When a policyholder opts for paid-up insurance options, how is the death benefit affected?

When a policyholder chooses paid-up insurance options, the death benefit remains unchanged from the original face amount of the life insurance policy. This option allows the policyholder to use the policy's accumulated cash value or dividends to purchase a fully paid-up policy, ensuring that the original coverage amount continues to be in effect without the need for further premium payments.

By selecting paid-up insurance, the policyholder effectively converts their existing policy into a contract that is fully paid for, but the death benefit does not decrease or change in any way. This allows the policyholder to secure the same amount of coverage they initially opted for, maintaining the financial protection intended for their beneficiaries.

This understanding highlights how paid-up options function in life insurance, assisting policyholders in ensuring long-term security for their loved ones without added financial burden.