Paid up additions is a word that is abbreviated as PUA. When you buy a life insurance, you are offered with a unique feature, and that’s the one called a paid up addition rider. More information regarding most attractive features of whole life insurance have to be looked for by those who would like to know the meaning of this unique addition insurance feature. A cash value will be provided to you when you buy whole life insurance. The attractive feature that provides liquidity for anything you need in whole life insurance is the one that is called a cash value. A paid up addition rider have to be added by those who would like to enjoy the benefits that life insurance offers. Paid up addition rider is essential because it also increased the overall policy growth and not only enriching the cash value of your policy.
When you decide to buy a whole life insurance policy you will be asked to buy also paid up additions riders separately by the insurance company. Because you buy your policy separately from the paid up addition rider, that’s why it is regarded additional insurance. When you buy a paid up addition rider, you enjoy a lot of benefits apart from enriching your cash value. Those who purchase an additional insurance like the one I have mentioned above do not undergo medical underwriting. Because of that reason, this additional feature benefits specifically those who have declining health. This guide should be read by those who would like to know more about paid up addition riders.
Paid up additions riders are purchased by those who buy whole life insurance policies because they serve as the best financial strategies. You should add paid up additions riders when you buy a whole life insurance policy and choose to use cash value as a strategy to finance other assets. Your cash value will grow slowly if you do not add such an additional insurance. Because of that reason, you should buy a paid up additional rider if you would like to increase your policy’s cash value.
Dividends are paid out by mutual insurance companies every year. Even though dividends are not guaranteed, a lot of mutual insurance companies have a history of dividend payout. Those who by whole life insurance policies from such companies are paid out dividends even during the great depression period. If you buy additional insurance such as paid up addition riders together with dividends, you can earn dividends every year. Those who are buying life policies are asked by insurance companies to add such additional insurance policies because they add value to your life insurance assets. Life insurance is a valuable living benefit also and not only offer death benefits when it is bought.