How parents can use life insurance to plan for post-secondary education

As a parent, you want to give your kids every opportunity to succeed, and this includes access to education. Whether it's college, university, or trade school, post-secondary education can open doors and shape a strong future.

But it also comes with a cost.

With tuition, housing, and living expenses rising, many parents are thinking ahead. While RESPs (Registered Education Savings Plans) are a great way to save, they’re not the only tool available.

Life insurance can play a valuable role in supporting your child’s education goals – especially if the unexpected happens. And in some cases, it can also be a way to grow long-term savings.

Let’s take a look at how.

1. Life insurance creates a financial safety net for your family’s goals

Parents often plan to be there every step of the way – from their child’s first day of kindergarten to university graduation. But what if something happened to you before that day came?

Life insurance is designed to protect the plans you’ve made, even if you’re not there to carry them out.

If you pass away during your working years, a life insurance policy can provide a tax-free lump sum to your family. That payout can help cover:

• Everyday household expenses
• Outstanding debts or mortgage payments
• Future education costs for your child
   

Having this protection in place ensures that your child’s education goals can continue, even if your income doesn’t.

2. Permanent life insurance can grow savings for future tuition

While term life insurance is designed for temporary protection, permanent life insurance (such as whole life insurance) can offer a second benefit: cash value growth.

This means your policy builds savings inside it over time – and you can access that value later to help fund education costs.

You can:

• Withdraw funds from the policy
• Take out a policy loan
• Use the value as a financial asset later in life
   

This cash value can be used for tuition, books, housing, or other school-related expenses. It can also be a helpful backup if your child doesn’t qualify for student loans or if you reach the $50,000 lifetime contribution limit for their RESP.

3. You can purchase permanent life insurance for your child

Many parents don’t realize that they can purchase permanent life insurance for their children – and it can be a smart long-term planning move.

When you purchase a whole or universal life insurance policy for your child:

• The cost is very low, since your child is young and healthy
• The policy builds tax-advantaged cash value over time
• Your child can use that cash value in the future for education, a down payment, or even to start a business
   

Plus, you’re giving your child a guaranteed level of coverage they can carry through life, even if they develop health conditions later.

It’s not a substitute for an RESP – but it can complement one by adding flexibility, early access to funds, and long-term value.

4. Insurance can help protect your RESP savings strategy

RESPs are a great way to save for education, especially with government grants. But what if a parent passes away or becomes unable to keep contributing?

That’s where life insurance can support the plan.

By having a life insurance policy in place, your family can:

• Continue making RESP contributions using the policy payout
• Protect your overall financial strategy, even through hardship
• Ensure your children’s education funding stays intact
   

It’s not just about saving. It’s about protecting the savings plan itself.

5. It supports long-term planning for blended or growing families

For families with more than one child or complex dynamics, life insurance allows you to plan in a way that’s fair and consistent.

You can:

• Name multiple children as beneficiaries
• Allocate a portion of a policy’s payout to education
• Use permanent policies as a tool to create lasting value for each child
   

This type of strategy offers clarity and structure, while giving you room to adjust as your family grows or changes.

So, what kind of insurance should you consider?

Here’s a quick overview:

The best option depends on your goals, your timeline, and your family’s financial picture. We can help you figure out what combination fits best.

Building your family’s education strategy

We take the long view. We know that education planning isn’t just about setting money aside. It’s about building a protection strategy that evolves with your family.

Here’s how we support parents:

• We start with a comprehensive insurance audit to see what you already have in place.
• We walk you through your options – so you understand how insurance can complement your existing savings.
• We help you structure a plan that supports your education goals, family protection, and financial flexibility.
• We revisit your coverage regularly to make sure it still meets your needs.
   

We’re not here to sell you a product. We’re here to build a plan with you—one that gives your child more possibilities for the future.

Putting it all into perspective

Life insurance can be more than a safety net. It can be part of your strategy to help your child learn, grow, and thrive. Whether you’re looking to protect your income, support an RESP plan, or gift your child a financial head start with permanent life insurance, there’s a smart way to do it.

Want to explore how insurance can support your child’s education goals?

Reach out. Let’s work together to protect what matters most – and help your child build their future with confidence.