Paid Up Policy
A planning technique that eliminates premium payment obligations in exchange for a decreased death benefit.
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Insurance Discussion Prompts: Paid Up Policy
Insurance discussion prompts to begin a meaningful client conversation about paid up policies.
Candidates
Solutions are not one size fits all. For every planning technique, there are determining factors that illustrate whether the technique will fit the planning for an individual, family, business, or non-profit organization. Outlined below are ideal candidates who might benefit from exploring Paid Up Policy solutions.
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The cash value inside some permanent policies can be used to offset the premium payments in exchange for a permanently reduced death benefit, which is referred to as a paid-up policy. This option is for permanent policies and works best when there is substantial cash value inside the policy. Alternatively, a policy’s cash value can be exchanged for a new paid-up policy at another insurance carrier. This approach would require underwriting, and you would need to be in good health. In either scenario, no further premium payments would be required, and the reduced death benefit would be paid to the policy’s beneficiary at your mortality.