A paid up life insurance policy is one for which no more premiums must be paid. If death were to occur, the death benefit would be paid to the beneficiary named in the policy, even though premiums had not been paid since being notified of the policy being a paid up policy.
Paid up in life insurance mean no premiums required to keep the death benefit in force.
So when you see something referred to as paid up life insurance, it means that the death benefit requires no more premiums to remain in place, and will never require premiums in the future to keep the death benefit in place.
A paid up life insurance policy is exactly what it sounds like - it is a policy that is all paid for. Therefore, no more premiums are due while the policy remains in force and the death benefit will be paid upon the death of the insured.
These usually are an option when someone stops paying on a whole life policy before age 100. The premiums that the insured has paid up to that point are used to purchase a "paid in full" policy, of course with a lower death benefit than the original policy was offering.
For more information connect with me at: www.PaInsuranceMadeEasy.com
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So when you see something referred to as paid up life insurance, it means that the death benefit requires no more premiums to remain in place, and will never require premiums in the future to keep the death benefit in place.
These usually are an option when someone stops paying on a whole life policy before age 100. The premiums that the insured has paid up to that point are used to purchase a "paid in full" policy, of course with a lower death benefit than the original policy was offering.
For more information connect with me at: www.PaInsuranceMadeEasy.com