all right so our PUA rider we're gonna explain this in detail exactly what it is and how it works
so we've heard often if we've looked at website marketing spoken with agents that the PUA rider
is the most important piece to make the infinite banking concept or high cash value life insurance
policies work right if we want a cash-rich policy we do need this right so what is it let's actually
break it down so what it stands for is paid up additions right will often translate it to cash
right if I put a dollar into my PUA rider what it is is really just a cash contribution we can
call it a cash dump in I'm dumping money into cash right how it works from a transactional
standpoint with our insurance policy is if we pay in let's say a thousand dollars right into our PA
rider what happens is first that is deposited into our cash value right you'll see just about
a thousand dollars go in the advantage to this is this is money that begins to earn interest
immediately the guaranteed rate any dividends this is also money we can access immediately
it is there for us it accelerates the growth makes these accounts really work copies what
a lot of major banks and corporations do with these now why is it called paid up additions
or what happens here is if I dump in a thousand dollars into paid up additions yes it goes into
cash but it also buys me more life insurance DB represents death benefit this does depend
on my age right but typically the average is is if I pay in $1,000 into cash that will buy me
another $3,000 of death benefit or the proper way to explain this is that thousand dollars
purchases me another three thousand dollars of paid up additional life insurance right so what
that means is when I have a life insurance policy and I'm making contributions this key this rider
is critical the other way to pay money into the policy we all know this term is through
our insurance premium right call it our base premium now that premium on a life insurance
policy is due each year yes we cannot pay it we can cut it off with what's called a reduced paid
up maybe it's only due for a couple years but no matter what for some period of time that premium
is due it's a thousand dollars each year that is billed to the policyholder pay that thousand
dollar premium the paid up edition's rider our cash dumping is much more flexible it is
not billed we can set it up where it is billed but we can adjust it up and down right so the
premium dollars always buy us death benefit and eventually build cash but they're meant
to first satisfy the life insurance aspect that's what we want to be aware of the paid up additions
feature goes in the cash does buy a some life insurance but it's called paid up because those
cash contributions are optional we can add them if we want to but if I give the company again
we'll use this thousand dollar example that extra three thousand dollars of life insurance is paid
up because there's no recurring premiums paid up means I'm not going to get a bill to pay that same
thousand dollar cash contribution each year so hope that helps know this can be confusing the
most important piece if we don't care about the details is adding money to this piece this PUA
rider cash gets money in the cash starts to earn interest right away this how we really really
breakeven very early and have the highest returns possible on a cash value policy hope this helps