The most important element to utilizing the Infinite Banking Concept with Whole Life Insurance is the Paid-Up Additions Rider, or PUAR. When adding this rider to your policy, you are able to quickly maximize the cash value.
What is a Paid-Up Additions Rider (PUAR)
Specifically, the Paid- Up Additions Rider is additional insurance coverage that is purchased separately from your policy. By utilizing this rider option, a policyowner is increasing both the living and death benefits, along with an increase in cash value.
Just like the face value (death benefit) of a Whole Life Policy builds over time, so does the Paid-Up Additions. This means that each year, your cash value grows, as well as your potential dividend.
Another benefit to the Paid-Up Additions Rider, is that by purchasing it, you are increasing your overall insurance coverage without having to go through further medical underwriting.
PUAR and Infinite Banking
Permanent Whole Life Insurance, or “modified” Whole Life Insurance, is used to facilitate the privatized banking process by adding an increase of cash value through effectively using the Paid-Up Additions Rider. This rider provides an acceleration of cash value growth, which grants immediate borrowing and financing power.
For instance, if you are looking to invest in Real Estate or purchase a home or car, borrowing from the insurance company with a policy loan is what overcomes your money’s opportunity cost. While you are financing investments or purchases with a policy loan, your cash value stays intact, yet still earns a rate of return.
By effectively using a Whole Life Insurance Policy (built with a Paid-Up Additions Rider) you are able to earn interest, incur protection from the market, and have access to liquidity. This type of privatized banking with Whole Life Insurance, allows your money to be put into motion, creating velocity and augmenting wealth.
Unlock Your Money’s Potential
Instead of giving your money to a bank that makes a significant profit through fractional reserve lending, you can make a profit while maximizing your dollar inside of a Whole Life Insurance policy.
Using a properly structured Whole Life Policy, via Paid-Up Additions, as a private banking system not only helps to maximize your money’s potential but you also receive a death benefit, which adds additional protection to your family and estate.
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