yes

A paid up insurance policy is a life insurance policy under which all life insurance premiums have already been paid, with no further premium payments due on the policy.

If you are talking about Life Insurance, Paid Up, means the Life Insurance no longer needs Premiums paid as it is all paid up to sustane the policy for the duration chosen.

are paid up insurance proceeds paid to the living person insured taxable

Paid up additions is a method of receiving your dividends from a mutual insurance company. Paid up additions is actually a very good method as it allows a policyholder to use their dividends to purchase paid up additional insurance in the policy thereby increasing coverage and increasing annual dividends because dividends are also paid on the additional insurance. You do not have to pay taxes on the dividends paid in this manner either.