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Automatic Premium Loan Provision

Automatic policy loan will be made from the policy's cash valueto pay the premium at the end of the grade period if the premium due has not been paid yet.
This rider provides that a policy loan will automatically be made from the policy's cash value to pay the premium at the end of the grace period if the premium due has not yet been paid. This helps to prevent an unintentional lapse in the policy. The reason as to why this provision is highly recommended is that there are numerous circumstances when a premium payment may have inadvertently gone unpaid resulting in the termination of the policy. Also, the cash surrender value must be at least equal the loan amount plus a year of interest. This provision must be elected by the policy owner and can be cancelled at any time by the policy owner.



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