First, it the most important piece of making the Infinite Banking Concept and High Cash Value Life Insurance actually work!
Any money that goes into this Paid Up Additions Rider is money that is going into cash, not an insurance expense. These are the dollars that will begin earning interest immediately and that you have access to anytime.
Why is it called “Paid Up Additions?” It is additional in that, as a policyholder, you are billed for your insurance premium per year, but you are not billed for a PUA contribution. It is optional to pay into, and you can adjust how much you contribute to it. Technically, money put into this rider also buys you some life insurance as well. That extra life insurance is “paid up” because there is no recurring premium for that particular amount of insurance.
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