What Is Paid Up Value In Life Insurance? 
A life insurance policy that has cash value has several non forfeiture options . Should you no longer be able to make the premium payments you may choose to do one of three things . You can use the cash value to purchase a paid up policy . This means you have a reduced face amount for whatever the cash value will buy . You must notify the company if you want this option . If you do nothing and simply stop paying , the policy will go on what is called extended term . The cash value will purchase low cost one year term for the full face amount until the cash value is used up . There are tables in your policy that show this . You could also cash surrender the policy for the cash value . 