Extended No-Lapse Guarantee

An Extended No-Lapse Guarantee (ENLG) in the context of Indexed Universal Life (IUL) insurance refers to a feature that ensures the policy will remain in force, even if the cash value drops to zero or becomes negative, provided that the premium payments are made as specified by the guarantee.

This provision is designed to protect the policyholder from market volatility and other factors that could otherwise cause the policy to lapse.

Essentially, the ENLG acts as a safety net, ensuring that the life insurance coverage continues uninterrupted for a predetermined period of time, which could range from a certain number of years to the lifetime of the insured.

This is especially beneficial in scenarios where the returns on the indexed account are lower than expected.