What do you understand by Paid Value?

The paid value is an amount when the insurance policyholder stops paying the premiums after a specific duration but does not withdraw the amount. The policyholder gets the amount at the end of the term. In this case, the insurance company provides an assured amount but is reduced proportionally according to the time when the policyholder has stopped paying the premium.

The deduction from the matured amount depends on how soon before the maturity period that person has requested the paid value. In other words, we can say that when a person who has purchased insurance stops paying premiums after a specific duration, the insurance policy remains active but with a lower assured amount. This reduced amount is called paid value or paid-up value.