Welcome to STRATEGIC WHOLE LIFE (formerly The Fifth Edition) by Infinite Banking Authorized Practitioners.

Don't Separate Base Premium and PUA When Buying Whole Life Insurance

In episode 87, we talk about the risks of looking at base whole life premium and paid up additional life insurance (PUA) as separate considerations during the buying process.

Treating base premium as the baseline commitment and PUA as a 'stretch target' can lead to unfulfilled expectations and potential policy underperformance or worse... We highlight the importance of setting a sustainable and comfortable premium level, advising against making PUA a stretch goal. This concern is especially relevant during the early years of a policy, and when the policy is designed for high PUA to base premium ratios.

What should you consider instead? Tune in to find out!

00:07 Understanding Base Premium and Paid Up Additions

00:54 The Dangers of Overcommitting to Premiums

02:09 Components of a Whole Life Insurance Policy

03:30 The Risks of Making PUA a Stretch Target

04:22 The Impact of Not Paying PUA

07:19 Agents and Commissions

08:40 Designing a Sustainable Premium

09:35 Determining the Correct Premium

11:20 Conclusion and Next Steps