Life Insurance

Can a paid up insurance policy be cashed?


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2011-02-23 10:50:48
2011-02-23 10:50:48

Yes, if there is a cash value in the policy is can be surrendered for that cash. BUT, it is paid up. Why would you cash it in ? It does not cost you anything from this point going forward to be morally responsible. Perhaps a policy loan may be the option.

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A taxable consequence may occur if the cash surrender value exceeds the cost basis (i.e. the premiums paid into the policy).

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.

Whole life insurance policies, unlike term insurance policies, accumulate cash value, like a savings account, as you pay your premiums, so that even if you cancel such a policy before it is fully paid up, it still has some value that can be cashed in.

The paid up life would have it's extra cash value too, so if you cashed it in for the cash value, there would be no more paid up life either.

A paid-up policy is a whole life insurance policy for which no additional premium / payments are required to keep it in force.

A life insurance policy becomes paid up when all premiums as defined in the policy bond have been paid in full.A life insurance policy ought to be paid up before maturity for smooth disposal of maturity amount to the policy holder or its nominee. Premiums for a life insurance policy should be paid up for a minimum period of 3 years to attract surrender value.

If you have an old life insurance policy can you cash it in for cash value

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.

I have a paid up life insurance policy. How do I find info on the policy.

"Paid up" is actually the terminology used in the insurance industry when describing a policy that no longer requires any premiums. When a policy is "paid up", there are no further premiums required for the policy to continue on for what should be lifetime. This can only occur with permanent forms of Life insurance such as Whole Life, Universal Life and Variable Universal Life.

Usually the paid up certificate has the policy details on it and therefore the insurance company will be able to search their records to find the policy. If there is no policy details on the certificate it is still worth contacting the insurer as surely the certificate will have some sort of reference the insurer can use to locate the policy

Virtually no insurance company offers a loan against a paid up policy - they thoughts are if you cant keep premiums up then you wont be able to keep loan payments up.

The paid up value of your life insurance is the point at which no further premiums have to be paid. It can occur either by paying all of the premiums in a lump sum or by paying all of the premiums due in instalments. The precise value of a paid up policy is a fanction of the face amount of the policy, less policy loans or accrued earnings, if applicable.

I need to check on the State Capital Life Insurance paid up policy?

A life insurance policy becomes "fully paid up" when the company tells you no more premium payments are due.

The term you are looking for is "paid-up additions" or "paid-up additional life insurance"

the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.

Go to the branch office of the Insurance Company. Ask for a Status Report citing the paid up policy number and you will be able to ascertain the present status of the policy.

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.

How do I find out who has my policy I had with Commercial State Life INsurance Company

To make a policy paid up depends on the length and type of the policy. If the policy is coverage for a year, then you would have to pay 12 months to have it paid up. For further information, please give our more detailed information regarding the type of policy and what type of coverage you bought.

yes, as long as the policy is still in force you can borrow agains it

The policyholder should contact the insurance company and cancel the policy - you might get a partial refund if the premiums are paid up-to-date!

Just call the insurance company customer service department and ask them

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