3.11.2 Reduced Paid-Up Insurance
Under the reduced paid-up insurance option, the policyowner may request that the cash value of the policy be used to pay for the policy itself. This action would not terminate the policy, but would keep a reduced amount of paid-up insurance in force under the same policy.
Most policies contain a table that illustrates how much the cash value in any given year would reduce the face amount of the policy in that same year. This option allows the policy, though reduced, to continue to earn interest, increase cash value and pay dividends.
Remember that reduced paid-up policies are the same type of insurance as the original policy except that all riders, including those for disability and accidental death, are eliminated.