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Insurance & Risk Management
11. Chapter 12: Life Insurance Contractual Provisions/Life insurance contractual provisions
11. Chapter 12: Life Insurance Contractual Provisions Illustration
Syllabus Slides

Life insurance contractual provisions

01.Core Concepts

Under the automatic premium loan provision, an overdue premium is automatically borrowed from the cash value after the grace period expires The automatic premium loan prevents the policy from lapsing because of non-payment of premiums It may be overused and exhaust the cash value Proceeds will be reduced if the premium loans are not repaid by the time of death ‹#›