When the SBP paid-up feature is triggered, what happens to premiums and coverage?

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Multiple Choice

When the SBP paid-up feature is triggered, what happens to premiums and coverage?

When the SBP paid-up feature kicks in, the policy moves into paid-up status. That means you stop paying premiums, but the insurance coverage continues—however, at a reduced amount. The insurer uses the existing funds (cash value and premiums paid) to convert the policy into a smaller, permanently in-force death benefit with no further premium payments due. This preserves some protection even though the full original coverage isn’t kept. The other ideas—premiums rising, coverage ending, or premiums doubling—don’t align with how paid-up status works, which is specifically about stopping payments while keeping coverage at a reduced level.

When the SBP paid-up feature kicks in, the policy moves into paid-up status. That means you stop paying premiums, but the insurance coverage continues—however, at a reduced amount. The insurer uses the existing funds (cash value and premiums paid) to convert the policy into a smaller, permanently in-force death benefit with no further premium payments due. This preserves some protection even though the full original coverage isn’t kept. The other ideas—premiums rising, coverage ending, or premiums doubling—don’t align with how paid-up status works, which is specifically about stopping payments while keeping coverage at a reduced level.

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