Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A no-lapse guarantee feature on a universal life policy:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A no-lapse guarantee, sometimes called guaranteed lapse protection, on a universal life policy provides that the policy will not lapse for a stated period — often to a specified age or for a set number of years — as long as the policyowner pays the required minimum premium, even if the account value drops to zero because of market or charge experience. This protects against the risk that UL cash values erode. It is not a cash-value guarantee, does not waive premiums, and does not double the death benefit; it guarantees persistence of coverage, not accumulation.
Why the other options are wrong
- B) The no-lapse guarantee concerns the policy remaining in force, not a guaranteed minimum cash value. Cash-value guarantees are a separate feature.
- C) Premiums are not waived. The owner must continue paying the required minimum premium to keep the no-lapse guarantee effective.
- D) No such doubling of the death benefit at age 65 is part of a no-lapse guarantee, which only protects the policy against lapse.
Memory hook
Pay the minimum, stay insured — no-lapse keeps UL alive even when the account hits zero.