Jayson Lowe explains that a PUA is extra death benefit bought with dividends at no cost to you, while the base policy is your original coverage amount. Understanding how to reinvest dividends into PUAs lets you increase protection without spending more money.
What's the difference between the PUA and the policy itself? This is addressing the mechanics of the policy. So a paid-up addition is an addition to the death benefit of the insurance policy that is fully paid up. So what clients are doing with their annual dividends, for example, they're chunking them back into the policy to buy paid-up additions at no additional cost. The policy is itself the original starting death benefit of the insurance policy. That would be the face amount or the starting death benefit, and every addition to the death benefit is a paid-up addition, provided that the policy owner is educated to manage the contract that way.
