Overloan Protection Rider question
I have a general question concerning one of the triggers (requirements) for an overloan protection rider. Let us use a UL policy as an example. This type of rider prevents a policy from lapsing if the loan balance reaches a specified percent of the account\cash surrender value. A typical rider would probably also contain a few other triggers\requirements, like insured reaches attained age X and policy remained inforce for at least Y years. The purpose of the rider entails preventation of a taxable event (at an advanced age) because a relatively excessive loan balance caused the policy to lapse. If the rider meets the requirements previously listed, the company will not lapse the policy (for a fee). Another trigger requires that the loan balance exceed the specified death benefit (face amount) or equivalently that the policy entered the IRS death benefit corridor (AV times corridor factor exceeds FA). Could someone please explain the purpose of this requirement? Thank you.