Cash Value & Paid-Up Additions

Cash value basics

In a whole life policy, a portion of your premium goes into the cash value — a savings-like account that grows tax-deferred and can be borrowed against.

Paid-Up Additions (PUA)

PUAs are an optional rider that lets you add extra money into the policy to buy small chunks of additional paid-up insurance. This has two effects:

1. Faster cash value growth — PUA premiums convert to cash value more efficiently than base premiums
2. Compounding death benefit — as your PUAs grow, so does your total death benefit

In an optimized IBC policy, the PUA rider is loaded to the IRS maximum — often 4–5x the base premium — to maximize cash value accumulation in the early years.

PUA End Year

Many policies are designed to stop PUA payments after a certain number of years (e.g., year 4 or 5) once the policy is sufficiently funded. VestmentPulse tracks this with the PUA End Year field so you know when your premium drops to the base-only amount.

Why it matters for IBC

The cash value is the engine of Infinite Banking. You borrow against it via a policy loan to fund investments, keep the money growing inside the policy, and repay the loan from investment returns — creating a cycle where your money works in two places at once.