Universal Life Insurance
What is a universal life secondary guarantee?
A universal life secondary guarantee (also called a no-lapse guarantee) is a provision that guarantees the policy will remain in force as long as you pay the required minimum premium, regardless of the policy's cash value performance. The secondary guarantee protects against policy lapse if the cash value is depleted.
Key Points
- Secondary guarantee: policy stays in force as long as you pay minimum premium
- Protects against policy lapse if cash value is depleted
- Required minimum premium: lower than the target premium
- Important for universal life policies with low cash value
- An independent agent can help you understand secondary guarantees