There is a ‘no lapse guarantee’ as long as certain minimum premium payment is paid at a certain period, which means that the policy will remain in force for the period of the guarantee even in instances where the cash values drops to zero (source:http://en.wikipedia.org/wiki/Universal_life_insurance) For as long as the owner continuously pays the minimum amount, the policy will not lapse. The owner has the option to reduce or even stop making payments without the risk of the policy lapsing, for as long as the policy builds cash value. Universal Life Insurance policies can last a very long time (for example: 100 years onwards) depending on the policy itself as opposed to that of a Term life Insurance wherein it will lapse after a short period of time (for example : 10 years onwards).
