What Is Paid Up Value In Life Insurance? 
Paid up value in life insurance is a non-forfeiture provision which is found in most classic whole life insurance policies . Non-forfeitureprovisions are a series of values found within a life policy that give you options if you want to stop making premium payments on your policy . These options are : Cash Surrender : Giving up or selling your policy back to the insurance company for the amount of cash value accumulated within your policy over the years you own it . These values are stated on a chart called Non-forfeiture Provisions contained within your policy . Extended Term Insurance : This provides for the continuation of the full face amount of your policy for a specified period of time based on the amount of cash value accumulated within your policy . The length of time is stated in the same chart listed as non-forfeiture provisions . Paid-up Insurance Value : This provision also is included the the chart of Non-forfeiture provisions and it lists the new face amount of insurance you can elect if you stop making premium payments for the policy . It is based on the cash surrender value of the policy at the time you stop making premium payments . Depending on the length of time the policy is in force this amount may equal the full face amount of the policy , and this amount will be in force for the rest of your life . There are policies that can be purchased with a date where the policy is fully paid up , such as a 20 year payment life , or a life paid up at age 65 . Generally these policies spread a lifetime of premium payments over a shorter period of time making the premium payments slightly more than a traditional whole life policy where premium payments are paid for the life of the insured , and are typically known as a limited payment life policy . 