An automatic premium loan provides an open-ended line of credit from which the policyholder can borrow money.

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An automatic premium loan is a provision in a life insurance policy that allows the insurer to use the policy's cash value to pay premiums that have not been paid by the end of the grace period, preventing the policy from lapsing, rather than providing a line of credit for the policyholder to borrow money.

An Automatic Premium Loan Provides an Open-Ended Line of Credit