What Does It Mean For A Life Insurance Policy To Be Paid Up? 
Simply put a Life Insurance policy is paid up when according to contract you no longer have to pay on a policy to maintain the face amount . A 20 Pay Whole Life , $ 25000 policy for example would be paid up in 20 years for the full face amount . A term insurance policy does not have this feature so do n't be confused by a 20 year TERM policy . You also have reduced paid up options in a Whole Life contract by using the cash value to purchase a reduced face amount . 