Which provision would keep a Whole Life policy in effect if the premium payment is missed, given there’s adequate cash value?

The Automatic Policy Loan provision is designed specifically to prevent a whole life insurance policy from lapsing due to missed premium payments, provided there is sufficient cash value accumulated in the policy. When a premium is missed, if this provision is in place, the insurer can automatically use the cash value to pay the overdue premium. This ensures that the policy remains in force despite the missed payment, thus providing continued coverage for the policyholder without requiring additional out-of-pocket expenses at that moment.

This is particularly beneficial because it helps to maintain the insurance coverage and protect the policyholder's beneficiaries from the consequences of a lapsed policy. Using the cash value in this way does not require any action from the policyholder, offering a level of convenience and security during times when a payment might be missed.

Other options, such as the Grace Period, allow for a specific timeframe in which a premium can be paid after the due date without losing coverage. However, if the premium isn't paid within that timeframe, the policy could still lapse. Policy Surrender involves terminating the policy entirely, which would not keep it in effect, and Paid-Up Additions are additional coverage purchased using dividends, which would not directly address the issue of a missed premium payment. Thus, the Automatic Policy Loan provision