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

The Automatic Premium Loan (APL) provision is a feature typically found in some types of permanent life insurance policies, such as whole life insurance. This feature allows the insurer to automatically take the premium due from the cash value of the policy if the policyholder fails to pay the premium before the grace period ends. Thus, it ensures that the policy remains in force even if premium payments are missed.

Decreasing term insurance is a form of term life insurance where the coverage amount decreases over time, usually in conjunction with paying off a debt or mortgage. Since term insurance is not designed to accumulate cash value, the Automatic Premium Loan provision is not applicable. This type of policy focuses solely on providing a death benefit for a specified term rather than also serving as a savings vehicle, which makes APL irrelevant for this product.

In contrast, whole life policies are designed to build cash value, allowing for APL to be applicable. Universal life insurance shares some cash-value attributes as well and could also use the APL option. Term insurance, generally, does not have this feature because it does not build cash value. Therefore, the correct answer reflects that decreasing term insurance specifically does not allow for the Automatic Premium Loan provision due to the lack of cash value accumulation inherent in this