Add Money To Your Bank, Anytime!

The ability to store money in our privatized banking policies is enabled by the use of Paid-Up Additions (PUA). PUAs are single premium plus-ups to our Cash Value and Benefit. In our policies, the Level Premium Paid Up Additions Rider is the tool we use.

When we set up your bank, the plan was to purchase PUA with every premium payment. But what if you want to put more into the bank? Especially when you want to repay yourself for policy loans at market (or better) interest?

PUA payments are always optional*, but they are essential to our banking plan for savings, financing, and additional compounding dividends. More PUAs means good news: You are giving your savings plan serious attention.

Here’s something that we haven’t talked about. PUA payments can be made at any time during the year. Within the first seven (7) years, the annual amount is limited to the maximum underwritten PUA level, which may be more than our planned PUA. After that, the maximum is set to the average paid in the first seven years.

So,

• If you have an unexpected windfall, put it in the PUA!
• If you have paid off your loan, but owe yourself more interest, put it in the PUA!
• If for any reason, you didn’t put in all the planned PUA in previous years, you can catch up on that too!

As soon as you are in a position to deposit more PUA, and if you have room in the policy, you can do it immediately. No need to wait for the next premium payment, whether is it annual or otherwise.

This is a great idea because you start earning dividends immediately. These dividends will be prorated to your policy anniversary (when annual dividends are credited to your cash value).

Along with paper checks and pre-authorized withdrawals, there are improved methods for moving these funds to your policy faster and easier using online bill pay and scheduled transfers. I’ll send more information on that soon.

If you have any questions on how to do this, please contact me.

*No matter what, always keep the PUA rider in-force with the minimum addition of $120 in years two and beyond. This article’s specifics apply to policies issued from Lafayette. Other companies’ rules will vary.