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PUA (PUAR) rider or simply the paid-up additions rider is a unique feature of insurance that has been discussed in details in The Infinite Banking Concept by Nelson Nash. In this article, we’ll talk about paid-up additions and how it suits this often neglected, and often misunderstood, financial freedom channel known as whole life.

Definition of Paid Up Additions

Paid-up additional insurance is added whole life insurance purchased by a policyholder using the policy’s dividends. PUA insurance is obtainable as a rider on life insurance coverage. It allows the policyholder to grow their living and death benefits by growing the cash value in the policy. Paid-up additions earn the dividends as well as the guaranteed rate, and their overall value increases over time.
Now, that is a wordy definition, but it still seems difficult to understand, and it doesn’t define what it really is.

Paid up additions (PUA)

Financial experts: Paid up Additions

Mini-Whole Life Policies

Now try imagining paid-up additions the same way as mini-paid up life insurance covers in your whole policy.
You don’t need to pay additional premiums for a paid-up policy. But you still maintain your cash value as well as your death benefit. This means you maintain your mini-cash value and mini-death benefit.
The mini-policies earn dividends and have a cash value plus a death benefit although you don’t pay additional premiums for them.
The mini-policies increase steadily over time, and you can get their cash value at any moment.
How Do You Select Paid-Up Additions?
For starters, Paid-Up Additions are a spec that exists in whole life insurance. This feature indicates how an individual wants to receive their dividends.


You can decide to receive your paid-up additions or either:
• Get paid in cash
• Lower your premium
• Payback loans


In most cases, utilizing a Paid-up Additions (PUA) rider will be the best option for you.

In most cases, whole life policies feature a rider that allows you to receive these paid-up additions. Different firms have different names. For instance, you’ll come across names such as:
• Paid-Up Additions Rider (PUA/PUAR)
• Addition Life Insurance Rider (AILIR)

Every earned dividend goes to acquire the paid up additions.

What is its purpose of PUA?

Paid up additions are used mainly because they help to:
• Increase Death Benefit
• Increase Cash Value
The main reason why they are so popular is because they pay out cash and offer death benefits simultaneously.
Compounded Interest
Albert Einstein is quoted as having said that “Compound interest is the eighth World Wonder.”
As you may already know, compound interest results in exponential growth.
Each paid-up addition increases cash value which consequently earns dividends in our (PUA) case. These dividends lead to additional paid-up additions, which end up earning dividends themselves.

Schedule a call with one of our financial experts to show you how you can benefit from Paid up additions.