Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A no-lapse guarantee provision on a universal life policy provides that the death benefit will be maintained even if the cash value is depleted, as long as:
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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 or guaranteed premium guarantee) keeps a universal life death benefit in force even when the policy's cash value drops to zero, provided the policyowner pays the required premiums on time as scheduled. Without the guarantee, a UL policy with insufficient cash value would lapse. This feature gives policyowners certainty that coverage will not end unexpectedly.
Why the other options are wrong
- B) The guarantee does not depend on ongoing medical exams; it depends on meeting the premium schedule.
- C) Conversion to whole life is not required to keep the guarantee active.
- D) A single premium is not required; the guarantee works with the scheduled premium pattern, including level monthly or annual premiums.
Memory hook
No-lapse guarantee = pay the required premiums and the death benefit stays, even if the cash value hits zero.