Maximize Tax Savings with PUAs: How Paid-Up Additions Supercharge Your Infinite Banking Strategy
March 12, 2025
If you’re using Infinite Banking to manage your cash flow and build wealth, you’ve probably heard the term PUAs (Paid-Up Additions). One of the most effective tools in this system, these extra contributions to your whole life insurance policy can accelerate cash value growth, boost dividends, and even provide a smarter way to save for and pay taxes.
Instead of letting tax money sit stagnant in a low-interest bank account, PUAs allow it to grow and work for you—all while keeping it liquid and accessible.
What is a Paid-Up Addition (PUA)?
A Paid-Up Addition (PUA) is an optional extra premium payment that increases the cash value and death benefit of a whole life insurance policy. Unlike regular premiums, PUAs are fully paid upfront. This extra contribution immediately increases your cash value and buys additional death benefit, which is why it’s called a “paid-up” addition—it’s fully paid for upfront.
Why PUAs Matter in Infinite Banking
- Boosts Cash Value Fast – PUAs go directly into cash value, making more money available for borrowing and investing.
- Accelerates Policy Growth – Supercharges the policy’s ability to accumulate long-term wealth.
- Earns More Dividends – PUAs increase dividend potential, compounding wealth faster.
Since PUAs enhance cash value quickly, they’re a game-changer for those using Infinite Banking to maximize financial efficiency.
How PUAs Help with Paying Taxes Using Infinite Banking
Traditional tax-saving strategies often involve setting aside money in a business bank account. While this ensures taxes are covered, it also means:
- The money sits idle, earning little to no interest.
- Inflation erodes value over time.
- No leverage opportunities—funds are unavailable for investment or business growth.
By storing tax savings inside an Infinite Banking policy with PUAs, that money stays liquid, growing, and working for you while remaining accessible when needed.
How to Use PUAs for Tax Payments
- Redirect Tax Savings – Instead of parking tax money in a bank, contribute it as a PUA to your policy.
- Increase Cash Value – The cash value grows immediately, boosting available capital
- Pay Taxes with a Policy Loan – When tax season arrives, borrow against your policy instead of withdrawing from savings.
- Repay the Loan + Interest – Treat the policy loan like a real loan, repaying it with an additional 5-10% interest to keep your system strong and growing.
This approach keeps money inside your financial ecosystem, ensuring it continues compounding and earning dividends—even when used for tax payments.
Why This Strategy Works So Well
- Total Financial Control – Money stays inside your policy, not locked away in a traditional bank.
- Continuous Growth – Policy cash value continues earning interest and dividends, even when leveraged.
- Long-Term Wealth Accumulation – PUAs supercharge cash value, allowing the same money to be used repeatedly.
Instead of losing money to taxes, Infinite Banking with PUAs turns tax savings into a long-term wealth-building strategy.
Final Thoughts
Instead of allowing your tax money to remain idle, utilize cash value within your Infinite Banking policy to put it to work. This approach enables you to efficiently pay taxes, continue growing your money, and accumulate long-term wealth simultaneously. By leveraging cash value, business owners and investors can efficiently pay taxes, increase wealth, and reduce their stress during tax season.
