Automatic Premium Loan Provision

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Automatic Premium Loan Provision

In some whole life insurance policies, a clause providing for a loan from the policy's cash value in the event the policyholder does not pay the premium. The automatic premium loan provision mandates the payment of the premium with this loan in order to prevent the lapse of the policy.
References in periodicals archive ?
Many companies provide an automatic premium loan provision, but the policyowner must in some states actively elect to make the feature operative.
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