paidup

Paidup, often written as paid-up, is a term used in insurance and corporate finance to describe a status in which ongoing payments are no longer required or a capital contribution has been fully paid.

In life insurance, a policy is described as paid-up when the policyholder has paid premiums to the point that the policy remains in force without further payments. This situation frequently arises through a nonforfeiture option, where the insurer converts the existing cash value into a reduced paid-up policy with a smaller death benefit. The policy continues for the insured’s life but with no additional premium due. Some plans also allow dividends to be used to purchase paid-up additions, which are additional, fully paid policies that increase both the death benefit and the cash value.

In corporate finance, paid-up capital refers to the amount of money shareholders have actually paid to the company in exchange for issued shares. It is a component of shareholders’ equity and remains fixed unless new shares are issued or capital is returned. Paid-up capital is distinguished from called-up or authorized capital, which may differ from the amount actually paid by shareholders.

Overall, paid-up status signals a form of financial permanence: in insurance, the policy remains in force without further premium payments, while in corporate finance, the capital contributed by shareholders is fully paid and recorded as equity. The precise mechanics and terminology can vary by jurisdiction and policy or corporate charter.