Should you allow your policy to become a Paid-up one?

NO. Once a policy becomes a paid-up one, the sum assured is reduced to such a pitiful figure that it cannot provide any cover to the policyholder or his dependants. Besides, you should also consider the facts that

The cost of insurance goes up with advancing age. The next time you obtain a policy, the terms will not be as advantageous as available earlier.


The chances of insurability also diminish with the advancement of age despite the fact that insurance is needed more along with increasing age and growing responsibilities


The reinstatement of a policy once converted into a paid-up policy requires numerous cumbersome formalities to be completed


A paid-up policy cannot participate in the bonus declared by LIC


LIC will not issue a fresh policy for at least 3 years in case an earlier policy of yours stands lapsed or was converted into a paid-up one.
It is strongly advised that you should NOT allow any of your policies to become paid-up policies.
Avdhoot Investment