Wealth is not earned – it is inherited. This may be a controversial statement to some, but we stand by this assertion. The point is that parents try to financially prepare their children for the future. All parents want their kids to be better off than they themselves were. They save for the child’s education; they teach their kids about saving and budgeting; grandparents buy Canada Savings Bonds; monetary birthday gifts are accumulated for years; and so on.

Life insurance is an important tool in the accrual of wealth. Specifically, Whole Life Participating insurance is a plan that builds a cash value year by year, and can be accessed at any time by the policy owner. This type of plan is a perfect gift for a child as it satisfies their need for insurance, and eliminates or reduces their future insurance needs. With Whole Life Participating insurance, not only does the cash value increase over time, so does the death benefit. The loss of life is not a pleasant topic, but it is a reality as it will happen to everybody. So eventually, when your child is elderly and passes on, their own spouse and children (your grandkids) will receive funds which can ease financial burdens, and/or increase wealth.