AUTOMATIC PREMIUM LOAN PROVISION Sample Clauses

AUTOMATIC PREMIUM LOAN PROVISION. If on any premi um due date there is a Cash Value, and if this policy has not been previously surrendered to the Company, the amount of any premi um then due and not paid before the end of the Grace Period, will be advanced automatically by the Insurer as a loan, provided that, foll owing the advance, the indebtedness on the next premium due date would not exceed the Total Cash Value of the policy. If the advance of the full premium would create an indebtedness on the next premium due date, then only a proportion of the premium will be advanced as a loan, and the policy will be continued in force for the same proportion of the premium period. This proportion will be determined by the Insurer, but if on any date the total indebtedness exceeds the Total Cash Value, this will be sufficient to terminate the contract. Any amount advanced in accordance with the provision will be charged as indebtedness from the due date of the unpaid premium. Premium payments may be resumed at any time before the policy terminates by payment of the amount of the premiums charged as indebtedness against the policy. Interest will be charged at a rate determined by the Insurer. Settlement Options
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