3.13.3 Automatic Premium Loan Rider
The automatic premium loan rider is common among cash value policies. If the premium payment has not been made by the end of the grace period, the policy's cash value can be used to make the payments in the form of a cash value loan (bearing the interest rate specified in the contract), producing Reduced Paid-up insurance. When the cash value is depleted, however, the policy will lapse if the owner does not continue to make the payments.
