need not wait for months or weeks.

●       Your insurer will not re-price the policy once you purchase it. However, failure to invest at the right time might make the policy expensive, particularly if your child undergoes medication.

●       Through the policy’s cash surrender value, you can also arrange for the university or college fees for your child.

●       Once your child retires, they can take tax-free loans from the policy.

2. RESP

Having a Registered Education Savings Plan (RESP) is another way to secure your kids financially. This is a popular savings plan, free of tax that you can use to finance the costs of post-secondary education. Typically, RESP covers the expenses related to university or college tuition and other educational expenses.

As a parent, you won’t have any tax implications when contributing to an RESP. The government offers CESG (Canada Education Savings Grant), which is 20% of the overall contribution, amounting to a maximum of $2,500 annually per child.

This can help you gain grants of around $500 annually. If a parent is unable to contribute in a particular year, it is possible to catch up in the subsequent years.

3. RDSP

RDSPs (Registered Disability Savings Plans) are similar to RESPs. It happens to be a popular savings scheme for parents qualifying for DTC (Disability Tax Credit). These savings are not necessarily meant for educational expenses. However, it accumulates to serve your child’s long-term needs, specifically during the retirement days.


Among all the plans discussed in this article, child insurance continues to be the best investment avenue to secure a strong financial future for your kids. Being a parent, you might feel that the process of choosing the right policy would be overwhelming indeed.

Once you talk to the experts, they will guide you on this aspect. Particularly, you need to consider several factors like the scope of coverage, number of children, and the age when they should start benefiting from the policy.

You can make an informed investment decision now that you know what a child insurance policy should cover. With the help of specialists, you may intelligently direct your finances to assist future generations.  

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