paid-up policy

paid-up policy definition - business

paid-up policy

A whole life insurance policy that requires no additional premium payments for the insurance to remain in force. For example, a person may purchase a 30-pay policy at age 20, which means that paying the required premiums will result in the policy being fully paid up when the policyholder reaches age 50.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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