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## How is insurance paid up value calculated?

Paid up Value = **No.** **of Premiums Paid / No.** **of Premiums Payable X S.A=10/20 X 100000** = 50000/-. This means that the policy is effective as before except that from the date the 11th premium was due, the sum assured is 50,000/- instead of original 1,00,000/-.

## 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.

## What is the principle of paid up 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 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.

## Is calculated on paid up value?

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

## What is maturity benefit under paid up policy?

Under a settlement option, the maturity amount entitled to a life insurance policyholder is **paid in structured periodic installments** (up to a certain stipulated period of time post maturity) instead of a ‘lump-sum’ payout. Such a payout needs to be intimated to the insurer in advance by the insured.

## How do I convert to paid up policy?

A policy can be converted to a paid-up policy **once it acquires a surrender value** which is typically after 2-3 annual premiums are paid for traditional plans. For Ulips, there is a lock-in period of 5 years. 3. Paid-up value is usually calculated as number of paid premiums X sum assured /total number of premiums.

## What do you mean by paid up?

paid-up. adjective. **having paid the due, full, or required fee** to be a member of an organization, club, political party, etc. denoting a security in which all the instalments have been paid; fully paida paid-up share. denoting all the money that a company has received from its shareholdersthe paid-up capital.

## What is calculated on paid of value?

The paid-up value is calculated as **original sum assured multiplied by the quotient of the number of paid premiums and number of payable premiums**. On discontinuing a policy, you get special surrender value, which is calculated as the sum of paid-up value and total bonus multiplied by surrender value factor.

## How do you continue reduced paid up policy?

In order to revive the policy, you will need to pay all the **due premiums**, along with penalty interest. But insurers sometimes waive these conditions, especially during revival campaigns. They may also waive the need for medical check-ups, and reduce the penalty charge or waive it completely.