Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A no-lapse guarantee rider on a universal life policy provides which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A no-lapse guarantee (also called a secondary guarantee) rider ensures that a universal life policy stays in force as long as the owner pays the stipulated minimum premium, even if the cash value is insufficient to cover monthly charges. The guarantee typically extends to a specified age, such as 100, giving the owner the certainty of a term-like guarantee within a permanent product. The primary purpose is protection against lapse caused by poor crediting performance.
Why the other options are wrong
- B) The rider does not guarantee any rate of cash value growth; it only guarantees the policy will not lapse.
- C) Premiums are not waived; the rider requires the minimum premium to be paid to keep the guarantee alive.
- D) The rider does not increase the death benefit; the benefit remains as stated in the policy.
Memory hook
No-lapse guarantee: keep paying the minimum and the policy cannot die early, no matter what the cash value does.