Paid-Up Additional Insurance

Paid-up additional insurance (PAU) is a type of permanent life insurance that provides additional coverage for a set amount of time. PAU is typically purchased as a rider to a permanent life insurance policy, and it can be used to increase the death benefit or provide coverage for a specific period of time, such as until a child reaches a certain age.

PAU is paid for in a lump sum, and once it is purchased, the policyholder no longer has to make any additional payments. The death benefit of the PAU rider will remain the same regardless of how long the policyholder lives, and the policy will not lapse if the policyholder stops making premium payments.

There are a few things to keep in mind when considering PAU. First, the cost of PAU will depend on the amount of coverage you want and your age. Second, PAU will reduce the cash value of your policy, so you will have less money available to borrow against or withdraw if you need it. Third, PAU is not a good investment, so you should only purchase it if you are confident that you will need the additional coverage.

If you are considering PAU, it is important to talk to your financial advisor to make sure that it is the right choice for you.

PAU can be a valuable way to increase the death benefit of your life insurance policy. However, it is important to understand the costs and benefits of PAU before you make a decision.

Here are some of the benefits of PAU:

* PAU can provide additional coverage for a specific period of time, such as until a child reaches a certain age.
* PAU is paid for in a lump sum, and once it is purchased, the policyholder no longer has to make any additional payments.
* The death benefit of the PAU rider will remain the same regardless of how long the policyholder lives.

Here are some of the drawbacks of PAU:

* PAU can be expensive, especially if you want a large amount of coverage.
* PAU will reduce the cash value of your policy, so you will have less money available to borrow against or withdraw if you need it.
* PAU is not a good investment, so you should only purchase it if you are confident that you will need the additional coverage.

If you are considering PAU, it is important to talk to your financial advisor to make sure that it is the right choice for you.