Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A universal life policy has a no-lapse guarantee rider. Under this rider, coverage will remain in force as long as the policyowner:
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
A no-lapse guarantee (secondary guarantee) rider keeps a universal life policy in force as long as the policyowner pays the required minimum premium each period, even if the cash value is insufficient to cover monthly deductions and falls to zero. This gives the policy a guaranteed coverage period (often to a very old age or for life) despite poor policy performance. The guarantee is conditional on meeting the specified premium schedule.
Why the other options are wrong
- B) The no-lapse guarantee is based on premium payments, not on maintaining a specified cash-value percentage.
- C) No medical exams are required to keep the rider in force; the guarantee is a contractual promise tied to premium payment.
- D) The requirement is the minimum premium, not the full face amount of premiums; paying the minimum is what activates the guarantee.
Memory hook
No-lapse guarantee = pay the minimum, and the policy survives even when the cash value hits zero.