What is Paid-Up Value?
If you stop paying premiums after 3 years, your policy becomes "Paid-Up". The Sum Assured is reduced proportionately.
- Formula: Paid-Up Value = (No. of Premiums Paid / Total Premiums Payable) × Sum Assured.
- Bonus: Bonus accrued till the date of stopping payment is added (if policy is > 5 years old). No future bonus is added.
- Payout: This amount is NOT paid immediately. It is paid at the end of the policy term (Maturity) or on Death.