Automatic Premium Loan
A feature in some permanent life insurance policies that allows the insurer to automatically borrow from the policy's cash value to pay the premium if it's not paid by the due date.
Detailed Explanation
This helps prevent the policy from lapsing due to missed payments.
Practical Example
Michael forgot to pay his life insurance premium one month. Luckily, his whole life policy had an automatic premium loan feature, so the insurer automatically took the premium payment from his policy's cash value, keeping his coverage in force.
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