In this series, we will walk you through many common features of a typical universal life insurance policy.

No Lapse Guarantee Rider

The flexibility of a universal life policy — specifically your ability to change payment dates and premium and coverage levels — is a valuable feature, but your life insurance coverage depends on your policy having enough cash surrender value to cover the monthly policy charges. If you're willing to place some limits on your premium paying flexibility, you may want to mitigate this risk by electing the No Lapse Guarantee Rider (NLGR).

This rider ensures that if you fund the policy at the premium level required to maintain the guarantee, the policy will not lapse, even if the cash surrender value is not sufficient to cover the policy's monthly charges. This feature can allow your coverage to be continuous through any circumstance. The NLGR also includes a "catchup" provision that provides some flexibility in case you need to reactivate the guarantee after missing one or more required premiums within the first ten policy years. You also have the option to prepay the rider's required premiums and that can provide you with an opportunity for long-term out-of-pocket savings.