Meaning of the term "Paid Up Policy" in Life Insurance (calculation of Paid Up Value)

Paid-Up Policy (Applicable only to Life Insurance):-

If an insured is unable to continue to pay premiums on his life policy, he may discontinue the payment and convert the policy into a “Paid-up” policy. The insured amount, in that case, will be reduced to a figure ascertained according to the following formula:

•  Paid-up value =    ( No. of premium paid x Sum assured )/Total No. of premium payable
• Other conditions of the policy, however, will remain unchanged.