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Group paid-up insurance
A type of contributory group
life insurance in which the employee's contributions
are used to purchase paid-up whole life insurance
and the employer's contributions are used to purchase
term insurance. The amount of insurance coverage
on each employee remains level each year. Therefore,
as the amount of paid-up insurance on an employee
increases over time, the amount of term insurance
which the employer must purchase to make up the
difference decreases. |
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