Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Paid-up value is the reduced sum assured a life insurance policy retains when the policyholder stops paying premiums after a minimum term but doesn’t surrender the policy.
A smaller guaranteed payout your policy keeps even if you stop paying premiums, instead of losing it entirely.
Calculated as sum assured multiplied by the ratio of premiums paid to total premiums payable; the policy stays in force at this reduced value without further cover.
Stopping premiums after 5 of 20 years on a ₹10 lakh policy might convert it to a paid-up value of roughly ₹2.5 lakh.
A smaller guaranteed payout your policy keeps even if you stop paying premiums, instead of losing it entirely.
Paid-up Value helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.