---
title: "What Is Paid-Up Policy? Definition | Epic Life Glossary"
description: "A paid-up policy is a permanent life insurance policy where all required premiums have been paid. Coverage continues for life without any further..."
url: https://epicline.preview.multisites.ai/glossary/paid-up-policy
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Paid-Up Policy

A paid-up policy is a permanent life insurance policy where all required premiums have been paid. Coverage continues for life without any further premium payments by the owner.

## Why it matters

A policy can become paid-up through a limited-pay design, such as pay for 10 or 20 years, or through dividends or reduced paid-up conversion. The death benefit stays in force, and cash value may keep growing. This is helpful for seniors on a fixed income. Terms differ by carrier and plan.

Source: [naic.org](https://content.naic.org/consumer/life-insurance.htm)

[Read next, for familiesWhole life insurance: how cash value works, what it costs, and who it fits](https://epicline.preview.multisites.ai/life-insurance/whole-life)

## Where we use this term

-   [Burial insurance: is it different from final expense, and is it worth it?](https://epicline.preview.multisites.ai/life-insurance/burial-insurance)

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