What is “Reduced Paid Up” LIC policy

POSTED BY Vineet ON December 26, 2011 2:38 pm COMMENTS (8)

Hi,
I had taken LIC policy Jeevan Shree (A Mistake!) in 2000. I stopped paying premiums for this policy in 2007. Now on LIC site policy status shows as “REDUCED PAID UP”. What does this status mean? Is sum assured affected by this status?

8 replies on this article “What is “Reduced Paid Up” LIC policy”

  1. Devanshu says:

    Is it possible to start the policy again if I pay the remaining preminum amount.

  2. Praveen says:

    Hi, now my Policy status is showing “REDUCED PAID UP” and past 3 yrs I am t paying the premium. Is it possible to pay the premium from now on words.

    1. Hi Praveen

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  3. ashalanshu says:

    Dear Nikunj, please contact your LIC branch to get the exact details about paid up value. this paid up value with out any more addition ‘ll be given to you at the maturity of your policy. The sum assured is also equal to your paid up value now.

    Thanks

    Ashal

  4. Nikunj says:

    Hi, I have the same doubt as Vineet

    Even i had(or shall i write have) a endowment policy from LIC, and i didn’t pay the premium last year.
    Now when i see the policy status, it shows as “REDUCED PAID UP”
    However, the sum assured is the same as before.

    My doubts

    1) How do i know what is my currect sum assured?
    2) Now that i see the policy is converted to REDUCED PAID UP, which actually i wanted to do. Do i have to intimate LIC that i ll not be paying the premiums going forward
    3) What happens after maturity? What shall be my maturity amount as i will not be paying any premiums going forward

  5. Vineet says:

    Thanks Justgrowmoney and Ashal. I know concept of Paid up policy. My question is that is there any difference between paid-up and reduced paid up? Also I understand that bonuses would not be applicable. But what about insurance cover? Does sum assured gets changed (From what I see on LIC site, sum assured is not reduced yet, but will it remain same till maturity of policy?)

  6. Dear Vineet, in simple words, your policy is made paid up due to non payment of prem. & fresh bonus addition has been stopped. A value has been assigned to your policy, which ‘ll be available either at the time of maturity or at the time of your death before maturity.

    Thanks

    Ashal

  7. Yes, The policy is now a Paid up policy with a lower sum Assured. You are eligible for all bonuses declared until 2007 but not beyond.

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