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Paid Up Insurance Paid-up insurance is a policy type that you purchase in full at the beginning of the premium. Since the policy is purchased in full, there are no premiums that need to be paid over the life of a policy. Typically, the cost of paid-up insurance will not be the entire cost of the policy, since the life insurance company can invest the total amount and earn interest on that investment. Paid-up insurance is a great way to get your life insurance in place and not have to worry about it, but you will need to have a large sum of money in order to do this. If you come into a large sum of money, such as through an inheritance, you might be a good candidate for receiving paid-up insurance. Talk to your life insurance provider to decide if this might be a good plan for you and your family. You may also want to consider a paid-up policy that is smaller, to cover funeral expenses. More Glossary Terms Explained here |
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