Hi there,
To answer your query, the "paid-up option" refers to the convertion of a policy that is currently still in-force and within the premium paying term, to a policy that is fully paid-up. That means that you do not need to pay any future premiums for the said policy.
This option can be exercised only for policies that have a cash/surrender value. After this option is exercised, the Sum assured or benefits for the policy will be adjusted. Although the policy still retains a sum assured, the surrender value of the policy will not continue to enjoy the accrual of bonuses. You will not be able to take up a policy loan as well from the policy in question.
This is not a light decision to make, and should be done with your financial advisor to discuss the possible alternative options to your current solution.
I hope i was able to address your question to your satisfaction. Have a great week ahead!
Hi there,
To answer your query, the "paid-up option" refers to the convertion of a policy that is currently still in-force and within the premium paying term, to a policy that is fully paid-up. That means that you do not need to pay any future premiums for the said policy.
This option can be exercised only for policies that have a cash/surrender value. After this option is exercised, the Sum assured or benefits for the policy will be adjusted. Although the policy still retains a sum assured, the surrender value of the policy will not continue to enjoy the accrual of bonuses. You will not be able to take up a policy loan as well from the policy in question.
This is not a light decision to make, and should be done with your financial advisor to discuss the possible alternative options to your current solution.
I hope i was able to address your question to your satisfaction. Have a great week ahead!