What Is Paid Up Whole Life Insurance? 
That is a great question ! I have a great answer - it means that there is no more cost for your coverage , it is paid off ! There are a couple of ways that you have reached this great place . You might have purchased a policy that was structured to have higher premiums for a period of time , allowing the costs of the policy to be paid off more quickly than the traditional whole life policy would normally have . These policies are more expensive than the traditional whole life policy , but are perfect for someone who may be working , and not want to carry that monthly expense into retirement , yet still wants whole life coverage . For someone who wants to maximize retirement money , this may be a great financial decision . The other way that you might have gotten here is by converting an expiring term life policy . Often when a term policy reaches a point near its end date the option to convert your premiums paid over the life of the policy to payments on that company 's whole life policy that would most closely match your term policy in price . If you choose that option , then the company considers what you have paid on the term as the purchase price for a single payment on a whole life policy , and the face value is determined by that price . For example , I have a client whose $ 100,000 term policy allows him the option to convert it . If he chooses to do that , the premiums he would pay on the policy over the life of the term would purchase about $ 43,000 worth of whole life insurance that is paid up free and clear . He would have that coverage and not ever owe another penny on it . If you have any further questions , I hope you feel free to contact me and ask , I 'm happy to help . Thank you for asking your question ! 