What Does Automatic Premium Loan Provision Mean?

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What does Automatic Premium Loan Provision mean? Read on to discover the definition & meaning of the term Automatic Premium Loan Provision - to help you better understand the language used in insurance policies.

Automatic Premium Loan Provision

Automatic Premium Loan Provision

An automatic premium loan provision is a clause in a whole life insurance policy. It states that should a policyholder fail to make a scheduled premium payment, money from the accumulated cash value of the policy will be withdrawn and used as a loan to pay the owed premium.

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

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