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Blog 65 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 4

The most common dividend options for dividend-paying whole life policies are paid-up additions, paid in cash, reduce premium, and accumulate at interest.

Of the four options, paid-up additions will produce the most amount of cash value and will also increase the amount of death benefit. The reason is that you purchase paid-up additions which earn dividends which then purchase more paid-up additions resulting in a compounding effect or exponential growth in the amount of cash value as well as in the amount of death benefit.

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Blog 64 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 3

A flexible paid-up additions rider allows the policy owner to increase or decrease the contributions to the paid-up additions rider within a range specified at policy issue. The policy owner is free to make these adjustments at any time during any payment period of the policy.
The level paid-up additions rider does not provide the same flexibility to adjust the premium going towards it. The level paid-up additions rider assumes that the policy owner will pay the same amount year-over-year towards the rider. If the policy owner reduces the premium going to this rider, that reduction can become permanent.

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Blog 63 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 2

To use dividends to purchase paid-up additions, you just elect the paid-up additions dividend option.
The other way to purchase paid-up additions is through an elective rider. You choose this rider and make payments to the rider to purchase paid-up additions with your own money. Essentially, you elect to pay the insurance company more money than it requires to.

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Blog 62 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 1

In this blog we are going to concentrate in the definition of paid-up additions and in future blogs we will be going deeper into the types of paid-up additions riders and how to use them to maximize the cash values of your whole life policies.

Paid-up additions are mini paid-up whole life policies that attach to your base whole life policy. 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.

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Blog 61 – Happy New Year, Happy New Decade

Although you may be discouraged of your progress in some areas, we are sure that you will be proud of your accomplishments in other areas, and perhaps one of them for many of our clients is your success towards achieving financial independence.

We define financial independence as a financial situation in which you have enough money set aside to take care of unexpected financial challenges and also enough money to take care of opportunities that become available to us. Believe us, when you have money available, opportunities are constantly knocking at your door.

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