What Is Paid-Up Insurance?

Paid up insurance is a convenient form of life insurance.

Paid-up insurance offers life insurance that does not require paying premiums after a certain period. A paid-up insurance plan lets the policyholder choose when to stop paying premiums. This kind of insurance may be convenient and more versatile because it allows customers to choose a specific age or date to stop making periodic payments.

Eligibility

Agencies that offer paid-up life insurance usually set an age at which a policyholder can choose to stop paying premiums. A typical paid-up life insurance policy will have a set age of 65, but to be eligible, the policyholder usually must be 45 or younger. Customers may opt for other policies as well, which requires payments to stop at a different age.

Coverage

Before purchasing a policy, it is advisable to check with the provider regarding the scope of coverage, and whether coverage will cease once the the policy is paid-up. As with all insurance policies, life insurance or otherwise, shop around for the best deal before you commit to any one provider.

Employer Insurance

Depending on the employer, retirees can receive paid-up life insurance from their former employers, and employees receive benefits once they retire. Typically, those who are eligible for this type of life insurance had employee-paid life insurance as well.

References

• Paid-Up Life Insurance: Home