The automatic premium loan provision helps prevent a policy from lapsing by:
Explanation
The automatic premium loan provision, if elected, draws on the policy's cash value to cover a premium that was not paid by the end of the grace period, keeping the coverage in force as a policy loan. It does not borrow from the beneficiary, does not zero out the death benefit, and does not convert the policy to term. This feature guards against unintentional lapse, though it does reduce the cash value and, if unpaid, the death benefit by the loan amount.
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