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Question

What does ‘Paid Up’ policy means in insurance?

A Policy that requires no further premium payments and continues to provide benefits till maturity. Correct Answer Incorrect Answer
B Policy that provide a life cover for a specific term Correct Answer Incorrect Answer
C Policy for which the premium is paid in a single period together Correct Answer Incorrect Answer
D Policy in which the premium gets reduced over a period of time and benefit increases till maturity Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

A life insurance policy in which if all the premium payments are complete and the insured is free of all payment obligations, the policy stays intact until insured's death or termination of the policy is called paid-up policy. Description: Paid-up policy falls into the category of traditional insurance plans.

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