What is the Definition of Reduced Paid-Up Insurance Option?

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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