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All About PUA Rider Flexibility | IBC Global, Inc - YouTube
Channel: Insurance Business Concepts (IBC) Global
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so PUA flexibility our PUA rider i like to refer聽
to it as a cash dump in so when i have a policy聽聽
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remember this is a life insurance policy that聽
we hear of when we think what fixed insurance聽聽
[25]
expense I pay the same amount every month or every聽
year we don't want that the goal is how do I take聽聽
[31]
this insurance policy which is typically just an聽
expense and turn it into a flexible savings asset聽聽
[38]
and the PIA way or cash contributions flexibility聽
is critical at least being aware of what company聽聽
[47]
or companies I am looking at or considering this聽
way I can understand the rules and I'm not told聽聽
[53]
no you can't make these contributions down the聽
row down the road because the company does not聽聽
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permit it that's the last thing I want so when聽
it comes to flexibility my two areas that I have聽聽
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with a policy or what where can my money go we聽
touch on this all the time I've got my premium聽聽
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my which often referred to as my insurance聽
expense and then I've got my PUA Rider cash聽聽
[80]
dumping now dollars that go to the insurance聽
premium component of a life insurance policy聽聽
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whatever that premium is it is a fixed dollar聽
amount meaning if I have a $5,000 base premium聽聽
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that's my insurance premium I cannot decide to聽
increase that to $50,000 now whatever I set it聽聽
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at it's fixed for the life of the policy doesn't聽
mean I have to pay it forever there's things I聽聽
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can do premium offset reduced paid up but I cannot聽
increase that premium I can't decrease it through聽聽
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a policy change I don't do that that often but聽
it is possible however it is a fixed premium聽聽
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it's not adjustable the feature the piece that聽
is adjustable are my cash contributions these聽聽
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are not required to be paid like premium dollars聽
I can add to the account or not add to the account聽聽
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dollars that go here going to cash first whereas聽
premium dollars go where death benefit first and聽聽
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eventually build cash you know our big thing how聽
do I Drive this down and drive this up to get more聽聽
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cash up front starting to earn interest right away聽
and have more money over the life of the account聽聽
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now when it comes to this piece this PUA rider and聽
in particular the flexibility here's what's going聽聽
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to determine my flexibility more than anything聽
else let's just put this in bold giant letters聽聽
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company this is going always to do have to do聽
with the company I select different insurance聽聽
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companies have different rules in respect聽
to the PUA Rider adding money into cash some聽聽
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will allow me to add money into PAS at leisure聽
meaning literally I can go on an online account
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hit a button that says pay now and just throw聽
money into cash very flexible often what they'll聽聽
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do is wherever have my premium they'll allow me to聽
contribute 10x that right into pee-wee's or into聽聽
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cash per year I've got to set the policy up so聽
I don't trigger a mech or anything like that but聽聽
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mean point online account I should put this word聽
here anytime now other accounts or other companies聽聽
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I should say have a bit more stringent rules right聽
so the most flexible is I can add money into the聽聽
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account anytime whether I send a check go on my聽
online account very flexible where others may聽聽
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allow us to adjust the amount but only to one time聽
per year so for example if year one I pay in 10k聽聽
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your two comes up and I want to pay in 50k some聽
companies will allow me to make that contribution聽聽
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at leisure like up here some will flat out say聽
no or if you want to add the money you have to聽聽
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go through medical underwriting and some will聽
say hey if you do this on your policy anniversary聽聽
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date and you make the proper adjustment we will聽
accept that contribution meaning I can adjust my聽聽
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pee ways I can paying more I can pay and less聽
if it falls on my policy anniversary dates so聽聽
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some are anytime some are on my anniversary date聽
and then lastly if I want to add money towards PU聽聽
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A's and it's random its unscheduled i bill it聽
with my premium when I first started a policy
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a lot of times there's underwriting involved聽
where I have to go through an exam very similar聽聽
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to what I went through when I first started聽
a life insurance policy and the reason why聽聽
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all right we get that question I had it when聽
I was new in the industry is if I'm giving an聽聽
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insurance company money why do they want to put me聽
through a medical exam give me a hard time to take聽聽
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my money seriously well the reason why is when I聽
contribute money into pu8 if I give them $10,000聽聽
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goes in the cash starts to yield returns that's聽
great but remember if I make APU a contribution聽聽
[360]
of 10 grand that goes where first cash what's it聽
also do for me buys me death benefit remember the聽聽
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term paid up additions it buys to be paid up聽
additional life insurance is paid up because聽聽
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there's no recurring premiums doing that if I put聽
in 10 I may get another 30 on average back in a聽聽
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life insurance benefit so a company will want to聽
know okay why are you throwing this money in all聽聽
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of a sudden did you find out you're just diagnosed聽
with the illness and something you're gonna die聽聽
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tomorrow you're trying to cash in that's the kind聽
of stuff they're looking at they want to make sure聽聽
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that they don't have this huge liability that聽
came out of nowhere and then some companies have聽聽
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rules if I set it up with the appropriate term聽
riders where I don't have to worry about going聽聽
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through underwriting and such so depending on the聽
insurance company we're not gonna go through all聽聽
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the companies on this video just because there's聽
a lot of information and we'll have that broken聽聽
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down in other segments but the biggest factor聽
again on PUA flexibility is company selection聽聽
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I want to be aware of the different insurance聽
carriers rules what they allow what they don't聽聽
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allow this way I don't have buyer's remorse and聽
run into limitations or restrictions down the road
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