How paid up life insurance works

[Augusta]

The paid-up life insurance is a life insurance policy that is paid in full. The policy remains that way, and the insured will not need to pay any further premiums.

How does the paid up policy works?

The paid up policy will remain same till the insured’s death or the insured terminate the policy.
psid up life insurance works in two ways

Pay Premiums In Set Schedule

Whole life insurance policies come with a schedule of required premiums. The policy becomes paid-up once the policy owner satisfies the premium payments necessary for paid-up status.

Reduced Paid-Up

The policy becomes paid-up when the insured or the policy owner decides to move to decrease the paid-up feature of their whole life policy before getting to the end of the premium paying period. The insured at this point can choose the paid-up status with a lower death benefit. Once the policy is paid-up, it’s certain to be in effect for the rest of the policyholder life.

 

[saoussen5765]

Did you mean such type of insurance cannot be paid for different times but at once @Augusta?

 

[Knowlopedia]

Paid up life insurance is a type of term life insurance that provides a monthly benefit over the insured's remaining life, rather than to the beneficiary after death. This form of life insurance has a higher payout than other types of term life insurance, but it is also more expensive to buy and maintain.

Paid up policies typically have a higher premium cost than traditional term policies, which means they provide coverage for less money up front. In exchange, they pay out more after death.

The amount paid out in benefits depends on the type of policy you purchase and how much coverage you want from the insurer. For example, if you choose a 10-year paid up policy with $250,000/$500,000 in coverage and make monthly payments for 10 years at 8 percent interest (on an annual basis), you'll receive $5,948 ($25,000 × 12/12 × 8%) if your beneficiary dies before age 65 (the age at which benefits become payable under state law). If your beneficiary dies before age 55, $3,811 would be payable instead.