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## What is paid up value?

Paidup Value. Paidup value is **the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums** after paying the full premiums for the first three years.

## How is paid up sum assured calculated?

If a policy needs to be surrendered or a loan needs to be availed, it is taken as a **percentage of the Paid Up Value**. … If the Policy Term is 25 years and the Sum Assured is Rs 20, 00,000 and the person has paid premiums for 5 years, then the Paid Up Value of this policy will be reduced to the Sum Assured of Rs 4,00,000.

## How is reduced paid up insurance calculated?

Life insurance companies calculate the reduced coverage based **on the number of premiums you have paid, the total cash value in the policy and your age**. Usually, the amount of cash value directly reflects the amount of reduced paid-up coverage you would receive.

## What happens when a life insurance policy is paid up?

Paid-up life insurance pertains to a life insurance policy that is paid in full, remains in force, and you no longer have to pay any premiums. … **The cash value continues to grow in time with the** premiums that you pay. If you surrender the policy earlier, you are then entitled to some of the cash value.

## What is paid up stock value?

The paid up value is **the actual amount paid by the shareholder for one share**. For example, Face value is Rs. 10, Rs 2 on application Rs 2 on allotment hence the paid up value is Rs 4 per share. The Difference money Rs. 6 is called unpaid up value.

## What is the difference between paid up value and surrender value?

When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value. More the number **of premiums paid**, more is the surrender value. Surrender value factor is a percentage of paid up value plus bonus.

## Is calculated on paid up value?

Paid-up value is usually calculated as **number of paid premiums X sum assured /total number of premiums**.

## How do I make a paid up policy?

**It is calculated using the following formula:**

- Paid up value = Original sum assured x (No. of premiums paid / No. of premiums payable)
- Example of surrender policy.
- Surrendering a policy is suggested when.
- Making a policy paid up is suggested when.
- Just looking at it from absolute numbers point does not make sense.

## What means surrender value?

The surrender value is **the actual sum of money a policyholder will receive if they try to access the cash value of a policy**. Other names include the surrender cash value or, in the case of annuities, annuity surrender value.

## How does paid up insurance work?

Paid-up life insurance is an option that allows you to keep a whole life insurance policy in force without paying any premiums for a while, or permanently. … With paid-up life insurance, **the policy is kept in force by deducting the premium from your cash value account**. At the same time, the death benefit also decreases.

## What happens to the cash value in a reduced paid up policy?

Generally, a Reduced Paid Up policy **reduces the face value to preserve the full insurance coverage period**. The Reduced Paid Up insurance will have cash and loan values. It also may be surrendered by the policy owner at any time for its cash value.