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What is a PUA, or paid up additions rider?

Knowledge Vault > Section - FAQ Continuation > What is a PUA, or paid up additions rider?

First, it's the most important piece of making a 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 any time. That's why corporations stuff as much money as they can into the PUA rider!
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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