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Insurance

Paidup Value

In the realm of insurance, the term "paid-up value" refers to the decreased sum assured that an insurer will provide if the policyholder stops making premium payments after the initial three-year period. In other words, this value represents the reduced coverage amount that the insurer will pay out in the event of premature termination of premium payments. It is an important concept to understand in the world of finance and insurance, as it directly impacts the benefits and coverage that a policyholder can expect.
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