Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A no-lapse guarantee rider on a universal life policy ensures that:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
A no-lapse guarantee, also called a guaranteed death benefit rider, protects universal life coverage from lapsing because of insufficient cash value. If the policyowner pays at least the specified minimum premium each month, the policy remains in force for the guarantee period — often to age 100 or a stated age — even if interest credited and cost-of-insurance charges have driven the cash value to zero. This feature gives the policyowner certainty that the death benefit will be paid, and it is a core element of guaranteed universal life products.
Why the other options are wrong
- A) Policy loans and withdrawals can still reduce the death benefit; the no-lapse guarantee does not shield the benefit from loans.
- B) Premiums are not refunded on early death; a refund during the first two years relates to the suicide clause, not the no-lapse guarantee.
- C) No insurer guarantees a 10 percent cash-value growth rate; guaranteed rates are far lower.
Memory hook
Pay the minimum and the policy survives, even with a zero cash value.