What occurs when the investment value of a paid-up policy is exhausted?

When the investment value of a paid-up policy is exhausted, the policy will cease. This means that there are no more funds available in the investment component of the policy to cover the cost of insurance or provide any benefits. Paid-up policies typically remain in force without requiring further premium payments; however, they rely on the accumulated investment value to sustain coverage. Once this value is depleted, the policy cannot provide any further insurance coverage or benefits and effectively ends.

In the context of this question, the other options do not accurately reflect the status of a paid-up policy when its investment value is exhausted. For example, the notion that the policy might continue indefinitely is not applicable, as coverage is contingent upon having sufficient investment value. Additionally, the idea of renewing the policy by paying additional premiums is not relevant since a paid-up policy generally does not allow for further premium payments after it has been rendered paid-up. Partial withdrawals are also not an option in this scenario; while some policies may allow for withdrawals during their active period, once the investment value is exhausted, such actions would not be viable.