Yes — you can sell an Allstate universal life policy through a life settlement; the policy is your property, and neither Allstate nor Everlake needs to approve the sale. In fact, universal life is the single most-settled policy type in the secondary market. Buyers know exactly why owners want out: UL premiums are flexible on paper, but the cost-of-insurance charges deducted inside the policy rise every year with age — and on older blocks of business those charges can climb sharply, turning a once-affordable policy into a monthly burden.
A quick note on names: Allstate sold Allstate Life Insurance Company to Blackstone-backed Everlake Life in 2021. Your legacy Allstate UL policy is now serviced by Everlake, even though your original contract says Allstate on the cover. The change is administrative only — your rights, including the right to sell, are untouched.
This guide covers why UL policies are prime settlement candidates, how to read your policy’s warning signs, and what a sale actually looks like. Pine Lake Life Solutions is not affiliated with Allstate or Everlake Life.
In This Article
- Why Universal Life Is the Most-Settled Policy Type
- Allstate Policies Are Now Serviced by Everlake
- Warning Signs Your UL Policy Is Headed for Trouble
- Your Options Ranked, From Keeping to Selling
- Documents You’ll Need
- The Sale Process and Timeline
- Who Qualifies — and What If You Don’t
- Frequently Asked Questions
Why Universal Life Is the Most-Settled Policy Type
Universal life dominates the life settlement market for a structural reason. Inside every UL policy, the insurer deducts a monthly cost-of-insurance (COI) charge from your cash value, and that charge rises each year as the insured ages. When a policy was funded on optimistic interest assumptions from decades past — common for policies sold in the 1980s through 2000s — the cash value erodes faster than projected. Owners in their 70s and 80s then face a choice: pay dramatically higher premiums to keep the policy alive, or watch it lapse worthless.
Settlement buyers exist precisely for this squeeze. To a buyer with capital and patience, a UL policy on a senior insured is an asset worth paying real money for — often several times its cash surrender value. The federal GAO study (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times surrender value, and the industry group LISA has cited averages near 7.8 times surrender value (verify current figures, as of 2026).
Allstate Policies Are Now Serviced by Everlake
In 2021, Allstate exited life insurance manufacturing by selling Allstate Life Insurance Company to Everlake Life Insurance Company, backed by Blackstone. If your UL policy came from an Allstate agent, Everlake now administers it — statements, premium notices, and service calls all run through Everlake. Plenty of owners have been confused by the unfamiliar name, and some stopped opening the mail entirely, which is dangerous with universal life: a UL policy quietly draining its own cash value can lapse without a dramatic warning.
For a settlement, the transfer changes only the paperwork address. Your in-force illustration request goes to Everlake, and the eventual change-of-ownership forms are filed with Everlake. If you’re not sure of your policy’s status, call the number on your latest statement and ask for the current cash value, the projected lapse date, and an in-force illustration — as of 2026, that one phone call tells you most of what you need to know.
Warning Signs Your UL Policy Is Headed for Trouble
Pull your latest annual statement and look for these signals:
- Cash value declining year over year even though you’re paying the planned premium — the COI charges are outrunning your funding.
- A projected lapse age in your lifetime. An in-force illustration will show the year the policy dies at current funding. If that year is realistic for you, the policy is on a collision course.
- Premium requirement jumps. A notice that the premium needed to maintain coverage has doubled or tripled is the classic older-block UL pattern.
- Loans compounding against the policy. Outstanding loans accelerate lapse and come off any settlement offer.
None of these mean you must sell — but all of them mean you should price your options now, while the policy is still in force. A lapsed policy is worth nothing to anyone. Start with the settlement vs. surrender comparison.
| UL Warning Sign | What It Means | What to Do |
|---|---|---|
| Cash value falling despite planned premiums | Cost-of-insurance charges outrunning funding | Request an in-force illustration from Everlake |
| Projected lapse date within your lifetime | Policy will die at current funding level | Price all exits now, while the policy is in force |
| Premium requirement doubled or tripled | Classic older-block UL repricing at advanced age | Compare settlement offer vs. surrender vs. reduced face |
| Large outstanding policy loan | Loan accelerates lapse; comes off any offer | Get the payoff figure before requesting offers |
Your Options Ranked, From Keeping to Selling
Before selling, compare the full menu:
- Refund the policy. Pay the higher premiums if heirs genuinely need the death benefit and you can afford it.
