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Paid Up Value Calculator

Work out paid up value instantly with clear inputs, formula shown and shareable results.

About Paid Up Value Calculator

Making a policy paid-up stops future premiums and reduces the sum assured in proportion to the premiums already paid against those originally payable. The reduced cover and any accrued bonuses remain in force to maturity, which is usually better than surrendering.

Formula

Paid-up sum assured

Paid-up value = Original sum assured x Premiums paid / Total premiums payable

Worked example

With the default values below, Paid Up Value Calculator returns Paid-up sum assured of $400,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original sum assured
1,000,000
Number of premiums paid
8
Total premiums payable over the term
20
Accrued bonus to date
150,000

Results

Paid-up sum assured
$400,000.00
Proportion of cover retained
40.00%
Paid-up value including accrued bonus
$550,000.00
Cover given up
$600,000.00

Step by step

  1. 1Values used
  2. 2Paid-up sum assured
  3. 3Paid-up sum assured= 400,000.00
  4. 4Proportion of cover retained= 40.00
  5. 5Paid-up value including accrued bonus= 550,000.00
  6. 6Cover given up= 600,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative calculation. Paid-up formulas, bonus treatment and minimum-premium conditions vary by product and regulator. Not insurance advice.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative calculation. Paid-up formulas, bonus treatment and minimum-premium conditions vary by product and regulator. Not insurance advice.

Frequently Asked Questions

Does the policy continue to earn bonuses?

Usually not after it is made paid-up. Bonuses already accrued are retained and paid at maturity or on death.

Paid-up or surrender?

Paid-up preserves some cover at no further cost, so it is generally preferable unless you need the cash immediately.

Related Calculators

Paid Up Value Calculator – Calculate Paid-up sum assured