Simply, Paid-Up Whole Life insurance is a life insurance policy with premiums that were due only for a certain period of time or until the insured reached a certain age. From that time forward, the policy will remain inforce until the insured reaches age 100 or a claim is paid.
During the time premiums were being paid, cash value likely was earned. However, the amount of cash value being earned will decrease once premium payments are no longer required.
All of this is different than a reduced paid-up life insurance policy. This happens if the policy permits it as an option when a premium payment wasn't received by the end of the grace period. If it does, then the cash value will be used to purchase as much face value ( death benefit ) as possible. The $10,000 original benefit, for example, might become a reduced paid-up policy for $5,000, but no premiums will be required to keep it inforce.
A paid-up policy is a whole life insurance policy for which no additional premium / payments are required to keep it in force.
"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.
A 770 insurance plan is a whole life insurance plan. The life insurance plan is set up as an annuity. When seven years of premiums are paid the plan will pay for itself.
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.
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.
Most term life policies do not have the option of becoming paid up as do whole life polices AJH
It may or may not be a good idea depending on your personal circumstances. Talk to your agent.
Life insurance is paid out upon your death. If you have whole life insurance (premium plus a savings component) perhaps there might be a time where no further premiums are required--it is paid up. Best thing to do is to call the company and inquire as to what sort of policy you have.
To lower the cost of a Whole Life policy you can opt for TPL rider: This rider provides additional coverage through the annual purchase of a combination of oneyear term insurance and additional amounts of permanent, paid-up whole life insurance. Throughout the life of the contract, the TPL premium is used to purchase an increasing amount of paid-up additions and a decreasing amount of term insurance. It is intended that TPL paid-up additions and policy dividend additions will eventually accumulate to a point where the term portion is no longer needed.
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.
If you have a 'whole life' policy it likely means that you are 100. If you would like to cash them in..................if that's possible.....................contact the issuing insurance company.
I have 3 paid up policys with kentucky life insurance where are they now.
The term you are looking for is "paid-up additions" or "paid-up additional life insurance"
A life insurance policy becomes "fully paid up" when the company tells you no more premium payments are due.
no it is not
Life insurance can be "Term" or "Whole Life". Term insurance is paid over a short period of time (such as 1 time a year) for a short period of coverage (such as one full year). Many parents buy (take out) Term Insurance on their school-age children, especially if the child plays sports. The coverage is for the school year, only, or covers 12 months on some policies. After that short period, the coverage expires. The policy would need to be re-issued and a new payment made. Term life insurance rates vary, often widely, depending on age, health, medical conditions, and usual activities.Whole life insurance is paid monthly, for an indefinite number of years (usually until the person fails to pay or dies). Some Whole Life policies can be converted to a Paid Up-Whole Life policy. But generally, Whole Life means "covered for life--as long as you pay for life".Given these descriptions, Term Life Insurance can be described as "short term for a shorter number of coverage at a set payment rate only for that year". Cost of renewal may change each year.Whole Life can be described as "longer term life insurance for a longer period of time (lifetime) as long as monthly, bi-annual, or annual payments are made, and coverage then stays in force until money is no longer paid--or death."Whole Life-Paid Up means you have a reduced total insurance amount, but never have to pay for it again. A paid-up policy just sits there until death.
Term life insurance does not build up accumulated value and ends when the insurance policy period ends. Whole life insurance does build up accumulated value, has tax advantages, but costs more than Term Life insurance. You can determine which product better meets your insurance needs.
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.
Single premium life insurance is life insurance coverage in which one premium payment is made and the life insurance policy is fully paid up with no additional life insurance premium payments required.
The Dividend Option Term (DOT) rider provides term insurance that helps you get additional death benefit protection at an affordable cost. The DOT rider works in conjunction with the "paid-up additions" dividend option, which applies any dividends earned to automatically purchase more paid-up life insurance. Paid-up insurance means that, once purchased, you won't pay a premium for this additional coverage. As the amount of paid-up life insurance increases, the amount of term insurance provided by the rider decreases.
The benefits of having Term Insurance as opposed to Whole Life Insurance are that Term Insurance is cheap for people up to the age of 50 and even up to the age of 65 in some cases. Whereas Whole Life Insurance is much more expensive as you are also paying for an investment in bonds or stocks which add significantly to the premium
I have a insurance from federal group life insurance retirement plan .I like to know if they are in business
Whole life insurance is a product that provides a death benefit, along with a feature that allows you to build up cash value. I am not exactly sure what you mean by Annuity Life Insurance, but typically speaking annuities are a type of insurance product that are geared primarily to build up investment value and then take out a guaranteed stream of income as a result. Read more on what is whole life insurance below.
I need to check on the State Capital Life Insurance paid up policy?