What Does It Mean For A Life Insurance Policy To Be Paid Up? 
A paid up life insurance policy is one that requires no more premiums for it to remain in effect . In essence , you have paid enough premiums that , left untouched , your policy will stay in effect for the rest of your life . Some people want to quit paying premiums before the policy is paid up , and choose to settle for a `` reduced '' paid up amount of insurance . The same thing happens , the policy will stay in effect with no further premiums paid . But the face amount of the policy will be less than what it was originally . 