In long-term care insurance, it is generally the operation of a non-forfeiture feature under which the enrollee's coverage continues for some period based on the amount of premiums paid when the policy lapses. Methods for providing the paid-up policy may include full benefits for a shorter benefit period or partial benefits for the full original benefit period. Some policies also have a provision which pays up the policy under specified conditions upon the death of an insured spouse. Some companies offer limited or single payment premium modes that result in paid up policies when a specified number of annual premiums have been paid.

This definition is in context to Health Care. See more contextual defintions for Paid-Up Policy.