Blog 77 – Get More Cash Value With Unscheduled PUAs

Infinite Banking Concept (IBC) policies or high cash value whole life insurance policies are designed with three well-known components: 1) the base whole life policy, which we make as small as possible depending on the life insurance company restrictions, 2) then in order to minimize the cost of the death benefit necessary to satisfy the MEC regulations, we use a term insurance rider that helps obtain part of the necessary death benefit at a lower cost than having the necessary total death benefit depend only on the base whole life policy. This term insurance rider is typically a blended One-Year Term-PUA rider that uses dividends and PUAs to completely convert the One-Year Term to whole life insurance, and 3) the Paid-Up Additions (PUA) rider.

Money TreePaid-up additions are mini paid-up whole life policies that attach to your base whole life policy and they themselves generate interest and dividends. They have a death benefit and a cash value and as its name implies, they require just one single premium payment, and they are forever paid-up. In other words, you keep the death benefit of the paid-up additions and its cash value without ever paying any additional premiums.

We should notice that Paid-Up Additions riders can be either scheduled or unscheduled. Scheduled PUAs are included in the monthly or annual premium that you pay for your IBC policy. The unscheduled PUAs are less familiar to many IBC practitioners, but they shouldn’t be. These are PUAs that we can add to our IBC policies when we have an excess of cash via a bonus or a windfall. They are limited by the difference between our annual premium payment and the 7-Pay or MEC limit and they increase your cash value as much as the Scheduled PUAs.

If you have any doubts as to how much you can contribute in Unscheduled PUAs to your policy, call the insurance company, or contact us and we will assist you. We realize that many practitioners are not aware of the tremendous advantage of Unscheduled PUAs in increasing the cash value in their IBC policies.

If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at  or feel free to email us your questions at or call us toll-free at 1-844-443-8422.

Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners

We are experts in designing high cash value dividend-paying whole life policies.


Blog 77 – Get More Cash Value With Unscheduled PUAs

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