• Automatic premium loans allow you to apply the cash value of a permanent life insurance policy to past due premium payments.

  • As the name suggests, this will be done automatically if premium payments are past due by a certain amount of time.
  • The goal is to avoid the expiration of the policy, which will lead to the termination of coverage.
  • The payment is structured like a political loan and will therefore also require interest payments.
  • Automatic premium loans are only possible if the cash value of the policy is equal to or greater than the outstanding premium.