Paid-Up Additions (PUA)
Whole life rider that uses dividends to buy small bits of additional fully paid-up insurance.
Full explanation
Paid-Up Additions (PUA) are a whole life rider that allows policy dividends and/or additional premium dollars to purchase small amounts of fully paid-up insurance. Each PUA increases both death benefit and cash value, and itself earns dividends in future years (compounding). PUA-heavy whole life designs are sometimes used for cash-value accumulation strategies (sometimes called 'Infinite Banking' or 'Bank On Yourself' — marketing terms; the underlying mechanic is real but oversold). For buyers with specific accumulation goals and the discipline to hold a policy 20+ years, PUA can produce meaningful tax-deferred growth.
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