Protect your children or grandchildren, and provide financial opportunities to make their lives more secure. With Whole Life > Head Start™, you can fast-track their financial future with a life insurance policy that includes cash value.


Your challenge

You want to protect your children or grandchildren at any cost, as well as provide financial opportunities to make their lives more secure. Having reached a level of financial success that exceeds your lifetime needs, you would like to transfer a portion of your wealth to your loved ones.

The challenge is if you invest in a Mutual Fund or other investment option, you will end up paying tax and that investment may not be as valuable to your loved one as you intended.


Our solution

Fortunately, life insurance can be passed from one generation to another with limited tax implications. With Whole Life > Head Start,™ you can give your children or grandchildren a head start with a life insurance policy that includes a cash-value component, allowing for potential payment flexibility and tax-advantaged cash accumulation. As a result, your loved ones can have access to money they may need in the future; for example, towards their education or down payment on a home.

Also, if you purchase insurance now, when they’re young, it allows you to lock in the lowest possible rates.


How it works

  1. You purchase a Whole Life > Head Start™ policy on the life of your child or grandchild. As the owner of the policy, you pay the premium.
  2. You may contribute excess funds into the policy using the Additional Deposit Option (ADO) to maximize cash accumulation.
  3. In the future, when you transfer policy ownership to your child or grandchild, they assume the value of the policy including any additional cash value.
  4. When the policy is transferred to your child or grandchild, they pay any future premiums.


Client: Male age 0
Product: Whole Life > Head Start,™ 20-Pay* policy
Amount of coverage: $100,000 face amount, with paid-up additions dividend option
Monthly premium: $108

End of
Policy Year
Cash Values
Total Cash
Total Death
10 $2,600 $3,492 $113,730
20 $9,300 $15,061 $158,782
45 $23,200 $88,507 $347,375
65 $44,500 $304,275 $603,440
Total Cash Value and Total Death Benefit are dependent on dividends paid, and not guaranteed.The values shown assume our base dividend scenario.



  1. Create a first step in your child or grandchild’s lifelong financial plan by purchasing a Whole Life policy, secured when rates are as low as possible.
  2. Enjoy tax-advantaged growth of the cash value component.
  3. When the policy is transferred to your child or grandchild, it may qualify for tax-free rollover.
  4. After transfer, your child or grandchild can access funds as needed and name a new beneficiary.

*20-Pay Life is paid-up for life after 20 years of premium payments. This concept is based on current interpretations of Canada Revenue Agency laws and regulations. Future changes to these rules, or interpretations thereof, could impact the tax-effectiveness of the concept.