Paid-Up Life Insurance: Guaranteed Sum for Nominee Even with Missed Premiums
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Moneycontrol•22-01-2026, 14:43
Paid-Up Life Insurance: Guaranteed Sum for Nominee Even with Missed Premiums
- •A Paid-Up Life Insurance Policy allows your policy to continue with reduced coverage even if you stop paying premiums.
- •This option prevents policy termination, ensuring some protection remains based on premiums already paid.
- •Benefits include relief from premium burden and retaining a minimum life cover for the family.
- •Drawbacks involve significantly reduced coverage and decreased bonuses compared to a fully active policy.
- •It's a better alternative to surrendering a policy, providing continued protection during financial difficulties.
Why It Matters: A Paid-Up policy offers reduced but guaranteed life cover, a smart alternative to policy surrender.
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