Whole Life insurance is a unique vehicle for your money. How can this be, when typically life insurance is thought of as a product needed only for when you (cough cough) croak? The reason is that with Whole Life you get immediate living benefits (including a cash value), and a death benefit. Owners of whole life insurance policies maximize the living benefits from their policies in any way they see fit. For instance, if you need financing for a car, new home or college tuition, you can easily borrow from your policy, not a bank.
What is (APUAR) or Annual Paid Up Addition Rider?
A Paid Up Addition is an additional set of terms added to your original whole life insurance policy that helps you customize the policy to suit your needs. Because the purpose of riders offer additional individual benefits to you, the rider is charged as an extra premium.
Benefits of APUAR
Paid Up Additions are so valuable because it immediately increases the cash value of your whole life policy, which then increases the guaranteed death benefit. Paid Up Additions Riders provide the holder with additional protection and provisions. There are many advantages to adding Paid Up Additions, one being that it adds immediate policy growth. A good insurance agent will always consider the use of riders when structuring your whole life policy to increase your protection and benefits.
What Makes a Paid Up Addition Annual?
When a PUAR becomes annual, or (APUAR), it simply refers to how you decide to pay your premium. For instance, your rider payment is scheduled in conjunction with the same method as your policy’s premium-annually, semi-annual, quarterly or monthly, and is combined in the total premium amount that is due.
Deciding if an Annual Paid Up Additions Rider is Right for YOU
The best way to determine if Paid Up Additions are right for you is to get clear about your financial needs today and in the future. Meet with a Paradigm Life agent and get your free in-depth analysis on PUA riders.