A No-Lapse Guarantee is a feature in some life insurance policies that ensures the policy remains active, even if cash value becomes too low to cover monthly charges. As long as certain premium conditions are met, the policy won’t lapse even during financial fluctuations.
This guarantee provides peace of mind for policyholders, as it protects against accidental lapses due to insufficient cash value. It’s especially valuable for universal life policies, where premium flexibility can sometimes lead to coverage risks.