A provision in a life insurance policy that any premium not paid by the end of the grace period (usually 31 days) is automatically paid by a policy loan if there is sufficient cash value. Skip alphabetic navigation to B
An optional policy provision that allows the insurer to pay an overdue premium on a life insurance policy by making a loan against the policy's cash value.
A loan provision in a life insurance policy allowing any premium not paid by the end of the grace period (usually 30 or 31 days) to be paid automatically through a policy loan if cash value is sufficient.
This is a non-forfeiture feature that is available for whole life insurance policies. If for some reason the policyowner does not make the planned premium payment, it will be taken as a loan against the policy and the policy will remain in force. ()
A policy loan, secured by the cash value of the certificate, to be used to pay a premium which remains unpaid at the end of a 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.
An option under some fixed premium policies, whenever a premium is not received by the end of the grace period (usually 30 or 31 days), to create automatically a policy loan for the amount necessary to pay the premium. When the remaining net cash value is no longer sufficient to cover a premium due, the policy will lapse with no (or minimal) net cash value unless premium payments are resumed in cash.
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.
A life insurance policy provision that allows the insurer to pay an overdue premium on a policy by making a loan against the policy's cash value.
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.
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.
A provision in some life insurance policies that authorizes a policy loan using the cash value accumulated by the insurance policy to pay for past due premiums at the end of the grace period. This prevents a lapse of coverage. RETURN TO THE TOP
A policy non-forfeiture provision which is typically elected at the time of application. It specifies that any unpaid premium will automatically be paid through a premium loan at the end of the grace period.
A section in a life insurance policy that provides that if premium is not paid by the policyholder within the allotted time after the due date, the amount of the premium will be loaned to him automatically. It is limited to the cash value of the policy and ceases when the cash value of the policy is insufficient to cover the loan, plus interest on the loan.