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Investments glossary

Automatic Premium Loan


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Quotes of the day:

Reality is the crutch for people who can\'t cope with drugs.

— Lily Tomlin

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

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