What Is Reduced Paid Up Whole Life Insurance? 
Reduced paid up whole life insurance is a policy for which the policy owner no longer wanted to pay premiums , but did not want to lose the death benefit . Rather than surrender the policy , or take the cash value , the policy owner decided to turn the policy into a reduced paid up whole life insurance policy . It has a lower death benefit than the original face amount of the policy , but requires no more premium payments and will pay out the stated , reduced benefit when death occurs . 