What Is Reduced Paid-Up (RPU) Insurance?
From The Money Advantage Podcast by Bruce Wehner & Rachel Marshall
March 16, 2026 · 1h 3m
About this episode
This episode explains the reduced paid-up option in whole life insurance and its implications for policyholders.
What Is Reduced Paid-Up (RPU) Insurance? Somewhere buried in your whole life insurance policy, there's a provision called the reduced paid-up option. Most people never think about it until they need to. And by then, they're usually Googling it in a mild panic. So let's get ahead of that. Reduced paid-up insurance is a nonforfeiture option written into every whole life policy. It gives you the right to stop paying premiums and keep a smaller, permanent death benefit, fully paid up, no strings attached, no further payments required. Your cash value funds the whole thing. https://www.youtube.com/live/ypC6twnNlsA What Is Reduced Paid-Up (RPU) Insurance?Key TakeawaysThe Short Answer: What Does "Reduced Paid-Up" Mean?How Does the Reduced Paid-Up Option Work?A Simple ExampleWhat Happens to the Cash Value?Reduced Paid-Up vs. Other Nonforfeiture OptionsWhen Might Someone Use the Reduced Paid-Up Option?Financial HardshipRetirementInherited policiesIntentional simplificationReduced Paid-Up Insurance and the Infinite Banking ConceptWhy IBC Policyholders Rarely Elect RPURPU as a Safety Net Within Your Banking SystemWhy Proper Policy Design MattersBook a Call to Find Out Your Next Step to Time…
People in this episode
Hosts: Bruce Wehner, Rachel Marshall
Topics covered
- whole life insurance
- reduced paid-up option
- financial strategy
- nonforfeiture options
- Infinite Banking Concept
Keywords
- reduced paid-up insurance
- whole life policy
- cash value
- financial hardship
- retirement
Mentioned in this episode
Books & works: What Is Reduced Paid-Up (RPU) Insurance?
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