Paid-Up Life Insurance
If you aren't really looking forward to paying life insurance premiums for the remainder of your life, you may want to consider getting paid-up life insurance. With this plan, you will choose a period of time or age that you would like to stop paying premium rates. Most of paid-up life insurance policies have 65 as the set age to stop making premium payments. Most of the time, you will have to be under 45 to be eligible for this option. With whole life insurance, you will be able to receive the paid-up option through most insurance companies.
Does Paid-up Life Insurance Offer Permanent Coverage?
Some insurance providers will stop the coverage of the policy once the term is reached, some others will allow you to still keep your basic coverage without the need to make anymore payments. The money paid with the premiums accumulates cash value, which can be used to pay for the remainder of the premium of the policy. You can check with the insurance company if you are in belief that you have made sufficient amount of payments to surrender the policy to pay for the rest of the policy’s premiums. When your insurance policy is paid-up, this means that it is able to pay for itself.
Do Employers Offer Paid-up Life Insurance?
Some retirees are able to receive paid-up life insurance through their employers. This option is available to employees who had optional employee-paid life insurance. If you will be retiring from your company soon, make sure to check with your employer to find out whether you are able to receive this option. Younger employees should enroll in a life insurance policy that offers this plan for future coverage.