Paid-Up Additions Riders (PUAR)

Paid Up Additions RidersThe Paid-Up Additions Rider is an important component to maximizing cash-value within whole life insurance and is a vital component when structuring an Infinite Banking policy. As a result of its importance, the PUA Rider must be properly added to a policy as well as explained by an experienced professional that fully understands its benefits and limitations. Let’s first define what the Paid-Up Addition Rider is and the variations that exist within this insurance rider family.

Paid-Up Additions Rider

The Paid-Up Additions Rider is added to a whole life insurance policy that purchases “Paid-Up Insurance”. Paid-up insurance is insurance that is fully paid and requires no new premiums. The PUA Rider creates immediate cash value in the policy.

Annual Paid-Up Additions Rider (APUAR)

The Annual Paid-Up Additions Rider allows for annual payments into the PUA rider. It is often referred to as a scheduled PUA.

Single Paid-Up Additions Rider (SPUAR)

The Single Paid-Up Additions Rider allows for a one-time payment into a PUA rider and is often referred to as an unscheduled PUA. This traditionally occurs when a policy is initiated but can also occur while the policy is in force.

Vital Piece of the Puzzle

The utilization of the Paid-Up Additions Rider with traditional whole life insurance creates more flexible terms and immediate cash value.  It also accentuates whole life insurance’s century-long track record of guaranteed growth and living benefits.

The PUA Rider is a vital component of a properly designed Infinite Banking policy. The understanding of this rider is paramount. Due to the effect the PUA Rider has on the death and living benefits of a whole life policy, it is vital the insurance professional understand how PUA Riders work and how to properly use them.

In large part to Nelson Nash’s book Becoming Your Own Banker” and many others written thereafter, Infinite Banking is becoming well known. As our economy continues to exude uncertainty, alternative ways to save money is on the mind of many, as traditional vehicles have become too risky.

If you are contemplating the use of the Infinite Banking Concept in your personal finances and are searching for a competent advisor and company to educate and support you, keep in mind that in order for the Infinite Banking Concept to work properly, the insurance policy must be set up with the proper use of the PUA Rider.

To learn more about Infinite Banking and PUA Riders contact us at 1-800-870-8670 or by e-mail at

Patrick Donohoe

Patrick Donohoe (45 Posts)

Patrick is the President and CEO of Paradigm Life. Patrick started Paradigm Life in 2007 to teach investors, business owners, professionals and families on sound financial principles. He is a firm believer that the more someone is educated, the better financial decisions they will make and the more financially free they will be. Patrick created a unique educational process which is conducted virtually by way of video webinars. Patrick is also the host of Paradigm Life’s podcast which has been on the air since 2007. Patrick grew up in West Hartford, Connecticut and moved to Salt Lake City in 2003 to attend the University of Utah and subsequently graduated with a BA in Economics. He enjoys spending time with his family and friends. He enjoys playing ice hockey and is an avid participant in CrossFit. Patrick currently resides in Salt Lake City, Utah, with his wife and their three children.