Paid-Up Additional Insurance
Candlefocus EditorPUA is a great tool to use when you want to increase the death benefit of your existing policy without declaring added income or paying more money up front.PUA can be used to build up cash value, which you can also use to borrow loans if you require liquidity.
Since PUA policy is paid-up and there’s no ongoing premium payments required, the policy divested from the PUA will grow on an interest basis through the life of the policy. This means that the worth of your policy will compound over the years, and over time you’ll see the face value of your life insurance policy get larger and larger.
Many life insurance companies also offer PUA riders. This rider allows policyholders to purchase additional paid-up life insurance at specific intervals throughout the duration of their policy at a lower cost. This feature helps to significantly reduce the cost of buying additional life insurance coverage down the line.
In general, paid-up additions act similarly to regular life insurance policies. They can provide death benefit coverage at specified intervals and they can earn dividends depending on the policyholder’s insurance company. Additionally, the policyholder can access the value of the paid-up additions through a loan or surrender the policy for its cash value.
Overall, investing in paid-up additional insurance can bring a myriad of benefits to a permanent life insurance policyholder. It’s an affordable option to build up cash value and expand life insurance coverage with no cost to the policyholder. Ultimately, it offers policyholders the opportunity to receive greater value out of their existing policy and to increase the death benefit amount for their loved ones in the event of premature or untimely death.