With the holidays upon us, many are thinking about a gift that will show their child or grandchild how much they mean. Here is an idea not found in any store: life insurance. Consider these reasons why life insurance may be just the right choice.

• It can last a lifetime—and then some. Permanent life insurance provides death benefit protection, creates a living legacy that will accumulate cash value with each passing year and may help a child or grandchild get a head start on their financial future.

• It won’t wear out or fall apart. Provided we continue to pay the policy premiums, the life insurance policy purchased for our kids or grandkids today can still be there years from now—something that material things don’t offer.

• It has accumulation potential. Most gifts lose value over time. A permanent life insurance policy, on the other hand, has the potential to accumulate cash value each year. Cash values can be borrowed for any purpose—to provide a down payment on a first home, to help pay for college, to start a business or even to help fund a comfortable retirement years down the road.

• There may be tax advantages. Under current law, cash values that accumulate in a life insurance policy are tax deferred. Even when cash values are borrowed, there may be no tax consequences in many instances. Also, proceeds received by beneficiaries are generally not taxable as income.

• Premium rates may never be lower. Premiums generally increase with age, but with permanent life insurance, it’s possible to lock in the premium at the insured person’s current age—for life.

• This policy can help guarantee future insurability. Once the life insurance policy has been issued, coverage cannot be canceled as long as all required premiums are paid.

Donald Cox is an insurance agent at Farmers Insurance, in Tucson. Connect at 520-789-7234, [email protected] or FarmersAgent.com/DCox1.