What happens when your insurance policy is in paid-up status

What happens when a policy is in paid-up status? - Shaul Hameed For an insurance policy to qualify as 'paid-up', you must have paid premiums for a minimum specified period (often two or three years). In case you stop paying premiums before the end of this period, not only will your insurance policy lapse, but you will also lose all benefits. However, if you discontinue the premiums after this period, the policy will remain active but with reduced benefits and a lower sum assured. How does a paid-up policy work? Suppose Rohan bought a life insurance policy with an assured sum of Rs 10 lakh and a premium payment term of 20 years.

This article was originally published on February 18, 2025.