Our Automatic Premium Loan automatically covers any unpaid premiums. The advantage is that you’ll continue to be covered by your insurance plan.
How it works: Should any premiums not be paid, we’ll first offer a grace period, giving you a little more time to pay. After that, if your policy has sufficient cash value, we’ll trigger an Automatic Premium Loan. We’ll let you know about this by sending a text.
Essentially, this means we’ll use the cash value of your policy as a loan to pay the outstanding premiums.
You’ll then need to repay the loan at our current interest rate, according to the terms of your policy. The interest will be back-dated and calculated from the date the premium was due.
If your policy’s cash value doesn’t cover the cost of the outstanding premium, your plan will be surrendered and you’ll no longer be covered by your policy.