Paid-Up Insurance
Fundamental terms that define how a life insurance policy works.
What Is Paid-Up Insurance?
Paid-up insurance refers to a life insurance policy that requires no further premium payments but remains fully in force, providing a death benefit for as long as the insured lives (in the case of permanent policies) or for the remaining term period. A policy becomes paid-up when all scheduled premiums have been paid under a limited pay structure (e.g., 10-pay or 20-pay whole life), or when accumulated cash value is used to purchase a paid-up policy through a non-forfeiture election. Paid-up policies continue to accumulate cash value and — for participating policies — continue to earn non-guaranteed dividends without additional premium outlay.
Nevada Context
Nevada consumers who want permanent life insurance without lifelong premium commitments often consider limited-pay whole life policies that become paid-up in 10 or 20 years. Agents in our network can compare paid-up options across carriers.
How It Affects You
A paid-up policy eliminates premium risk in retirement — you carry no insurance payment obligation regardless of your income. This makes limited-pay structures attractive for professionals who want coverage to outlast their earning years.
Paid-Up Insurance in Practice
A Nevada dentist purchases a 20-pay whole life policy at age 40 with illustrative $800/month premiums; by age 60, the policy is fully paid-up — requiring no further premiums — while the illustrative $500,000 death benefit and cash value continue for life.
Dollar amounts shown are illustrative. Actual amounts vary by carrier, applicant age, health status, and individual underwriting.
Related Glossary Terms
Related Resources
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