Which provision helps keep a policy in force in the event of premium default?

The provision that helps keep a policy in force in the event of premium default is the automatic premium loan. This feature allows the insurance company to automatically take a loan against the policy's cash value to cover the premium payment if the policyholder fails to make the premium payment by the due date. This prevents the policy from lapsing and ensures that the policyholder remains covered without the need for immediate payment.

The automatic premium loan is particularly beneficial for policyholders who may experience temporary financial difficulties, as it provides a safety net that keeps the life insurance coverage intact. If premiums are not paid, the cash value serves as collateral for the loan, allowing the policy to remain active until the policyholder can resume payments or until the loan exceeds the cash value.

Other options, such as cash surrender value, extended term option, and waiver of premium, serve different purposes. Cash surrender value pertains to the amount an insured receives if they choose to cancel their policy. The extended term option allows for the continuation of coverage for a specified period using the policy's cash value but does not actually cover missed premium payments directly. Waiver of premium provides relief by waiving premium payments in the event of the policyholder's disability but does not address a scenario of general premium default without