By Joel Zimmerman

While not many people think of life insurance as fundamental, it is necessary if you want to protect your family, business, legacy, and other valuable assets. With the increased uncertainty of life, think about the future of your family when you exit the stage. After all, it lasts forever, as long as you pay the regular premiums promptly. Consider it as a gift to your dependants. They will forever be grateful to you for minding their financial security.

Invest in it as a gift

The next time you think of gifting your children and grandchildren, consider giving them a life insurance policy. Perhaps the biggest advantage is the fact that you can choose the method of paying premiums to your insurance company.

In fact, you can also invest in a policy where your children are the life assured. The following are the most common advantages that you will enjoy. Make the most use of them while they last.

• It can last a lifetime – take advantage of protection that lasts as long as you live. Should you suffer a disability or pass on, your child gains a head start on his financial life.

• It won’t wear out or fall apart – as you cannot be sure of the shelf life of material wealth, purchasing a policy assures you that the asset will live for years to come.

• It has accumulation potential – while most material assets lose value as the years go, the value of a life insurance policy actually accumulates as long as you pay premiums.

• There are tax advantages – most cash values from these policies are tax deferred under the current law. This also applies to borrowed cash values.

• Premium rates may never be lower – as your age increases, so do the regular insurance premiums. Therefore, lock the amount of your premiums at your current age.

• Future insurability – when you grow older, the possibility of companies to insure you goes lower as companies deem older people and those with diseases as risky to insure.

Factors that can affect your life insurance

Even from the life insurance definition, a number of factors determine your quote. While some of these are beyond your control, your lifestyle can influence others. Most companies that provide insurance are very thorough and meticulous when examining these factors. This is because they do not want to take risks that will cost them money.

1. Age – the earlier you obtain an insurance policy, the better for you and your dependants. Companies will underwrite you faster if you are young unlike when you grow older.

2. Gender – statistics show that women generally live longer than men. This means they are more insurable than their male counterparts.

3. Smoking – people who smoke are a red flag for most insurance companies. This is because smoking increases your chances to suffer diseases such as lung cancer.

4. Health – keep good health to purchase a favorable policy. Companies usually examine your cholesterol, blood pressure, weight, height and other metrics.

5. Lifestyle – if you actively engage in risky activity such as extreme sports, companies deem you more risky to insure. Therefore, make your choices wisely.

6. Family Medical History – the quality of your genes is one factor that you cannot control. If your parents suffered a certain serious condition, you may obtain insurance at a high cost.

7. Driving Record – insurance companies will access your driving records from the Department of Motor Vehicles. If you have had many accidents, they deem you risky to insure.

8. The Bottom Line – before applying for a life insurance, examine these factors and try to correct them if possible. This can guarantee you a more favourable policy.

Evidently, investing in one or more life insurance types is a sure way of protecting your family against the uncertainties of this life. Additionally, it is a great way for you to invest and do retirement planning. Instead of procrastinating, purchase a policy today and take advantage of the tax benefits of life insurance.

– Joel Zimmerman is an experienced financial advisor and his areas of specialization include retirement planning and risk management. When Joel is not working with clients, he is busy creating informative blogs and whitepapers. Follow this financial whiz @life_centra. You can also check out his fiscal blogs and videos on LifeCentra.