Grow Your Policy After Year 1
Want to grow your policy faster?
While there are rules about overfunding in year one of your banking policy that you’ll want to follow, this article will be focused on what happens if you want to add additional PUA (Paid Up Additions) after year one.
After year one, you can put more PUA into your policy contract up to a certain threshold. If you reach or go beyond this threshold, you’ll create a MEC (Modified Endowment Contract). At this point, your banking policy stops serving you for the purposes you originally intended.
(Learn more about MECs and overfunding in year one here.)
But you can get very close to that threshold with extra PUA after year 1 when you have extra funds and with the help of your Money Multiplier Mapping Specialist. An immediate benefit of PUAs is that those additions turn into cash value nearly dollar for dollar and that means there is new money compounding in your banking policy, forever. And you’ll have the ability to borrow that money immediately. Paid Up Additions buy you more premium. Which also buys you more death benefit and more cash value. You’re winning on every level.
More Benefits to PUA
Extra premium can mean more of a dividend for you as well, depending on the insurance company that you’re contracted with. The insurance companies will tell you the limit, any time. So be sure to call their customer service to get the updated specifics at any point.
The more premium you can fund with, the better, and PUAs are part of that.
