Paid Up
A policy status in which no further scheduled premiums are required to maintain the stated paid-up coverage, subject to the contract.
Why it matters
Paid-up can describe a fully paid original policy, a reduced paid-up nonforfeiture option, or paid-up additions; those outcomes are not interchangeable.
Where you may see it
Policy data page, nonforfeiture provision, premium schedule, dividend election, annual statement, and paid-up confirmation.
What to verify
Coverage amount, effective date, remaining riders, loans, guarantees, dividends, surrender value, and whether charges can still affect duration.
Do not confuse it with
Premium offset, which may rely on non-guaranteed values to pay future premiums rather than making the policy contractually paid-up.
Read Paid Up in context
Start with the exact sentence where the term appears, then read the definition, schedule, and any referenced rider together. The practical concern is this: Paid-up can describe a fully paid original policy, a reduced paid-up nonforfeiture option, or paid-up additions; those outcomes are not interchangeable. Locate the relevant records—policy data page, nonforfeiture provision, premium schedule, dividend election, annual statement, and paid-up confirmation.—and compare them with the issued contract rather than a sales summary.
Before signing, changing coverage, or making a claim decision, record the points that control the result: Coverage amount, effective date, remaining riders, loans, guarantees, dividends, surrender value, and whether charges can still affect duration. If another policy uses similar wording, do not assume it has the same effect.
Keep the dated page or form with your notes. If the definition changes the benefit, premium, ownership rights, or a deadline, ask the issuing insurer for a written explanation tied to the policy number.
Reliable places to check
- Your issued policy and application copy.
- NAIC consumer life insurance resources.
- Your state insurance department for licensing and consumer help.