Blog Article

02 May 2024 | Life Insurance

Future-proofing Your Family: Invest in Their Tomorrow with $9 a Day!

Parents…Grandparents…set them up for the future!

A new report from Statistics Canada states that a family with two parents and two children, which the agency found is the most common family type, can expect to pay around $366,000 — per child — from birth until age 17.

$21,500 a year per child!
$1,792 per month.
Want it broken down even more?
$59.72 per DAY, per child, per year!

From a purely business perspective, what are you getting for your “investment” of $59.72 per day? Hopefully, a well-rounded child who ultimately makes contributions to society.

RESP is an option but from the Canada dot ca site.

For each beneficiary, the lifetime limit for contributions to all RESPs is the following: for 1996 to 2006 is $42,000 for 2007 and subsequent years is $50,000

Here’s my thought. Take $9 a day from that $59.72 and invest it in a Life Insurance policy for your child or grandchild.

I realize that when you think of Life Insurance it sometimes has a negative connotation. What I’m talking about is setting them up for their future.

For about $9 a day, you can have a $500,000 permanent life insurance policy that every year pays a dividend. In Life Insurance speak it’s called Total Cash Value.

Let’s break that down.
For a 1-year-old. $9 a day gets a benefit amount of $500,000 with a yearly dividend.

-10 years from now that dividend has grown from $0 to $6,300.
The benefit to $514,000
-20 years from now that dividend has now grown to $54,000.
The benefit to $626,000
-30 years from now that dividend will now be $124,000.
The benefit to $842,000.
-40 years from now that dividend will now be $242,000.
The benefit to $1,100,000.

And so on, and so on, and so on. All, still, for only $9 a DAY!

To me, this is the epitome of setting them up for their future. This is also how you make insurance work for you.

One last thought. There’s a very old expression. ‘Don’t put all your eggs in one basket.’

Please note: Whether you’re taking money out of a RESP or taking money from the Total Cash Value there are tax questions that must be addressed. Your accountant can help you with those.

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The views expressed in this article are for informational purposes only and do not constitute insurance advice. Readers are encouraged to contact a representative from Benchmark Insurance Ltd. directly for personalized insurance solutions tailored to their individual needs. Benchmark Insurance Ltd. is a niche insurance agency offering Life, Critical Illness, Long-Term Disability, and Group benefits to individuals and businesses across Ontario. To learn more about our services and how we can assist you, please reach out to us at info@benchmarkinsurance.ca or call 647-955-1242.
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By: admin

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