Willetta Munhall: Some policies increase the coverage the longer you make the payments. At this point, my wife's policy increases more each year than the payments we make. They are giving her credit (interest) on the principle. We could stop paying and the coverage would stay in effect but would stop growing.
Rona Espalin: Legal fraud! No sir. Act of God
Sharolyn Claybourn: Paid Up Insurance
Gertrude Darke: Got a letter saying my mother has a paid up policy. She passed away 19 years ago. Does that pay interest?
Antonette Shappy: The meaning of a paid up life insurance is that your whole life policy having no additional premium payments due.Take careTarsha...Show more
Inez Relihan: Why would I receivea letter that my policy, life insurance, has been switched to a reduced paid up policy, when I don't believe premiums are due yet--which know I have till end of march to pay before policy lapses so would they or could they just do this w/o noti! fying me first, and what does a reduced pay up policy mean? Then says I can surrender cash value of 200 and something, and amount of policy has been decreased to 800, as opposed to 100,000 which I had the face value of the policy at. That means now am only insured for $800?...Show more
Travis Colomb: Paid Up Life Insurance
Barrett Zheng: It means that you have some form of a whole life (vs. term) insurance policy. Google "whole life insurance."
Pam Rampadarat: Richard Lee and Roger Roberts posted the same question. You should read their answers side by side.
Flor Lizardi: When a life insurance policy requires no future premium payments but still provides coverage, it is called paid-up life insurance or a paid-up policy. Paid-up insurance is a non-forfeiture option in many life insurance policies, meaning that there is a reduced amount of the death benefit that your beneficiary can receive from the policy even if you stop making premium payments.
Perry Deshazior: better you consult all your doubts with ! your agent. I am sure he can clear all of your doubts.
Luis Farlow: My dad had a life insurance policy that said paid up policy, that he paid on for 47 months years back they just sent me a check for 91.00 that has FBO on it what does this mean ???
Rose Krouse: It means insurance make all the money and good luck to you.
Kassie Kay: after three year premium paid and then we not pay premium next two year then policy went in paid up . And at the time of maturity insurance company pay three year paid premium money+vested bonus am I Right ?
Renita Sefton: The basic definition of Paid-Up Insurance for life insurance means that all the premiums have already been paid, with no further premium payment due.However, in this case, it sounds like you have a certain amount of life insurance coverage that is fully paid-up, perhaps a permanent life insurance policy.You may be paying additional premiums for a portion of your life insurance that is term lfie in! surance, that is not paid up.ROP Life Insurance means return of premium life insurance. This coverage is usually purchased as term life insurance. If you outlive the term or period of the life insurance coverage, you get the premiums back.You may want to check your life insurance policy and the terms and definitions listed in the back of the policy.Or, you could contact your life insurance agent and ask for an explanation, or write the insurance company and ask for the meaning of paid up life insurance as it relates to your policy - ask for it in writing for your file.I hope that helps! Best of luck to you....Show more
Elli Esaw: If you take it literally, it means the life insurance is paid up and you don't have to pay any more premiums.But the insurance industry tend to twist the definitions. For example, a dividend is suppose to mean a company has made profits and share those profits to its shareholders as a dividend. But in life insurance, a dividend really means t! hat you have overpaid your premiums and the insurance company refund th! e excess amount to you.So, the term "paid up" in life insurance really mean that you have built enough cash value where you don't have to pay your premiums for awhile. The catch is, your life insurance is still enforced and someone has to pay the annual premiums. So the insurance company takes money from your cash value to pay for it. If you die someday, your family will get the death benefit MINUS whatever cash value was taken (including the interest charged on the cash value). When your cash value is near depletion, you will get a letter that your life insurance policy is in endangered of being lapse. If you do not pay the premiums, you will lose coverage....Show more
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