Why Paid-Up Additions Capture Returns Most People Miss

150 million of net income, 75 million is distributed in the form of dividends. And let's assume for a moment that 5 million of that 75 was actually paid out in cash. Let's say that there's another 5 million that was left on deposit. And now we've got 65 million where the election was. Paid up additions. What is the insurance company going to do with that money? They're not going to let it sit still. They're going to put the capital to work. All the advantages of paid up additions that Rich just described. The other massive benefit is that the actual cash, the actual portion of that net income that never went anywhere, is being redeployed to go and earn more return on that invested capital. Only one group of people get the benefit of that return. Participating owners. There's no one else who receives a benefit.