RESP

Value Insurance

DESCRIPTION

What is RESP?

A Registered Education Savings Plan (RESP) is a government-registered account designed to help families save for their children’s post-secondary education. Contributions can be made by parents, relatives, or friends and grow on a tax-free basis. In addition to investment growth, the government provides grants and bonds to further boost your savings, making an RESP one of the most effective ways to fund future education costs.

college graduation
FEATURES

Why Should You Invest In RESP?

Education Security

Ensures your child has dedicated funds for college or university.

Tax-Free Growth

All investment income grows tax-free inside the RESP.

Government Grants

Access matching grants like the CESG and bonds such as the CLB.

Flexible Savings

Contribute at your own pace with no annual limits.

Family Support

Parents, grandparents, and relatives can all contribute.

Long-Term Potential

Lifetime contribution room of up to $50,000 per child.

OVERVIEW
Contributions
Deadlines
Tax Benefits
Investments
Withdrawal
  • No annual contribution limit, only a lifetime cap of $50,000 per child.
  • Contributions can come from parents, grandparents, or other family members.
  • Government grants are added on top of your own contributions.
  • Flexible structure allows both regular deposits and lump-sum savings.
  • Contributions are eligible for CESG grants until the end of the year a child turns 17.
  • Unused CESG room may be carried forward to future years.
  • CLB payments are available up to age 15 for eligible children.
  • RESP accounts can remain open for up to 35 years.
  • Investment growth is tax-sheltered while inside the RESP.
  • Withdrawals are taxed in the student’s name, usually at a low or zero tax rate.
  • Contributions are not tax-deductible but can be withdrawn tax-free.
  • Government grants and investment earnings are taxed only when withdrawn.
  • Funds can be invested in stocks, bonds, mutual funds, ETFs, and GICs.
  • Diversification helps balance growth and stability for long-term goals.
  • Investment choices depend on your risk tolerance and timeline.
  • Professional guidance can help maximize growth while managing risk.
  • Funds can be withdrawn to pay for eligible post-secondary expenses.
  • Contributions can be taken out tax-free at any time.
  • Grants and income are taxed when withdrawn, usually at the student’s lower tax rate.
  • If the child does not pursue post-secondary education, there are options to transfer or withdraw under certain conditions.
Insurance agent with client

Why Choose Value Insurance?

Customers should choose Value Insurance because we make getting the right coverage simple, affordable, and stress-free. Founded by Amit Shahi, our Canada-based team goes above and beyond to tailor insurance solutions that fit your unique needs, ensuring you never pay more than necessary. With access to a wide network of top-rated providers, we deliver the best rates and options available—without the confusing jargon or hidden fees. Our friendly experts guide you every step of the way, giving you confidence and peace of mind that your protection is secure. At Value Insurance, your satisfaction isn’t just a goal—it’s our promise.

FAQ

Questions

You can contribute up to $50,000 per child over the lifetime of the plan, with no annual maximum.

The Canada Education Savings Grant (CESG) provides up to $7,200 per child, while the Canada Learning Bond (CLB) offers up to $2,000 for low-income families.

You can transfer RESP funds to another child, roll them into your RRSP (under certain conditions), or withdraw them with some grant repayments and tax implications.

Your original contributions are not taxable. Only the grant money and investment income are taxed, typically at the student’s lower income rate.