What Is Paid Up Value In Life Insurance? 
Basically , this is the value of the policy if , for whatever reason , you stopped paying the premiums immediately and the original policy lapsed . For example , you could have a life insurance policy with a death benefit of $ 100,000 . It could have a paid up value of , say , $ 10,000 . This means that if you stopped paying the premiums for a long enough period , the policy would then become a paid-up policy in the amount of $ 10,000 : You would no longer have to pay premiums on it , but it would then only pay out $ 10,000 in the event of the insured 's death . 