No Lapse Option


There is a guarantee for “no lapse” as long as a certain minimum premium payment for a particular period is paid, meaning that the plan will remain active for the period of guarantee even if the value for the money goes down (more on this can be found on Wikipedia,  search Universal Life Insurance). If the owner continues to pay the minimum amount regularly, the policy is not likely to lapse. The owner has a choice to cut down or even completely stop paying without the threat of the policy lapsing, as long as the policy plan creates value from the money. Universal Life Insurance Policies can go for as long as 100 years and above depending on the type of policy as opposed to Term Life Insurance where it will lapse after a particular period starting from 10 years onwards.