A Paid-Up Additions Rider is an addition or ‘add on’ to an insurance policy. Insurance riders can add additional benefits and help customize the original insurance policy to the unique needs of the purchaser.
The Paid-Up Additions rider is one of the most popular insurance riders and can be used to increase the living benefits found within an Insurance policy. In being one of the most popular riders for insurance policies today, it is important to understand what a Paid-Up Additions Rider (PUAR) is, and what type may be the best fit for you and your specific situation and desired goals.
Annual Paid-Up Additions Rider (APUAR)
The Annual Paid-Up Additions Rider is a rider that is scheduled similar and in conjunction with the policy premium in the same method or mode (ie annually, semi-annual, quarterly, monthly) and is combined in the total premium due amount.
Single Paid-Up Additions Rider (SPUAR)
The Single Paid-Up Additions Rider is a rider that can be schedule (usually with the initial premium paid, 1st year premium), or as an unscheduled addition to the insurance policy after the first year premium.
(If an unscheduled Single Paid-Up Additions Rider is purchased it usually would require notifying the insurance company to see if any additional underwriting would need to take place).
Additional Living and Death Benefits
The appeal of utilizing the Paid-Up Additions Rider is the benefits – living and death that one receives with its addition. Most life insurance companies offer Paid-Up Additions Riders, with each having slight variations from one another.
Paid-Up Additions are an often overlooked tool when setting up life insurance policies, and the reason is because many insurance professionals do not understand the benefits and reasons why one should consider adding one to their policy.
The unique versatility of a Paid-Up Additions Rider and how it can enhance integral parts of an insurance policy require that you need to consult a life insurance professional that understands how Paid-Up Additions Riders influence the original life insurance policy.
Further Reading– The Whole Truth About Whole Life