The Money Advantage Podcast

The Truth About Single Premium Paid-Up Additions (SPUA): How to Design Infinite Banking Policies With Wisdom, Not Hype


Listen Later

A few weeks ago, something special happened as we kicked off a podcast recording—Joe DeFazio held up a first edition copy of Becoming Your Own Banker by Nelson Nash. It had just arrived in his hands, passed down like a sacred trust.
https://www.youtube.com/live/4MpwxirBpGA
We weren’t in the same room, so Bruce and I couldn’t flip through the pages or feel its weight for ourselves—but even through the screen, we felt the gravity.
Because legacy isn’t just a word. It’s a responsibility. A principle to be protected. A baton handed from one generation to the next.
That moment with Joe sparked a powerful conversation—one that led us straight into one of the most debated and misunderstood topics in the Infinite Banking world: Single Premium Paid-Up Additions (SPUA).
So we hit record.
What This Article Will Help You UnderstandWhat Are Single Premium Paid-Up Additions (SPUA)?Why Single Premium Paid-Up Additions Sound So AttractiveThe Hidden Risks of SPUA-Focused Policy DesignWhat Nelson Nash Actually TaughtWhen Might Single Premium Paid-Up Additions Make Sense?Designing Policies with Stability, Not Just SpeedWhy This Matters to Your LegacyLearn More in the Full EpisodeBook A Strategy Call
What This Article Will Help You Understand
Whether you're new to Infinite Banking or already several policies in, the way your policy is designed will either set you up for long-term success or put you on shaky ground.
In this article, you’ll learn:
What a Single Premium Paid-Up Addition (SPUA) actually is
Why it’s used and how it can be beneficial in certain scenarios
The hidden risks of designing your policy with a large SPUA
The difference between short-term cash value and long-term capital building
What Nelson Nash really taught—and why his principles are more relevant than ever
How to make smart, future-focused decisions about your family’s financial system
This is for anyone who wants clarity, not confusion. Stewardship, not hype. And legacy, not just liquidity.
What Are Single Premium Paid-Up Additions (SPUA)?
Let’s define this clearly.
A Single Premium Paid-Up Addition, or SPUA, is a one-time lump sum payment you make into your whole life insurance policy. This premium increases your death benefit and creates immediate cash value—without any future obligation to continue funding that specific rider.
It’s often marketed as a fast way to “supercharge” your cash value in the first year of your policy.
But here’s what we want you to know: while that may be true in the short term, SPUAs come with trade-offs that must be understood before you jump in.
Why Single Premium Paid-Up Additions Sound So Attractive
In theory, Single Premium Paid-Up Additions are incredibly appealing:
You get immediate access to a large chunk of cash value
You avoid the need to commit to an ongoing payment
You increase the policy's death benefit right away
You can “jumpstart” the banking process sooner
If you just received a windfall—or you want liquidity right now—this can sound like the perfect fit. And that’s why it’s being marketed so heavily.
But we urge you: don’t just ask what sounds good today. Ask what still works 30 years from now.
Because when you dig into the details, you realize it’s not about how fast your policy can go. It’s about how well it can hold up when the storms come.
The Hidden Risks of SPUA-Focused Policy Design
Here’s where we need to slow down and talk about the bigger picture.
When a policy is designed to accept a large SPUA, a few things must happen under the hood:
The policy’s base premium is minimized
A significant term rider is added to prevent MEC (Modified Endowment Contract) status
The design often pushes the illustration right up to the IRS limits for tax-advantaged treatment
This creates a fragile foundation.
Think of it like this: if your policy is a sailboat, the base is the hull. The PUA is the sail.
...more
View all episodesView all episodes
Download on the App Store

The Money Advantage PodcastBy Bruce Wehner & Rachel Marshall

  • 4.7
  • 4.7
  • 4.7
  • 4.7
  • 4.7

4.7

60 ratings


More shows like The Money Advantage Podcast

View all
Wealth Formula by Buck Joffrey by Buck Joffrey

Wealth Formula by Buck Joffrey

405 Listeners

VINCE by Cumulus Podcast Network | VINCE

VINCE

63,015 Listeners

Main Street Business by Mark J Kohler and Mat Sorensen

Main Street Business

595 Listeners

The Jordan B. Peterson Podcast by Dr. Jordan B. Peterson

The Jordan B. Peterson Podcast

33,958 Listeners

Big Picture Retirement® by Devin Carroll, CFP® & John Ross, JD

Big Picture Retirement®

523 Listeners

The WealthAbility Show with Tom Wheelwright, CPA by The Rich Dad Media Network

The WealthAbility Show with Tom Wheelwright, CPA

513 Listeners

Life Success & Legacy by Life Success & Legacy

Life Success & Legacy

33 Listeners

BetterWealth with Caleb Guilliams by BetterWealth Media

BetterWealth with Caleb Guilliams

244 Listeners

Banking With Life Podcast by James Neathery

Banking With Life Podcast

77 Listeners

The Infinite Wealth Podcast by Infinite Wealth Consultants

The Infinite Wealth Podcast

55 Listeners

Wealth On Main Street by Richard Canfield & Jayson Lowe

Wealth On Main Street

11 Listeners

The Money Multiplier Podcast by The Money Multiplier

The Money Multiplier Podcast

27 Listeners

Wealth Warehouse by The IBC Guys via Podcast Principles

Wealth Warehouse

118 Listeners

Infinite Banking Mastery by Valerie LaRoque

Infinite Banking Mastery

21 Listeners

The Tucker Carlson Show by Tucker Carlson Network

The Tucker Carlson Show

15,381 Listeners