YOU ASK:
What is the definition of Paid-Up Policy?
WE ANSWER:
A Paid-Up Policy is a life insurance policy where premiums are all paid up and the insured person continues to enjoy insurance coverage without having to pay for further premiums.
In most cases, life insurance policies have a required premium payment period. When the policyowner has faithfully paid all the premiums in this period, the policy is already paid in full. The policy will continue to provide the insured with coverage until the policy matures, or the insured dies or when he cancels the policy (at which point he will receive the policy's cash value).
There are some who offer their products with a limited paying period, geared towards the needs of their clients and their capacity to pay.
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More insurance terms around paid-up policy:
- Partial Disability
- Participating Policy
- Pay-At-The-Pump
- Payout Options
- Pension Benefit Guaranty Corporation
- Pension
- Per Capita Beneficiary Designation
- Per Stirpes Beneficiary Designation
- Peril
- Period Certain
- Paid-Up Additional Insurance Option
- Package Policy
- Over-The-Counter (OTC)
- Original Equipment Manufacturer Parts (OEM)
- Ordinary Life Insurance
- Ordinance or Law Coverage
- Options
- Operating Expenses
- Open Competition States
- Ocean Marine Insurance