Which provision protects against the unintended lapse of a policy due to nonpayment of premiums?

The Automatic Premium Loan Provision is designed to prevent the unintended lapse of a life insurance policy due to the nonpayment of premiums. When this provision is in place, if a policyholder fails to pay the premium by the due date and the policy has accumulated sufficient cash value, the insurer will automatically use that cash value to cover the premium payment. This allows the policy to remain in force instead of lapsing, even if the premiums are not paid in cash.

This feature is particularly helpful for policyholders who may temporarily be unable to make premium payments but want to ensure their coverage continues without interruption. The automatic loan occurs until the cash value is exhausted or the policy lapses, at which point the policyholder will need to address the outstanding cash value loan or make further premium payments to keep the policy active.

Understanding this provision is key for both agents and policyholders, as it provides an essential safety net that ensures protection is maintained against potential financial difficulties.