IBCvsRESP
Give Your Kids a Head Start: IBC vs. RESP
You want the best for your kids’ future, right? Sure, the RESP is a solid way to save for college, but it’s got some strings attached. Imagine having a savings tool that gives your kids more options, not just for school but for life—whether that’s buying their first home, starting a business, or tackling any big opportunity that comes their way.
With the Infinite Banking Concept (IBC) through a Life Insurance Policy, you’re building savings and setting them up with a foundation that keeps growing with them. And the best part? Ranch Your Way is here to guide you every step of the way!
Why IBC Might Be the Better Fit for Your Family
More Freedom:
With IBC, you can use the funds however and whenever you want—college, business, or even a down payment.
Keeps Growing:
Unlike the RESP, which wraps up after college, an IBC policy provides value for life.
Complete Control:
You decide how and when to use the funds. No penalties, no restrictions—just flexibility.
Legacy Matters:
An IBC policy isn’t just for today; it’s something that can benefit your kids for generations.
A Quick Look: RESP vs. IBC
| Primary Purpose | Savings for post-secondary education | Flexible savings, wealth-building, and financial control |
| Government Contributions | Yes, matching contributions through the Canada Education Savings Grant (CESG) | None, but policy grows through dividends and interest |
| Growth Potential | Market-dependent, with limited control | Stable growth with potential dividends (varies by policy and provider) |
| Withdrawals | Restricted to educational expenses for full benefit | Flexible, can be used for any purpose, including education |
| Tax Benefits | Tax-deferred growth; contributions not tax-deductible | Tax-advantaged growth; loans typically tax-free until they are not* (ask us about it) |
| Control Over Funds | Limited control; withdrawals must meet specific education criteria | Full control over loans and withdrawals |
| Impact of Unused Funds | Penalties and limitations if not used for education | No penalties; funds continue to grow or can be passed to beneficiaries |
| Lifespan | Ends when child reaches a specific age or completes studies | Lifelong coverage with potential generational benefits |
Ready to See What IBC Can Do for You?
If you’re looking for a way to give your kids more than just an education fund, IBC could be the answer. It’s about giving them the freedom to handle life’s opportunities on their terms. And with Ranch Your Way by your side, you’ll have the support and expertise to navigate this financial journey.