When Is Life Insurance Paid Up? 
A life insurance policy is paid up when all required annual premiums have been paid . If the policy is a `` whole life paid up at age 95 '' contract , the policy is paid up at age 95 . It is important to note that the term `` paid up '' is often misused . In whole life policies that pay policy dividends , the dividend values are frequently used to buy `` paid up additions '' which are paid up , additional amounts of insurance that have cash value and add to the base policy . The cash value of paid up additions may be projected , based on the current dividend scale , to grow to a point in the future where those values may be used to premiums on the base policy . The policy is not paid up when the policy owner pays premiums this way . 