Whole Life Insurance
What are paid-up additions in whole life insurance?
Paid-up additions (PUAs) are additional amounts of whole life insurance purchased with dividends or extra premium payments. PUAs increase the death benefit and cash value of the policy. PUAs are fully paid-up — they do not require additional premiums. PUAs are the most common dividend option for participating whole life policies.
Key Points
- PUAs: additional whole life insurance purchased with dividends or extra premiums
- Increase the death benefit and cash value
- Fully paid-up: no additional premiums required
- Most common dividend option for participating whole life policies
- An independent agent can help you understand PUAs and dividend options