An optional provision in life insurance that authorizes the insurer to pay from the cash value any premium due at the end of the grace period. This provision is useful in preventing inadvertent laps [..]

 An option which may be available on certain policies to automatically pay premiums in default at the end of the grace period by charging the amount against the policy as a policy loan.

A loan granted by a life insurance company to a policyholder using the cash value of the life policy to pay any premiums due at the end of the grace period of the same policy. The loan is automatic as [..]

  A provision selected by the policy owner of Whole Life Insurance that will automatically create a loan against cash values to pay the premium if it has not otherwise been paid prior to the end of the grace period.

A life insurance nonforfeiture option that allows the insurer to pay overdue premiums on a policy by establishing a loan against the policy's cash value. See also NONFORFEITURE OPTIONS.

Cash borrowed from a life insurance policy's cash value to pay an overdue premium after the grace period for paying the premium has expired.

A loan granted by a life insurance company to a policyholder using the cash value of the life policy to pay any premiums due at the end of the grace period of the same policy. The loan is automatic as [..]

A provision in a life insurance policy that any premium not paid by the end of the grace period (usually 30 or 31 days) will be paid automatically by a policy loan if there is sufficient cash value.

An insurance policy provision that allows the insurer to deduct the amount of the outstanding premium from the value of the policy when the premium is due. Automatic premium loan provisions are most commonly associated with life insurance policies, and allows the policy to continue to be in force rather than lapsing.

A provision in a life policy authorizing the insurer to use the loan value to pay any premiums still due at the end of the grace period.

Cash borrowed from a Life Insurance policy's cash value to pay an overdue premium after the grace period for paying the premium has expired.

A procedure whereby the company, if previously requested to do so, will make automatic loans against the cash value of the policy in order to pay premiums that have not otherwise been paid by the end [..]