For universal life policy owners
Can I Sell My Universal Life Insurance Policy?
Yes, you may be able to sell your universal life policy for a lump-sum cash payment. Through a life settlement, the buyer takes ownership of the policy and responsibility for future premiums. Buyers consider the insured's age and health, future premium costs, policy type, and insurance company.
Little or no cash surrender value can make your policy more attractive to buyers. It lowers the amount an offer needs to exceed and can leave more room for value above surrender.
Citizens Life Group
Check Your Universal Life Policy
Prefer to speak with someone?
(321) 270-0279Citizens Life Group is a licensed life settlement brokerage that represents you, the seller, and shops your policy competitively to maximize your offer.
Have a different type of coverage? See which life insurance policies can be sold.
Cash value and sale value
Can I Sell a Policy With Little or No Cash Value?
Yes. Little or no cash surrender value can be an advantage when selling a universal life policy. Buyers often find these policies easier to purchase because they do not have to exceed a large surrender value to make the sale worthwhile for you.
A high surrender value raises the amount a buyer must pay upfront to offer you a better alternative. A lower surrender value can leave more room for a meaningful gain over surrendering. Compare your net sale proceeds, after fees and any loan payoff, with what the insurer would pay you. Individual results vary.
Cash surrender value
The amount your insurer would pay if you canceled the policy, after applicable charges and loans.
Sale value
What a buyer is willing to offer for the policy. It requires a separate review and is not shown on your insurance statement.
Buyers still review the cost of keeping the policy active. A valid no-lapse guarantee may preserve coverage even with no cash value if its conditions are met. Otherwise, the policy may need additional premiums. Your broker reviews those costs alongside the potential offer.
What buyers review
What Affects Your Universal Life Offer?
Buyers consider age, health, the death benefit, cash surrender value, and future premium requirements together. Low surrender value can help make a purchase attractive, while manageable future premiums help support the offer.
On some universal life policies, cash value helps cover insurance charges. As that value is used up, the planned payment may no longer be enough. A buyer needs to review the future funding, not just today's payment. Higher costs can be a reason to consider selling, but they can also reduce a buyer's offer.
A useful question for your insurer
“How long will my coverage last at the current payment, and what would I need to pay to keep it in force longer?”
An up-to-date in-force illustration, a projection from your insurer, helps answer that question. Assumptions can change, so projected results are not the same as contractual guarantees. If your payments have increased, our guide to rising universal life premiums explains the causes and options.
Your policy's terms
Does My Type of Universal Life Policy Matter?
Yes. Traditional, guaranteed, indexed, and variable universal life policies can all be considered for a sale. The policy name is a starting point; the contract and current funding determine what buyers need to review.
| Policy type | What needs a closer look |
|---|---|
| Traditional universal life (UL) | Current interest crediting, insurance charges, and the premiums needed to keep the coverage in force. |
| Guaranteed universal life (GUL) | Whether the no-lapse guarantee is active, when it ends, and which payment conditions must be met. Cash value varies by contract. |
| Indexed universal life (IUL) | How index-linked interest assumptions affect projected funding, along with charges and any guarantees. |
| Variable universal life (VUL) | How investment subaccount performance affects projected funding, along with charges and any guarantees. |
A guarantee may end at a particular age rather than last for life. Ask your insurer to confirm its current status and end date, including how missed payments, withdrawals, or loans could affect it.
Getting started
What Information Do I Need to Get Started?
Start with what you know about the policy. You do not need to upload documents to send the inquiry form. A broker follows up to discuss the coverage and help identify the records needed for a review.
If you have them, keep these handy:
- A recent policy statement: the insurer, policy type, death benefit, cash value, and current payment.
- A current in-force illustration: the insurer's projection of future premiums, values, and coverage.
- Loan information: the current balance and interest, if you have borrowed against the policy.
- Any premium or lapse notice: the amount requested and the deadline to keep coverage active.
Your broker can help request an updated illustration and clarify what the insurer needs to show. Later, buyers also review health information with the required authorization. See how the life settlement process works.
If you have a payment deadline: a sale review does not extend it. Contact your insurer about what is needed to keep the policy in force while you consider your options.
Before you decide
How Do I Decide Whether to Sell?
Compare what you would receive from a sale with surrendering the policy and the cost of keeping coverage you still need. Ask for the amounts in writing so you can make a fair comparison.
With a full sale, your beneficiaries no longer receive the policy's death benefit. The proceeds may also affect taxes and eligibility for needs-based benefits. We recommend consulting a tax professional and, if applicable, your benefits adviser before deciding. Citizens Life Group does not provide tax advice.
You choose whether to accept an offer. An inquiry does not commit you to selling.
Have Your Universal Life Policy Reviewed
Share your policy details. A broker will follow up to discuss the coverage, future premiums, and whether a sale is worth exploring.