What is referred to as paid-up insurance?

Paid-up insurance refers to an insurance policy that no longer requires premium payments due to the accumulation of sufficient cash value within the policy to keep it in force for the policy's specified amount of time. This feature is particularly common in whole life and certain types of term insurance policies when the policyholder has made enough payments to cover the cost of insurance. Once the policy is paid-up, the insured is fully covered without needing to make additional premium payments, resulting in a significant benefit for the policyholder.

The other options relate to different aspects of insurance policies. Some describe policies that require future premiums, or they refer to policies that have not accrued sufficient cash value, thus necessitating ongoing premium payments to remain active. The unique feature of paid-up insurance is its ability to provide continued coverage without further financial commitment, which makes option D the most accurate definition.