Paid up life insurance has a couple of different definitions. If you are already familiar with the terminology and came here looking to get quotes, please fill out the form on this page and we will be happy to assist you in choosing a policy that is right for you. For the rest of this article we will be addressing the most common questions on this type of life insurance. If you would like to learn about other types of life insurance click here.
Quite simply paid up life insurance is whole or universal life insurance where the policy has been paid up. This means that you no longer have to make any premium payments on the policy and will still receive the death benefit. For most people this means that they have been making premium payments on their life insurance for many years and there are now sufficient funds in the cash value of the account to continue to make payments until you are 100 years old.
In short, no. It just means you have your policy paid up. There are some special policies that use paid up life insurance as a benefit. For instance, some policies will pay a dividend out over time. Instead of paying that dividend out they will purchase paid up life insurance for you (usually in five thousand to ten thousand dollar policies). This way eventually you will not need the larger policy and can rest easy with all the small paid up life insurance polices.
Yes there are other types of paid up life insurance. You can actually pay for your entire term life insurance policy at one time. As you can imagine, this is very expensive because you would be paying all the premiums for the life of the policy all at once. Even at $500 per year this would be a lot if you got a thirty year or twenty year term policy.
At TermLife360.com we want to make sure you are getting the right insurance for your needs. We are an independent agent, which means we do not work for any one insurance company or one insurance product. This means we are free to shop all the companies and products and give you as many options as you want for your life insurance needs. If you ever have any question or if there is any way we can serve you please let us know.