What Is A Reduced Paid Up Life Insurance Policy? 
Reduced Paid Up policies result from exercising one of the standard nonforfeiture options in cash value policies . When a policy owner wants to stop paying required premiums , it is one of the alternatives to surrendering the coverage for its cash value . In this case , the death benefit is reduced from the amount of the original policy to a level that can be purchased by the available cash value . The paid-up policy is the same type of insurance as the basic policy from which the cash value is being used . Cash values will grow in the paid-up policy . 