So, you’re purchasing a whole life insurance policy specially designed for cash accumulation, and you’re wondering how much money exactly is going to be available within the policy during those first few years. If that sounds like you stick around to the end of this blog post because today we’re going to do a deep dive and you’ll know exactly what to expect going forward. The first step is understanding how the policy is designed and the three key components.

  • The first is the base policy. It’s the actual whole life insurance policy within your contract. And with that, during the first few years, there’s not going to be much cash accumulation. But that’s why we have the other two components.
  • The second component is the term rider. And with the term rider, we increase the death benefit, but it allows us to put extra cash within the policy.
  • And the third piece is a paid-up additions rider. And that’s where the actual cash value is growing, in that paid-up additions rider. 

So again, the three components are: the whole life policy, which allows us to do all of this magic, the term rider, which allows us to stuff more money into the policy, and then the paid-up additions, which are actually the equity that we get in the early years. 

And it could be thought of as a single premium whole life policy under the cover of a term policy within the whole life policy. So, as we mentioned earlier, the base policy and that term rider, they’re not going to have much cash availability within those first few policy years. But with the paid-up additions rider, the amount that you’re contributing to the rider on a monthly or annual basis, you can expect about 85 to 95% of that to be available immediately for access via policy loan. You see, that’s the money you could access to pay off debt, make a major capital purchase like a car, a wedding, a vacation, or use to take advantage of an opportunity that presents itself. 

So, here’s the key: With or without the riders, the paid-up additions, and the term rider, the whole life insurance policy would eventually become efficient. After the first few years, that base policy is going to become efficient and generate cash value within itself on a guaranteed basis. But, the paid-up additions rider allows us to supercharge the policy so you have immediate access to cash value. 

And keep in mind, when Nelson Nash discovered the infinite banking concept, there was no such thing as paid-up additions riders. So, he was looking at it purely from a perspective of a base policy, and he was starting policies out that had no cash for two or three years. And that’s the key. He was thinking long-term.

You see, this is a long-term concept that will put you in control of your money, your cash flow, and, ultimately, your life. So walk away from this blog knowing this, you’ll have access immediately to 85% to 95% of whatever you’re contributing to that paid-up additions rider, whether it’s on a monthly basis, an annual basis, or a one-time jump in. But also keep in mind that the longer you have the policy, the better it gets. And because of that, over time, you’ll have access to more and more of the money you put in, as well as the earnings on that money. 

Additionally, you have to keep in mind that as that base policy matures, the paid-up additions rider may not make sense anymore. So you’ll want to look at this in a few years. And then once we drop that paid-up additions rider, you may want to start a new policy and begin this process all over again. 

If you have a policy and you’re wondering how to access the cash or what the growth is like within it, be sure to visit our website at Also, if you don’t have the policy and you’re thinking about starting one, we’d be happy to help. You can schedule your free strategy session at today.

And remember, it’s not how much money you make, it’s how much money you keep that really matters.