Glossary
Secondary guarantee
A universal life feature that keeps coverage in force for a set period or for life, even if account value hits zero, as long as required premiums are paid.
Also called: no-lapse guarantee, lapse protection guarantee, no-lapse rider
A secondary guarantee, often called a no-lapse guarantee, promises that a universal life insurance policy won't lapse during a stated period, which might run to age 90, 100 or 121 or for a set number of years, even if the cash value falls to zero. It's "secondary" because the policy's primary test for staying in force is whether the account value covers monthly charges; the guarantee overrides that test.
To keep the guarantee, the owner must meet its funding requirement, usually tracked through a specified cumulative premium or a "shadow account" calculated with more favorable assumptions than the real account. Pay late, pay less, or take a loan or withdrawal, and the guarantee can shorten or end, sometimes permanently, though some policies allow catch-up payments. Hypothetically, an owner who pays $3,000 every year keeps a lifetime guarantee, but skipping two years might cut the guarantee to age 85.
Guaranteed universal life, built around this feature, offers permanent coverage for less than whole life, with little cash value. The trade-off is rigidity: paying on time matters more than with ordinary universal life. See no-lapse guarantees on universal life: how they work and guaranteed universal life: permanent coverage without the cash.
Last reviewed October 4, 2026