What is the Definition of Reduced Paid-Up Insurance Option?
One of several nonforfeiture options included in life insurance policies that allows the owner of a policy with cash values to discontinue premium payments and to use the policy’s net cash value to purchase paid-up insurance of the same plan as the original policy. (See Nonforfeiture options)
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Annuity?
What is the Definition of Reduced Paid-Up Insurance Option?
You can find random definition and meaning of insurance terms below:
What is the meaning of Cancellation
Terminating an insurance contract before the specified end-date listed in the policy.
What is the meaning of Claim
Request by a policyholder or third party from an insurance company for compensation of losses covered by insurance.
What is the meaning of Claimant
A person requesting an amount for covered losses from the insurer.
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