What does paid-up status mean?
Paid-Up Status means a condition during the term of the policy, wherein the premiums have been paid in full for at least first few consecutive years, as required under the Plan, and the remaining due Premiums have not been paid rendering the policy to continue at a reduced level of benefits, as specified under the Plan ...
A paid-up life insurance is a life insurance policy that is paid in full, remains in force, and you don't have to pay any more premiums. It stays in-force until the insured's death or if you terminate the policy. Paid-up life insurance is only an option for certain whole life insurance policies.
Paid-up value indicates that your policy has received enough premium input to cover you till the policy tenure runs out even if you make no additional premium payments on the policy. You can choose to surrender such a paid-up policy and end the benefits so as to withdraw the money from the policy.
This means that beneficiaries will receive 100% of the death benefit amount. In addition, life insurance payouts can be used for any purpose, so beneficiaries can use the money to cover expenses related to the death, such as funeral costs or outstanding debts.
Definition of 'make a policy paid up'
If you make a policy paid up, you stop making premium payments into a life policy but still leave the coverage in place. If you stop paying premiums after 3 years, you have the option to make the policy paid up, provided the policy has accumulated sufficient policy value.
Fully paid up shares are those for which no outstanding amounts are due. All monies due to the company for the equity it has issued have been paid in full.
What happens to the cash value after the policy is fully paid up? The company plans to use the cash value to pay premiums until you die. If you take cash value out, there may not be enough to pay premiums.
With paid-up life insurance, it comes in two forms:
This means that your family will receive a portion of your death benefits if you die, but you will not have to continue to pay the premiums. Paid-Up Additions – Utilizing dividends that the policy earns to purchase additional coverage and grow additional cash value.
You can cash out a life insurance policy. How much money you get for it, will depend on the amount of cash value held in it. If you have, say $10,000 of accumulated cash value, you would be entitled to withdraw up to all of that amount (less any surrender fees). At that point, however, your policy would be terminated.
The correct term is either a deferred pension or paid up pension. With these so called frozen pensions, the policy holder or deferred member will not be able to make any further payments into it. The reason the term frozen pension is not accurate is because pension benefits are not actually frozen.
What does paid up certificate mean?
The paid-up membership certificate is a document that the provident fund has to issue to a member within two months of the fund knowing that the member no longer works for the employer.
A life insurance policy in which if all the premium payments are complete and the insured is free of all payment obligations, the policy stays intact until insured's death or termination of the policy is called paid-up policy.
adjective. paid in full, as of the present or of a specified date: a paid-up membership.