APL, or Automatic Premium Loan, is a life insurance policy provision that allows the insurer to automatically pay overdue premiums by taking a loan against the policyTMs cash value when there is sufficient value to do so. The feature helps prevent unintended policy lapses by using available cash value to cover missed payments, with the loan accruing interest and reducing the policyTMs net cash value and death benefit over time. APL provisions are common in traditional whole life and some universal life contracts and are generally elected at policy issue or added upon request. While APL can be a valuable safety net, unmanaged loans can eventually exhaust policy values and cause lapse if not addressed.

Advisors explain APL when setting up permanent policies, highlighting that it can keep coverage in force during temporary cash-flow disruptions. During annual reviews, they check for automatic premium loans on statements and discuss repayment or premium adjustments to prevent loan balances from growing unsustainably. Carriers may send notices when APLs begin, prompting advisors to reach out to clients proactively. In policy rescue situations, understanding how much of the premium is being carried by loans is critical to designing corrective strategies. Understanding APL helps advisors balance convenience and protection against the long-term cost of accumulating policy debt.