automatic premium loan

automatic premium loan definition - business

automatic premium loan

A provision of life insurance policies that permits the insurance company to take out a loan against a policy's cash value in order to pay an overdue premium on the policy.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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