No more premiums are paid into a plan but the payments already received, continue to be invested until the plan reaches maturity.
It is possible, with certain policies having an investment content e.g. endowment, to cease paying premiums and retain a paid-up policy which will pay out on eventual claim. Also another name for ‘preserved' pensions.
A policy/benefit is said to be paid up if the premium has been suspended whereas the benefit is still valid.
This refers to the state of a life assurance policy where no further premiums are being paid but life cover continues. It applies to policies with an investment element such as most whole of life policies and endowments. The premium is taken from the accumulated investment fund(s).
The premiums have been stopped but the policy still ‘grows' and keeps running until maturity.
Paid up means that no future premiums will be required.
this refers to a whole life insurance policy for which all the necessary premiums have been paid. Some policies are payable until the policyholder's death, and some will stop when the policyholder reaches a certain age; it is in this situation that the term is applicable.
A policy condition under which no further premiums are payable and the coverage continues, usually for reduced benefits. This may be an automatic policy condition invoked by the insurer if renewal premiums are not paid, or could be a voluntary selection by a life assured.