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Why do I pay an insurance premium? Can I refuse this insurance and what coverage does it provide?

OUR ANSWER

The optional insurance currently offered with our RESPs provides coverage in the event of the subscriber’s death or total and permanent disability. This means that if the subscriber dies or becomes disabled, the insurance will cover the remaining contributions to the plan. This coverage ensures the RESP does not become a financial burden for the family and, most of all, ensures the beneficiary’s post-secondary education is not jeopardized.

Not that this insurance policy was mandatory in the past, specifically for all plans opened before December 8, 2009. However, when the time comes to withdraw the educational assistance payments (EAPs) for your beneficiary, these may be supplemented by an experience refund.