What Does Automatic Premium Loan Clause Mean?

Free Business Insurance Quote Click Here
What does Automatic Premium Loan Clause mean? Read on to discover the definition & meaning of the term Automatic Premium Loan Clause - to help you better understand the language used in insurance policies.

Automatic Premium Loan Clause

Automatic Premium Loan Clause

Provision in some life insurance policies under which (if the due premium remains unpaid after the end of grace period) an automatic loan from the policy's 'cash surrender value' is advanced to cover the premium. This clause prevents lapse of policy due to an accident, illness, or inadvertence.

We hope the you have a better understanding of the meaning of Automatic Premium Loan Clause.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


Free Business Insurance Quote Click Here