What does Paid-Up Additional Insurance mean? Read on to discover the definition & meaning of the term Paid-Up Additional Insurance - to help you better understand the language used in insurance policies.
Paid-Up Additional Insurance
Paid-up additional insurance is additional whole life insurance that a policyholder can purchase using dividends from the original policy. Available as a rider, it allows the policy to increase the amount of life and death benefits. Moreover, the policyholder can take a loan against the paid-up additions or surrender their value for cash; however, either would reduce the death benefit and cash value.
We hope the you have a better understanding of the meaning of Paid-Up Additional Insurance.