What is Reduced Paid-Up Insurance? | LIFE-HEALTH Exam Prep

Reduced paid-up insurance is a nonforfeiture option that uses a policy's cash value to purchase a smaller permanent life insurance policy that is fully paid up, with no further premiums required but a reduced death benefit. 📚 Learn more about Reduced Paid-Up Insurance and other key terms for your LIFE-HEALTH exam at Open Exam Prep. 🎯 This term appears on: LIFE-HEALTH 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Reduced Paid-Up Insurance definition: https://www.open-exam-prep.com/glossary/reduced-paid-up 💡 Exam Tip: Reduced Paid-Up = smaller death benefit but LIFETIME coverage and no more premiums. Extended Term = ORIGINAL death benefit but LIMITED time. --- #insurance #examprep #financeexam #life-health