Paid-up Additional Insurance

Definition

• Depending on the insurance policy, individuals may be given the option to use policy dividends, or additional premiums, to purchase additional coverage on their existing policy.

Synonyms
extra insurance coverage, no premium additional insurance, additional insurance coverage, covered additional insurance

Related Terms and Acronyms

• Convertible Life Insurance — Definition,
  • A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
• Coverage — Definition,
  • The type or amount of protection afforded by an insurance policy.
• Dividend — Definition,
  • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
• Future Purchase Option — Definition,
  • A provision that gives the policyholder the option to purchase additional insurance coverage at a future date.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Premium — Definition,
  • A payment made to an insurance company for insurance coverage.
• With-Profits Policy — Definition,
  • Insurance that pays the policyholder a portion of the insurer's profits.