Definitions for "Automatic premium loan provision"
A permanent life insurance policy nonforfeiture provision that allows an insurer to automatically pay an overdue premium for a policyowner by making a loan against the policy's cash value as long as the cash value equals or exceeds the amount of the premium due. See also nonforfeiture options.
A life insurance provision under which cash values are automatically used to pay premiums if regular premiums are not paid when due.
This authorizes insurer to pay any premium in default automatically at the end of the grace period and charge the amount so- paid against the life insurance policy as a policy loan.