If you discontinue paying the premiums in your life insurance policy, your policy might be converted to a paid-up plan. The paid-up benefit is available in some life insurance policies only if you pay a minimum number of premiums.
When the policy becomes paid up, the benefits payable on death or maturity reduce. You can continue the coverage without paying the premium at the paid-up value. Future bonuses, if applicable, are not added to the plan, but previously added bonuses would be paid under the paid-up policy. However, there are certain conditions to follow before converting to a paid-up insurance policy.