This YouTube video (How to SUPERCHARGE Your WEALTH in Canada!, created/uploaded by Jayson Lowe on June 24, 2023) explains paid-up additions in life insurance. The speaker describes paid-up additions as incremental increases in the death benefit that are layered on top of a base policy over time, using a foundation/stacking-floor analogy to explain how the death benefit grows.
Paid up addition is essentially more death benefit that is built on top of your starting that benefit. So as the book says when it talks about paid up addition is an add on to your base policy. Your base policy is your starting death benefit that you get and on what the paid up addition does, it adds on to that death benefit. So again, going back to that analogy, so your foundation the base policy with the starting death benefit and then the slurs become the paid up addition that adds on a floor of death benefit on top of each other over time.
