RESP

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If you are spending your days worrying about your child's higher education after high school, then thank the Canadian government for designing the Registered Education Savings Plan (RESP), encouraging investment in your child's post-secondary education.

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Understanding RESP

Everyone is thrilled in the family when a newborn arrives home. Along with them, they bring joy, happiness, and specific responsibilities that parents need to take care of. From good health, financial security, safety while playing sports and ensuring their higher education, everything needs to be planned.


Your little bundle of joy will grow up quickly to start his/her college or university education in a few years. While most education in public schools is free up-to high school, one needs to save money for their child's college or university education. Canadian government motivates parents to save for their child’s higher education through the RESP program. The best way to save for your child’s higher education is RESP, where government matches your contribution with 20% Canada Education Savings Grant (CESG) to help and encourage you to save funds to pay for education expenses.

Features and Benefits of RESP

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The lifetime maximum Canada Education Savings Grant (CESG) per child is $7,200. The federal government contributes 20% of any amount up to $2,500 per year or up to $5000 if enough carry forward room exists.
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Don’t worry if you haven’t started an RESP for your child. CESG can be carried forward until the end of the year in which the child turns 17 even if you haven’t started an RESP for that child. Unused CESG room accumulates for possible use in the future years as long as the beneficiary remains eligible.
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Parents, grandparents, and other family members can open an RESP account for a child. RESP opened for anyone above the age of 17 will not attract the CESG.
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The RESP is a tax-advantaged account. When the money is taken out, the principal is paid back tax-free to the contributor. Any growth in the money is paid to the beneficiary when they go for post-secondary education. The beneficiary will pay little or no tax on the income from RESP growth depending on tax bracket of the child.
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If you live in British Columbia, when your child is between age 6 to 9 years, the BC government offers $1200 to your child’s education savings as BCTESG. This money stays in your Child's RESP even if you relocate to another province. Some other provinces also offer similar grants. Contact us for more details.
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There is no restriction on college or university. Your child can go to any recognized educational institution.
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There is also Canada Learning Bond. This is money that Canadian government adds to RESP for low income families. CLB provides upto $2000 more to help to pay for child’s higher education. No RESP contribution is required for to get the CLB. Contact us for more details for CLB.

When the Child Doesn't

Opt For Post-Secondary Education

What if your child doesn't seek a college or university degree? Don't worry if your kid doesn't go for a qualifying program; you have certain options.


  • You can keep the RESP open for up to 36 years in case your child changes his or her mind later.
  • You can simply transfer the plan to the original beneficiary's sibling, who is under 21 years. Additional conditions may apply in if there is already existing RESP for the other child.
  • You can transfer $50,000 of income to RRSP if you have contribution room in your RRSP. In order to move to RRSP, your RESP must have been in existence for ten years at least and the beneficiary must be at least 21 years old.
  • You may take the income in the RESP as cash and end up paying income tax plus 20% penalty. If you decide to take the cash or transfer to RRSP any grant will have to be paid back to the government.

We only work with an appointment

Call us now to schedule an appointment. We can meet with you anywhere in Greater Vancouver while following the COVID -19 safety regulations OR we are ready to meet with you over the internet with the Zoom meeting platform. We can provide our services over the internet anywhere in BC and Alberta.

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Why Chose LifeSmart Insurance?

At LifeSmart Insurance, our experts are available to advise you on your Child's Registered Education Savings Plan. They will guide you and help you with all the information so that you start saving for your child's post-secondary education. Speak with our RESP expert today to learn more.

Call us now to schedule an appointment. We can meet with you anywhere in Greater Vancouver while following the COVID -19 safety guidelines, OR we are ready to meet with you over the internet with the Zoom meeting platform. We can provide our services over the internet anywhere in BC and Alberta.

Get started with the experienced RESP advisor right away!