automatic premium loan clause
Definition
Provision in some life insurance policies under which (if the due premium remains unpaid after the end of grace period) an automatic loan from the policy's 'cash surrender value' is advanced to cover the premium. This clause prevents lapse of policy due to an accident, illness, or inadvertence.
Popular 'Disaster Planning & Risk Management' Terms
automatic premium loan clause in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/automatic-premium-loan-clause.html
