For instance, a limited payment life insurance is a type of policy with premiums that are fully paid up within a stated period. For example, a 20-payment life insurance policy has 20 annual premium payments, with no further premium to be paid.
Paid up just means that you no longer need to make premium payments on the policy. It does not mean there is a cash value or if there is a surrender charge.
If you terminate the policy you may get a partial refund.
Here's how you can learn more about whole life insurance and how it works.