Paid-up additional insurance refers to additional life cover purchased within certain cash-value policy structures, often discussed in US participating whole-life literature. It is a feature of a specific contract, not a general Australian insurance entitlement.
The distinction that matters
Paid-up additions, dividends and a fully paid-up base policy are different concepts. An illustrated future addition is not necessarily guaranteed or available under an Australian product.
What to check
- Whether the feature exists in the policy.
- How additions are purchased or credited.
- Guaranteed versus illustrated values.
- Effect on surrender value, benefits and charges.
Example to discuss
Ask for the existing contract’s schedule of additions and guaranteed values rather than applying a US illustration to a different life policy.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an explanation of terminology found in overseas life-policy material. It does not establish that a similarly named product is currently offered in Australia, or that US guarantees, tax treatment or legal rules apply here.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.