- Reduce the face amount. Everlake may allow you to lower the death benefit, cutting COI charges and stretching the cash value.
- Surrender. Take the cash surrender value — often modest on a stressed UL policy, but immediate.
- Life settlement. Sell the policy for a lump sum, typically well above surrender value for qualifying policies.
- Retained death benefit. Keep a slice of the death benefit with no further premiums — see how the policy options work.
A settlement usually wins when the insured is roughly 65 or older, the death benefit is $100,000 or more, and the premiums no longer make sense — a common fact pattern when funding senior care or completing a Medicaid spend-down. Surrender can genuinely be better for small policies with little market appeal, especially when a modest cash surrender value completes a spend-down anyway.
Documents You’ll Need
A UL settlement review runs on two documents:
- Your most recent annual statement — face amount, current cash value, surrender charges, loans, and the premiums actually paid.
- An in-force illustration from Everlake — projections of premiums, cash value, and death benefit at current charges. For UL this document is essential, because it reveals the true cost of keeping the policy.
To simply learn whether your policy is a candidate, send just the policy cover page — the first page with the insurer, policy number, face amount, and issue date. Pine Lake’s free review starts there. Expect a HIPAA authorization later so buyers can estimate life expectancy; sign only releases that are specific and revocable.
The Sale Process and Timeline
A typical UL settlement runs 60 to 120 days end to end:
- 1. Free review (days) — cover page screening.
- 2. Documentation (2–4 weeks) — in-force illustration from Everlake, medical records, life-expectancy estimates.
- 3. Offer — in writing, with gross and net-of-commission figures if a broker is involved.
- 4. Contracts and escrow — funds held by an independent escrow agent before any ownership change.
- 5. Transfer and funding — Everlake records the new owner; escrow releases your payment; most states allow a rescission window afterward.
One caution unique to stressed UL policies: keep paying enough premium to hold the policy in force during the process. A lapse mid-transaction kills the deal.
Who Qualifies — and What If You Don’t
The strongest UL candidates: insured age 65+ (younger with serious health conditions), death benefit of $100,000 or more, policy in force at least two years, and rising premiums that make continued funding uneconomic. Heavily loaned policies and small face amounts are harder to place.
If your policy doesn’t qualify, the review costs nothing and you still have the reduce-face and surrender paths. See what policies qualify, or call (305) 209-7183. Own a different Allstate policy type? Our guides to selling an Allstate whole life policy, an Allstate GUL policy, and an Allstate VUL policy cover those cases.
Frequently Asked Questions
Can I sell my Allstate universal life policy without the carrier’s consent?
Yes. The policy is your personal property and can be sold to a qualified buyer without permission from Allstate or Everlake. The servicing company simply records the ownership and beneficiary change once the sale closes.
Who services my old Allstate UL policy now?
Everlake Life. Allstate sold Allstate Life Insurance Company to Blackstone-backed Everlake in 2021, and legacy Allstate life policies are administered by Everlake. Your contract terms and your right to sell are unchanged.
Why are universal life policies the most commonly settled type?
Because rising cost-of-insurance charges on older UL blocks can push required premiums up sharply at advanced ages, squeezing owners out of policies they’ve funded for decades. Settlement buyers value the death benefit and are often willing to pay several times the cash surrender value.
My UL policy is about to lapse. Can I still sell it?
Possibly — but only while it remains in force. A lapsed policy has no settlement value. If lapse is close, keep the policy alive with minimum funding while you get a fast review; the cover page and latest statement are enough to start.
How much could a settlement pay compared to surrendering?
The federal GAO study found typical proceeds of about 10% to 35% of face value — roughly 4 to 8 times cash surrender value — and LISA has cited averages near 7.8 times surrender value (verify current figures as of 2026). Stressed UL policies often have low surrender values, which makes the multiple especially meaningful.
What documents do I need to get started?
Just the policy cover page for the initial free review. If the policy is a candidate, you’ll then need your latest annual statement and an in-force illustration from Everlake, plus a HIPAA authorization for the life-expectancy estimate.
How long does the process take?
Typically 60 to 120 days from review to funded payment. Keep paying enough premium to hold the policy in force the whole time, and make sure your funds sit in independent escrow until Everlake confirms the ownership transfer.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Sell My Allstate Whole Life Policy
- Sell My Allstate Guaranteed Universal Policy
- Sell My Allstate Variable Universal Policy
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.