Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A no-lapse guarantee rider on a universal life policy is designed to:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The no-lapse guarantee, also called a secondary guarantee, ensures that a universal life policy stays in force for a defined period, commonly to a stated age or for a term of years, as long as the policyowner pays at least the required minimum premium, regardless of whether the policy's cash value is sufficient to cover monthly mortality and expense charges. Without it, a UL policy can lapse when interest rates fall or expenses rise. The guarantee is conditional on meeting the premium payment schedule.
Why the other options are wrong
- B) The guarantee is about keeping coverage in force, not guaranteeing interest rates on the cash value.
- C) The guarantee addresses lapse, not a never-decreasing death benefit.
- D) Premiums are still required under the rider's payment schedule; they are not waived.
Memory hook
No-lapse guarantee = pay the minimum and stay insured, even if the cash value runs dry.