What is a No-Lapse Guarantee?
A no-lapse guarantee provides an agreement by the insurance company to keep a permanent life insurance policy in force – even if the cash value in the policy drops to zero, or less than zero, provided that a specified minimum continuation premium is made at the required time. This can essentially prevent the plan from otherwise lapsing.
Essentially, a no-lapse guarantee can provide a policy holder with a guaranteed death benefit, for life, for a certain amount – even if their cash value component has nothing in it. This death benefit guarantee is, however, contingent upon the timely payment of their policy premiums.
How To Get This Type of Policy
This type of provision is typically found in guaranteed universal life insurance contracts.
This varies from the guarantee issue life insurance rider that allows you to be guaranteed coverage without proving insurability.
GUL are great plans for individuals who need permanent protection and have no desire for cash value. An GUL is the most affordable way for an individual to get permanent life insurance coverage.
Great Potential For Cash Later In Life
GUL’s not only offer a no-lapse provision, but they also lock in a level premium for the life of the policy, which makes them an excellent opportunity for life settlement companies.
As you age and you no longer need the policy, or if your health takes a turn for the worse, these plans can be sold for cash to life settlements companies.
Getting a Quote
It’s easy to get quotes for this type of policy. In our quote engine, you can instantly compare the best GUL no lapse carriers in the county. It takes about 30 seconds. Just click the green button in the sidebar after you select your desired coverage amount.