Quantcast
answersLogoWhite
notificationBell

Top Answer
User Avatar
Wiki User
Answered 2011-05-09 11:44:08

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.

001
๐Ÿ™๐Ÿฟ
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

What is a paid up insurance 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.


Do you have to pay taxes on life insurance?

Life insurance death benefits are paid out tax-free as long as your premiums were paid with after-tax money. If you have a cash value life insurance policy and surrender the policy, you may be subject to a taxable gain if the total cash value exceeds the cost basis of the policy.


Can you cash in a life insurance policy that is paid up?

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


What is Paid up 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.


How do you keep my policy as paid up?

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.


What limits the amount that a policy owner can borrow from the insurance poicy?

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.


A variable life insurance policy is defined as what?

A variable life insurance policy is an insurance policy that allows the policyholders to invest their premiums in a variety of stocks and funds (options vary depending on the individual policy). This type of policy differs from a whole life insurance policy in that monthly premiums do not necessarily have to be paid (depending on the value of the investment accounts), and a month without a paid premium does not void the policy. Additionally, if the value of the investment accounts is higher than the benefit of the policy, the beneficiaries receive the greater value.


Cash value of paid in full 20 year juvenile industrial life insurance policy?

The cash value of any policy depends on its face value and the value of the policy at maturity when the policy has been maintained in force. The insurance company issuing the policy will be able to give you the answer you want.


Does your policy have cash value?

A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.


What would your 2500 life policy by worth if you got it in 1952?

If the policy was a term life insurance policy and presuming that you paid all premiums and the policy did not lapse for non-payment, it would be considered to be "fully paid-up". Therefore, upon the insured's death, the insurance company would be obliged to pay the face value of the policy. If the policy was a "whole life insurance policy", cash value would probably have accumulated so it may have more value ($2500 plus the accumulated cash value). A definitive answer cannot be given without reviewing the policy.


What type of policy is not permanent life insurance?

Of the various types of life insurance that exist, "term" life insurance is not permanent. This is because it remains in force only as long as premiums are paid. In contrast, "whole life insurance" is frequently also referred to as "permanent insurance" That is because it accumulates cash value, which is sort of a saving account built into the policy. Therefore, once cash value reached a certain amount, in theory, no further premiums have to be paid because the policy can be maintained based upon the cash value.


'in death how much is paid if individual has several whole life insurance policies'?

The amount that is paid by whole life insurance is the face value of each policy. It would be paid to the beneficiaries listed by the owner upon his/her death.



What is 20 Pay life policy?

This type of policy is also referred to as a limited pay life insurance policy. Life insurance premiums are paid for 20 years then the policy is paid in full and no futher payments are required. The policy remains active until it is paid out or cashed in.


How do you find out if a life insurance policy benefit has been paid?

has life insurance benefits been paid : group life insurance policy #4600 certificate #8525 Name William C Morgan


Will my life insurance policy have to pay my student loans?

No. Life insurance is paid the the beneficiary named in the policy, your creditors have no claim against the insurance proceeds EXCEPT if the proceeds are paid to your estate.


What is surrender value in accounting in joint life policy?

it is an amount paid by insurance company to person who has voluntarily terminate his policy before maturity


If you cash in a life insurance policy do you have to pay taxes on it?

"Insurance and Taxes. No. All proceeds or withdrawals from any insurance policy are not taxable." This is not true. If you cancel a life insurance policy, the growth on the cash value IS TAXABLE. If you do not surrender your policy, the money is taken as a loan and therefore not taxable, but interest that has to be paid back to the insurance company grows.


Who are benefits of a life insurance policy paid to if the insured survives the term?

In a term policy if you outlive the term of your policy, no benefits are paid. For example, if you buy a 20 year term life insurance policy, and you are alive at the end of the policy, no death benefit is paid out. -ex


Is cashed in paid up life insurance policy taxed?

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


Is interest added to the paid up value of a life insurance policy?

It's not interest but Bonus and now technically called Guaranteed Addition is added to the paid up value of a life insurance policy.But Loyalty Addition, Financial Additional Bonus (FAB) are paid at the time of maturity.


What is face value for life insurance?

Face value is the amount of life insurance that is stated on the front page (declarations) FACE of the policy. You might get paid less than that if you have policy loans. More if it's accidental death. Some policies pay dividends.


How does a life insurance policy lapse?

A life insurance policy lapses when you stop paying premiums, or if cash value depletes and no more premiums are being able to be paid from the cash value. Usually, there are 30 or 60 days of grace period before lapsing.


What is paid up contract in Insurance?

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


What is life insurance policy?

A life insurance policy is a contract issued by a life insurance company providing protection against the death of an individual in the form of a payment to a beneficiary. Premiums are paid by the owner of the policy to keep the life insurance contract "In Force". In exchange for a series of premium payments or a single premium payment, upon the death of an insured person the face value (and any additonal coverage attached to the policy), minus outstanding policy loans and interest, is paid to the beneficiary.


Still have questions?

Trending Questions
What are fat burning foods? Asked By Wiki User
What is half of 16? Asked By Wiki User
Do potatoes have genders? Asked By Wiki User
Previously Viewed
Unanswered Questions