The beneficiary is generally a guardian or parent. With adult insureds, the policy is generally owned outright by the insured, who selects the beneficiaries. Life insurance can last a lifetime, provided you continue to pay premiums. The policy you purchase for a son or daughter today can still be there years from now, providing death benefit protection for this child's own son, daughter, or spouse. 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 are available . There are tax advantages . Under current law, cash values that accumulate in the policy are tax deferred. Even when cash values are borrowed, there may be no tax consequences in many instances.