Christmas is such an exciting time, especially for kids. Parties, decorations, and so many presents! But, as many parents will tell you, kids get more toys and games than they know what to do with, and those often only get played with for a few months, until the novelty wears off.
If you’ve got kids on your shopping list, maybe it’s time to think about long term, sustainable Christmas gifts that keep giving, even into adulthood. So what do we suggest?
RESP contributions – the gift of higher education
- The government will match 20% of every contribution made to a maximum of $500 annually.
- This money can be used to fund college, university and trade programs at most post-secondary institutions in Canada and the US.
- RESPs can be owned by parents or grandparents, and contributions can be made by anyone, so long as the actual plan owner signs the deposit slip.
GIC investments – the gift of savings
- GIC rates are higher than they have been in years, with some institutions posting 4.66% for a one-year term!
- GICs can be held in-trust for minors, and the minor beneficiary can transfer them to an investment that they own when they are 18.
Life Insurance – the gift of future insurability
- Whole life, participating life insurance policies grow in coverage and cash value through annual dividends and paid-up life insurance.
- With a Guaranteed Insurability Benefit rider, the insured can purchase further coverage as an adult with no medical evidence or underwriting required; this will allow the child to continue to purchase life insurance even if they have health issues that would affect insurability.
- Coverage is inexpensive! A $25,000 whole life policy on a 5 year old boy can cost as little as $38.90/month!
Critical Illness Insurance – the gift of protection against the unknown
- Pays a lump sum, tax-free amount to the beneficiary if the child is diagnosed with one of a predetermined list of illnesses, which can help with the cost of treatment and equipment required.
- Is convertible to an adult’s policy at age 25, without medical evidence or underwriting required.
- With the Return of Premium at Expiry rider, the policy owner will receive 100% of their premiums refunded back to you when the insured is 25, so long as no claims have been made.
We don’t have a crystal ball to tell you what the future holds for the children in your life, but we do know that any of these options will give them a leg up as adults.
Give them something that won’t get old and worn, won’t end up in the landfill and will be appreciated for years to come. With every contract, we offer the option to include a customized letter to the child, from you, explaining the reasons you set up this policy or plan for them and why you felt it was important to do so.
Our team is always available to discuss these, or any other options, with you. Give us a call, send us an email, or get in touch via social media. We’re happy to help.