In long-term care insurance, it is generally the operation of a non-forfeiture feature under which the enrollee's coverage continues for some period based on the amount of premiums paid when the policy lapses. Methods for providing the paid-up policy may include full benefits for a shorter benefit period or partial benefits for the full original benefit period. Some policies also have a provision which pays up the policy under specified conditions upon the death of an insured spouse. Some companies offer limited or single payment premium modes that result in paid up policies when a specified number of annual premiums have been paid.
An insurance policy that will provide benefits in the future but that requires no further premium payments.----------[ Back
Insurance on which the policyowner has completed payments, but that has not yet matured. This may be either (1) reduced paid-up insurance provided under the nonforfeiture provision; (2) a limited payment policy under which all premiums have been paid; or (3) a policy on which accumulated dividends are applied to pay the net single premium required to pay up the difference between the policy's reduced paid-up insurance and its face amount.