Paid-Up Additional Insurance (PUA)

Paid-Up Additional Insurance (PUA) in Indexed Universal Life (IUL) policies is a significant feature. Its core aspects:

• Additional Coverage: Provides extra life insurance coverage, fully paid with a one-time premium.
• Death Benefit and Cash Value Increase: Boosts both without raising ongoing premiums.

Investment and Growth:

• Potential Index-Based Growth: The cash value of PUA may grow according to the performance of a chosen index, like the S&P 500.
• Guaranteed Minimum Interest Rate: Ensures a baseline return.

Strategic Use:

• Enhancing Cash Accumulation: Utilised to maximise cash value growth in IUL policies.
• Tax Advantages: Helps maintain the policy's favorable tax status.

PUA is a strategic tool for policyholders aiming to augment their policy's value and benefits while leveraging potential market gains.