the public and contestable probate process. Can be funded using gift tax or generation-skipping tax exclusion amounts. Most insurance carriers require that a parent have a life insurance policy in place prior to purchasing a policy for a child. A policy purchased for a child can have a face value up to half that in place for the parent (in New York it is up to a quarter of that which is in place for the parent up to the child's fifth year). A grandparent is eligible to purchase a policy for a grandchild with fewer limits. Cash value The growth of the cash value inside an insurance policy in a tax-deferred environment (through guaranteed interest and credited dividends) creates lifetime saving opportunities that can be used for any purpose: to pay for college, finance the purchase of a home, establish a supplemental source of retirement income, or provide security, maintenance and support for future generations. Premium A juvenile life insurance policy typically requires a minimum of $700 of annual premium, which provides approximately $100,000 of face value. The policy owner may utilize the gift tax exclusion amount (up to $15,000 per person per year per child, in 2018) to help pay the annual premium and avoid gift tax liability. Face amounts for juvenile life insurance policies of this type range from $100,000 to $10,000,000. Guaranteed growth Many insurance companies offer policies with a guaranteed interest rate plus a non-guaranteed dividend. Each insurance company’s dividend is determined by its claims, investment performance, and administrative expenses. Some companies have a record of consistently paying annual dividends for over 100 years. Several insurance companies offer the option of having a portion of the return based on the performance of an equity index. Lifetime benefit The tax-free buildup of guaranteed interest and non-guaranteed dividends within an insurance policy provides a source of funds that are accessible within a week, at any time, for any purpose, and without penalty. The policy owner (typically a parent) controls access to funds and their use. Children can be given ownership and control of the policy or it can remain in a trust after reaching adulthood. In either case, it provides coverage to meet the future insurance needs of the child, and a source of cash for the child's family. Intergenerational wealth transfer A grandparent or parent can pay the annual premiums for a juvenile life insurance policy