reduced' paid'-up insur'ance Pronunciation:(pād'up"),[key] life insurance in which a nonforfeiture value is used to purchase a reduced amount of fully paid-up insurance of the same kind as the surrendered policy. Random House Unabridged Dictionary,Copyright © 1997, by Random House, Inc...
The meaning of PAID-UP ADDITION is addition to an existing insurance policy by using the annual dividend allotment to buy more insurance.