Asymmetrica Glossary

Paid-Up Value

Also called: paid-up, PUV

A reduced sum assured kept in force without further premiums, after you stop paying mid-term.

If you stop paying premiums after the policy has acquired a Surrender Value (typically 2–3 years in), you can convert it to 'paid-up' status instead of surrendering. The policy stays alive but the Sum Assured shrinks proportionally to (premiums paid / total premiums due) × original SA. Bonuses already vested stay vested but no new bonuses accrue.

Paid-up is often a better option than surrender for medium-tenure policies you can no longer afford — you preserve some cover and keep the death benefit alive without throwing more money at the policy.

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