Paid-up additional insurance is a type of life insurance policy that allows the policyholder to make additional premium payments in order to increase the death benefit of the policy. The policyholder can make these additional payments at any time, and they do not need to be made on a regular basis. When the policyholder dies, the increased death benefit will be paid to the beneficiaries. What is paid-up value in life insurance? Paid-up value is the cash value of a life insurance policy that has been fully paid for. The paid-up value can be used by the policyholder to keep the policy in force, to borrow against, or to cash out. What happens after 10 year term life insurance? Assuming you're the policyholder, after the 10 year term life insurance expires, you will no longer have life insurance coverage. If you die after your policy expires, your beneficiaries will not receive a death benefit from the insurance company.
How do I pay a reduced paid-up policy?
If you have a reduced paid-up life insurance policy, it means that your policy is no longer in force and you are no longer paying premiums. However, the death benefit on the policy is still in place. In order to make a claim on the policy, you will need to submit a death certificate to the life insurance company.
What is paid-up additions available to withdraw? Assuming you are asking about a life insurance policy:
Paid-up additions (PUAs) are additional amounts that the policyholder pays above the normal premium. These amounts go into a special account, and can be used to pay future premiums, or can be withdrawn (subject to certain conditions).
Withdrawals of PUAs are generally taxed as ordinary income, and will reduce the death benefit of the policy.
What happens to the money if I outlive my term life insurance?
If you outlive your term life insurance policy, the money you have paid into the policy will not be returned to you. The policy will simply expire and you will no longer be covered. This is why it is important to choose a policy with a term that matches your needs. If you are unsure how long you need coverage, it is best to err on the side of caution and choose a longer term.