Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

The Automatic Premium Loan provision is a feature commonly found in certain types of life insurance policies. This provision is designed to prevent a policy from lapsing due to non-payment of premiums by automatically using the cash value of the policy to pay the premium when it becomes due.

Decreasing Term insurance is a type of policy that provides coverage for a specific period and the death benefit decreases over time, typically aligned with the repayment schedule of a corresponding debt, such as a mortgage. Since it does not accumulate cash value, there is no savings element that could be utilized to pay premiums. Therefore, the Automatic Premium Loan provision is not applicable to this type of policy.

In contrast, both Modified Whole Life and 20-Pay Life policies do accumulate cash value, making them suitable candidates for the Automatic Premium Loan provision. Endowment policies also have a cash value component and can include this feature as they, too, are designed to provide a benefit after a specified period or upon death.