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Glossary > P > "Paid up policy" Definition

Paid up policy

In the USA, a life insurance policy where all premiums have been paid. This may be a policy where premiums are paid for a set number of years after which it is deemed paid up although continuing in force. In the UK, this is cancellation of premiums for a life assurance policy during the policy term where, instead of the policyholder applying for the cash value, he/she elects to leave premiums paid to date as a paid up policy which will give reduced benefits at maturity.

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Paid up policy - In the USA, a life insurance policy where all premiums have been paid. This may be a policy where premiums are paid for a set number of years after which it is deemed paid up although continuing in force. In the UK, this is cancellation of premiums for a life assurance policy during the policy term where, instead of the policyholder applying for the cash value, he/she elects to leave premiums paid to date as a paid up policy which will give reduced benefits at maturity.

Paid up policy : in the usa, a life insurance policy where all premiums have been paid. this may be a policy where premiums are paid for a set number of years after which it is deemed paid up although continuing in force. in the uk, this is cancellation of premiums for a life assurance policy during the policy term where, instead of the policyholder applying for the cash value, he/she elects to leave premiums paid to date as a paid up policy which will give reduced benefits at maturity.