Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A no-lapse guarantee rider on a universal life insurance policy ensures that:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A no-lapse guarantee (or secondary guarantee) rider on a universal life policy provides that the coverage stays in force as long as the policyowner pays at least the required premiums, regardless of whether the cash value is adequate to cover monthly mortality and expense charges. The guarantee has conditions - premiums must be paid - so it is not an unconditional promise. This rider is described in objective LIFE-III.1h.
Why the other options are wrong
- B) The guarantee is conditional on paying the required premiums; it does not protect against all nonpayment.
- C) The rider addresses lapse, not premium amounts; premiums can still be contractually adjusted.
- D) Cash values can decrease under a no-lapse rider; the rider protects the death benefit, not the account value.
Memory hook
No-lapse guarantee = pay the required premium, keep the coverage, even if cash value runs dry.