Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A universal life policy includes a no-lapse guarantee rider. The primary benefit of this rider is that it:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The no-lapse guarantee, or no-lapse provision, rider protects against lapse caused by low cash value in a universal life policy. As long as the policyowner pays the required premium amount on schedule, the policy stays in force even if the cash value is not enough to cover monthly charges. The guarantee does not fix interest crediting rates, does not waive premiums, and does not increase the benefit. It is commonly sold with guaranteed universal life products to give the owner assurance that coverage will remain in force for the guaranteed period.
Why the other options are wrong
- B) The rider guarantees coverage, not an interest rate; crediting rates are set separately by the insurer.
- C) Premiums are still due under the rider; it guarantees the policy stays in force when they are paid, not that they are waived.
- D) The death benefit amount is unchanged; the rider protects against lapse, not benefit increases.
Memory hook
No-lapse = pay the promised premium and the policy cannot die, even when the cash value tank runs low.