Why Should I Buy a Paid-Up Life Insurance Policy?

Shawn Plummer

CEO, The Annuity Expert

Understanding Paid-Up Life Insurance

Paid-up life insurance refers to a whole life insurance policy that is fully funded. Once paid in full, the policy remains active without the need for further premium payments. This feature provides several key benefits:

  1. Financial Stability: Once your policy is paid up, you no longer have to worry about future premium payments. This can be particularly beneficial if you’re concerned about budgetary constraints in retirement or later life stages.
  2. Increased Cash Value: Paid-up policies often build cash value faster. This cash value accumulates over time and can be borrowed against or used as financial leverage in the future.
  3. Paid-Up Additional Insurance: This is a unique feature allowing policyholders to buy additional whole life coverage using dividends from their existing policy. Each Paid-Up Addition (PUA) has its own death benefit and cash value and continues to earn dividends. This effectively increases the overall value and death benefit of your life insurance without requiring medical underwriting or additional premiums.

Benefits of Paid-Up Life Insurance

  • Security for Dependents: Ensures that your dependents are financially secure without the burden of ongoing premium payments.
  • Investment Growth: Acts as a long-term investment, with the cash value growing over time.
  • Flexibility: Offers financial flexibility, as the cash value can serve as an emergency fund or retirement supplement.
  • Peace of Mind: Provides peace of mind knowing your coverage is secured regardless of future financial changes.

Working with Experts

  • It’s crucial to work with experienced brokers, like The Annuity Expert, who can guide you through various options and help tailor a policy to your specific needs.


Opting for a paid-up life insurance policy can offer financial stability, increased cash value, and peace of mind. It’s a strategic choice for those looking to secure their insurance benefits without ongoing financial commitments. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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