automatic premium loan

  • A procedure whereby the company, if previously requested to do so, will make automatic loans against the cash value of the policy in order to pay premiums that have not otherwise been paid by the end of the grace period.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).