'Paid-up value' is payable on a life insurance policy _________________.
A
On the maturity of the policy
B
When the policy lapses
C
When the policy is surrendered
D
On maturity or expiration whichever is earlier
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Solution
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Correct option is A)
A life assurance policy
in which if all the premium payments are complete and the insured is free of
all reimbursement obligations, the policy stays integral until the insured's death or
stop of the strategy is called a paid-up policy.
'Paid-up value' is payable on a life insurance policy on the maturity of the policy. If the policyholder continues to hold the policy, he
will get the paid-up value at the end of the term. The policyholder also has
the option of concession the policy before that. If you do not want to maintain
the policy, it is forever better to submit the policy.
