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What is the Million Dollar Baby Plan and how does it work for Canadians

Laurent Munier and Robert Trasolini in business suits stand and smile outside a Gastown building with large glass windows, appearing confident and relaxed — perhaps discussing the Infinite Banking Concept for Canadians or Whole Life Insurance strategies on the brick-paved sidewalk.

What is the Million Dollar Baby Plan and how does it work for Canadians?

What if you could set up a secure, tax-free financial foundation for your child or grandchild that grows with them and lasts a lifetime? That’s exactly what the Million Dollar Baby Plan does.

This isn’t just another savings plan—it’s a proven wealth-building strategy that creates financial security and lifelong benefits for your child.

Designed for Canadian parents and grandparents, this strategy uses a participating whole life insurance policy to build guaranteed savings, tax-free growth, and lifelong protection.

The Million Dollar Baby Plan provides financial freedom for your child, ensuring they have access to funds for major life milestones—university tuition, buying their first home, starting a business, and even securing a retirement nest egg.

This safe, simple, and tax-efficient strategy has been around for decades, but we’ve modernized it to work for today’s parents and grandparents in Canada. If you want to give your child or grandchild a financial advantage, this is a great way to do it.

What Is the Million Dollar Baby Plan?

The Million Dollar Baby Plan is a phrase we’ve coined long ago to describe a lifetime financial strategy for your kids and grandkids.

The Million Dollar Baby Plan is a whole life insurance policy with high cash surrender value that serves as insurance and a long-term savings vehicle for your child or grandchild.

This isn’t about traditional life insurance—it’s about building generational wealth using the same strategies that high-net-worth families have used for generations.

  • Builds a large pool of tax-free savings
  • Provides lifelong financial security
  • Can be used for education, home purchases, business ventures, retirement – whatever you want
  • Grows tax-free with dividends from the insurance company's Participating Account
  • Gives parents and grandparents full control over the funds until they choose

By setting this up early in your child’s life, you maximize compound growth and create a financial cushion that will support them through every major milestone.

How Does the Million Dollar Baby Plan Work?

Setting up a Million Dollar Baby Plan is easy and customizable. Here’s how it works:

Step 1: Set Up a Whole Life Insurance Policy
  • This is a participating whole life insurance policy with a high cash surrender value
  • The cash value grows tax-free over time, accumulating a significant savings pool
  • The earlier you start, the better—ideally from birth
Step 2: Make Monthly or Annual Contributions
  • You decide how much to contribute every month or every year.
  • Some grandparents contribute $500 - $1,000 per month to supercharge the plan
  • The cash value compounds tax-free for their whole life through dividends paid by the insurance company
Step 3: Build a Lifetime Financial Asset
  • The policy grows for life
  • Your child can borrow against it for major life events
  • You maintain full control until you decide to transfer ownership to them

Who Can Set Up the Million Dollar Baby Plan?

This strategy is perfect for:

  • Parents who want to provide financial security for their children
  • Grandparents who want to leave a legacy
  • Families who value long-term wealth-building strategies
  • Anyone who wants to help their child avoid student loans, mortgages, and business debt

There is no age limit—you can set this up for your newborn, toddler, or even a teenager.

Schedule Million Dollar Baby Call

What Can the Million Dollar Baby Plan Be Used For?

The flexibility of the Million Dollar Baby Plan is one of the reasons we recommend it—the funds in the policy can be used for anything your child or grandchild may need throughout their life.

Unlike other savings plans, such as an RESP (Registered Education Savings Plan) that can only be used for post-secondary education, the Million Dollar Baby Plan has no restrictions. The money grows tax-free and can be accessed at any time for any financial need.

Now, this isn’t just a savings account—it’s a financial foundation for your child/grandchild. Here’s how most families use it:

1. Education Funding: Paying for University or College

Higher education is one of the biggest expenses most families face. Tuition fees in Canada continue to rise, and when you add in housing, books, and other living expenses, sending a child to university can cost $80,000 - $150,000 or more.

With the Million Dollar Baby Plan, you can:

✔ Fund tuition costs for university, college, or trade school.

✔ Pay for student housing and living expenses without relying on student loans.

✔ Cover the cost of books, laptops, and supplies needed for academic success.

✔ Provide financial support for studying abroad or postgraduate education.

Unlike an RESP, which comes with withdrawal restrictions and tax implications, the Million Dollar Baby Plan allows you to access funds at any time, for any type of education, without penalties.

2. Home Purchase: Helping with a Down Payment and Expenses

One of the biggest challenges for young adults today is affording their first home. With housing prices continuing to rise, many first-time buyers struggle to save enough for a down payment.

