When a policy has availed of paid-up insurance options, what is true about the policy's coverage?

When a policy has availed of paid-up insurance options, it means that the policyholder has chosen to convert their existing policy to a paid-up status rather than continuing to pay premiums. In this situation, the coverage does not simply end; instead, the policy remains in force but is adjusted to reflect the reduced benefits available without ongoing premium payments.

Under the paid-up insurance option, the policyholder retains coverage for a limited additional period based on the accumulation of cash value within the policy. This means that while no further premiums are required, the face value of the policy is adjusted, and the coverage may last for the remainder of the insured's life, depending on the terms of the policy.

This assures the policyholder that they can maintain some level of benefit without the need for continuing premium payments, rather than facing termination of the policy or losing the entire face amount abruptly.