If a policy loan is unpaid, the automatic premium loan provision has effect of deducting the amount of the loan with interest from the death benefit. What should the policyholder do to avoid this reduction in the death benefit?

If a policy loan is unpaid, the automatic premium loan provision has effect of deducting the amount of the loan with interest from the death benefit. What should the policyholder do to avoid this reduction in the death benefit?



Answer: Repay the loan with interest

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