  • With the Million Dollar Baby Plan, parents and grandparents can: Provide a down payment for a first home, helping their child enter the real estate market sooner.
  • Avoid mortgage insurance costs by increasing the down payment amount.
  • Give their child a financial head start without requiring them to take on traditional and excessive debt.

Since the funds in the policy are not tied to government restrictions, your child can use them whenever they’re ready to buy a home—whether that’s when they’re 25 or 30 years old or even later in life.

3. Starting a Business: Funding Entrepreneurship

Not every child will follow the traditional path of getting a degree and working a corporate job. Many young adults today are starting their own businesses—but one of the biggest barriers to entrepreneurship is lack of startup capital.

The Million Dollar Baby Plan provides:

  • Tax-free access to funds to invest in a business startup.
  • A way to avoid high-interest business loans.
  • Financial security while building a business, reducing the risk of failure.

Instead of relying on banks or outside investors, your child can use their Million Dollar Baby Plan to self-fund their business, keeping ownership and profits in their own hands.

4. Major Life Expenses: Weddings, Vehicles, and Travel

Throughout life, you have some significant expenses that come up. Instead of taking out loans or relying on credit cards, your child can use the Million Dollar Baby Plan to cover these costs.

Common uses include:

  • Wedding expenses (venue, dress, catering, honeymoon).
  • Purchasing their first car without needing an auto loan.
  • Funding travel and life experiences, like extended vacations or studying abroad.

Since the money inside the policy continues to grow, your child can borrow against it, pay it back, and then use it again for other major life events.

5. Retirement Planning: A Tax-Free Nest Egg for the Future

Most young people don’t think about retirement when they’re in their 20s or 30s but starting early is the key to financial security later in life.

The Million Dollar Baby Plan creates:

  • A guaranteed, tax-free retirement fund that grows over time.
  • A financial safety net in case of unexpected medical expenses or job loss.
  • A tax-free inheritance tool, allowing wealth to be passed down efficiently.

By contributing $250/month from birth, your child could have $1 million or more in cash value by age 65. This can supplement other retirement planning, employer pensions and government benefits.

Schedule Million Dollar Baby Call

Why the Million Dollar Baby Plan is so great

Unlike traditional savings plans that only serve one purpose, the Million Dollar Baby Plan is a multi-purpose financial tool that adapts to your child’s needs throughout life.

  • It can be used for ANY expense—from education to real estate to retirement.
  • It grows tax-free, ensuring maximum returns.
  • It provides lifelong financial security—not just short-term savings.
  • It has huge flexibility
  • It gives you full control over when and how the money is accessed.

This isn’t just a way to save—it’s a way to ensure financial independence and growth for your child while keeping control in your hands while they’re still young.

Who Controls the Money in the Million Dollar Baby Plan?

One question parents and grand parents ask all the time is who controls the money in the account?

You do. The payor is the only person with any control or access to the cash values inside the policy.

When you want to give your child or grandchild direct access to the account, you can easily transfer ownership to them. This can be at any age after 18.  We can even set it up so the account transfers to them automatically when you pass – we've got that set up for quite a few families.  It’s called Contingent Owners – so when the owner passes away, the policy ownership  automatically transfers to the contingent owner.

With the Million Dollar Baby Plan, the ownership structure is simple but powerful:

  1. You (the parent or grandparent) are the policy owner.
  2. Your child (or grandchild) is the insured person.
  3. You decide who the beneficiaries are and when ownership is transferred.

Because you own the policy, you have full authority over:

  • When and how the funds are used
  • Whether loans or withdrawals are taken from the cash value
  • When the child receives ownership of the policy

This level of control ensures long-term financial security and prevents irresponsible spending by young adults who may not yet have the financial maturity to manage a large sum of money.

You Decide When They Get Access

Your child cannot withdraw, borrow, or make changes to the policy. Only you can do that.

If they need money for a major life event (like university tuition, a home down payment, or starting a business), they must come to you first.

This gives you the ability to guide their financial decisions and ensure the money is used wisely.

You Can Transfer Ownership at Any Age

Many parents and grandparents transfer ownership when the child is 20, 25, or 30 years old— but there is no set rule.

You can wait as long as you want, ensuring that they have financial responsibility before taking control.

If you prefer, you can retain ownership indefinitely and continue managing the policy throughout your lifetime.

Automatic Ownership Transfer (Tax-Free) Upon Your Passing

If you pass away before transferring ownership, the policy will automatically transfer to your child tax-free.

Unlike traditional inheritance, this transfer avoids probate and estate taxes, ensuring that your child receives the full value of the policy without government interference.

This makes the Million Dollar Baby Plan an excellent estate planning tool, helping you pass down wealth efficiently.

Preventing Financial Mistakes

Many young adults lack the financial education and discipline needed to manage large sums of money effectively.

By maintaining control over the policy, you protect your child from making poor financial decisions, such as:

  1. Spending the money frivolously on cars, vacations, or luxury items
  2. Wasting the funds instead of using them for important life milestones
  3. Falling victim to bad investments or scams

With the Million Dollar Baby Plan, you retain decision-making power so that the money is used responsibly— whether for education, real estate, business opportunities, or future retirement security.

Schedule Million Dollar Baby Call

How Much Do You Need to Invest in the Million Dollar Baby Plan?

One of the most common questions we get about the Million Dollar Baby Plan is:

"How much do I need to contribute to make this work?"

This strategy is flexible and can be tailored to your budget and long-term financial goals.

The $250/Month Strategy: Reaching $1 Million

If your goal is to set up your child or grandchild with a plan that reaches $1 million by retirement age, then we recommend a starting contribution of $250 per month for 20 years and then stop.  You set this up right away in your child’s first year.

Here's why:

The earlier you start, the longer the policy has to compound.

A $250 monthly investment for 20 years at 6% will continue to compound to approximately $1 million by age 65.

This strategy provides a tax-free, guaranteed source of funds for your child’s major life expenses.

Even if you start later, we can adjust the contribution amounts to align with your child’s age and expected financial milestones.

Maximizing the Plan: Higher Contributions for Bigger Returns

Many parents and grandparents choose to supercharge the Million Dollar Baby Plan by contributing more.

Grandparents Funding Generational Wealth

We have clients who are investing $500, $750, or even $1,000 per month for their grandchildren.

This creates an even larger financial safety net, ensuring that future generations benefit from tax-free, compound growth.

High-Net-Worth Families Leveraging the Strategy

Some families use this as part of a larger estate planning strategy, contributing $25,000 - $100,000 annually per child to ensure multi-generational wealth transfer.

These policies are used as tax-efficient savings vehicles to maximize returns and reduce taxable estate values.

You can put really large amounts into these policies for your kids or grandkids — your plan can be customized to fit your family's long-term financial goals.

Schedule Million Dollar Baby Call

Why Haven’t You Heard About This Before?

Why Haven’t You Heard of the Million Dollar Baby Plan Before?

If it’s so great why haven’t you heard about it before?

Well that’s my fault.  We created the name Million Dollar Baby for this strategy years ago but we never did a good job of marketing it. Sorry.

Even with doing a bad job marketing, a lot of parents and families are coming to us to set up these Million Dollar Baby plans – and we love them. They’re really good for a family and for kids.

If you really want to have a good day and live a good life, set these plans up for families all day. It’s really nice.

So now we’re going to do a better job of explaining the Million Dollar Baby plan and letting parents know it’s available and we can set it up for you.

While we didn’t invent the concept of using whole life insurance as a wealth-building tool for children, we coined the phrase "Million Dollar Baby Plan" to describe this specific strategy. This method has been around for decades, but it has never been marketed or positioned in a way that makes it easy for parents and grandparents to understand.

That’s why we’ve taken the time to simplify and structure this concept in a way that helps families secure their children’s financial future—while giving them total control over the funds.

Why Haven’t Banks or Investment Firms Told You About This?

Most parents and grandparents manage their finances through banks and traditional investment firms - and that’s exactly why they’ve never heard of this strategy.

  • Banks and investment firms don’t sell whole life insurance - so they have no incentive to tell you about this.
  • Their focus is on products they manage, like RESPs, TFSAs, mutual funds, and RRSPs. These are all great products as well.
  • Financial advisors at banks are often limited in what they can offer, and life insurance isn’t part of their portfolio.

Because this strategy is only available through an insurance company, most people simply don’t know about it.

If it’s not something your bank offers, they won’t educate you on it - even if it’s in your best interest.

At Safe Pacific, we specialize in strategies involving life insurance, investment and leaving your legacy - and the Million Dollar Baby Plan is one of the most effective ways to build lasting wealth for your children and grandchildren.

Contact and More Info

And if you want to implement The Million Dollar Baby strategy then please click the link below and book a no obligations consultation with our team so we can give you the best solution for your situation.

financial consultation with the safe pacific team in canada

Next Steps

Whether you're a parent or grandparent, we’ll show you how the Million Dollar Baby Plan can work to achieve your family's budget and goals.

Let’s explore what this could look like for your family — no pressure, no obligation. Click here to start now.

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