Yes. An American National variable universal life policy can be sold in a life settlement, and no permission from the carrier is needed because you are transferring a contract you own. The legal foundation is the same for every insurer: the Supreme Court’s 1911 ruling in Grigsby v. Russell.
What makes VUL different is that its cash value lives in separate-account subaccounts tied to market performance. The surrender value on today’s statement may be materially different next quarter, which unsettles owners who expect an insurance policy to hold a stable number.
This page explains the internal charges quietly working against an underfunded VUL, what buyers actually price, and how to document the policy. Pine Lake Life Solutions is not affiliated with American National.
In This Article
- American National’s Distribution and Today’s Owner
- Your Cash Value Moves With the Market
- M&E Charges Plus a Rising Cost of Insurance
- The Illustration That Tells the Truth
- What a Buyer Is Actually Paying For
- Documents and What Happens When
- Alternatives, Including the Ones That Beat Selling
- Frequently Asked Questions
American National’s Distribution and Today’s Owner
American National sold through a multiple-line agent force offering life, annuity, health, and property-casualty products from one office, which is why many VUL owners first met their agent over a farm or auto policy. The company, based in Galveston, Texas, was acquired by Brookfield Reinsurance in 2022.
Verify the 2026 servicing entity name and current A.M. Best rating on the carrier’s own site. For anything policy-specific, including subaccount menus and current charges, use the policyholder service number printed on your most recent statement.
Your Cash Value Moves With the Market
VUL premium, net of charges, is invested in subaccounts that behave like mutual funds. Gains raise the account value and losses lower it, without any guaranteed floor in most designs. A three-year stretch of weak returns can leave an account value far below what the original sales illustration projected.
Two consequences follow. Do not treat an old statement as a current benchmark for what surrendering would pay. And recognize that a settlement offer is not calculated as a share of your subaccount balance, so market swings affect your surrender alternative more than they affect a buyer’s bid.
M&E Charges Plus a Rising Cost of Insurance
Mortality and expense risk charges are deducted regularly to cover the insurer’s risk and administration. On top of that, the monthly cost of insurance buys the death protection and increases each year as the insured ages. Neither charge is optional and neither shows up as a bill; both come straight out of account value.
In an underfunded VUL, that combination compounds. As the account shrinks, the same charges represent a larger share of what is left, and the policy accelerates toward zero. Owners in their late 70s often discover the policy needs a premium several times larger than the one they have paid for years.
| Internal Cost | How It Is Charged | Trend Over Time |
|---|---|---|
| Cost of insurance | Monthly deduction from account value | Rises each year with the insured’s age |
| Mortality and expense risk charge | Ongoing charge against separate account | Generally level as a rate, larger as a share of a shrinking account |
| Fund management fees | Inside each subaccount | Varies by fund selection |
| Policy and administrative fees | Flat or per-thousand monthly charge | Usually level |
The Illustration That Tells the Truth
Ask the carrier for an in-force illustration at a zero percent assumed return and current charges, and a second at a modest assumption such as 4% or 6%. The zero-return page shows the year the policy fails if the subaccounts contribute nothing.
If that lapse year falls within the insured’s realistic life expectancy, the policy as funded is on track to pay nobody. That is the fact that reframes the decision, and it is the fact a buyer will focus on when pricing the contract.
What a Buyer Is Actually Paying For
Buyers value two things: the death benefit that will eventually be paid and the premium stream required to get there. The subaccount balance matters only to the extent it offsets future premium the buyer would otherwise have to pay. Life expectancy estimates from independent medical underwriters do the heavy lifting.
Across the market, the federal GAO study published in 2010 (GAO-10-775) reported sellers typically receiving roughly 10% to 35% of face value, commonly several times what surrendering would have paid. Individual results depend on the specifics and cannot be predicted before underwriting.
Documents and What Happens When
Send the cover page, the most recent statement showing account value and allocations, a current premium notice, and the in-force illustrations described above. If a loan is outstanding, get a payoff figure effective on a stated date, because it reduces net proceeds.
After you sign HIPAA authorizations, records are ordered, life expectancy reports are issued, and offers are solicited. Total elapsed time is usually 60 to 120 days. Following funding, most states give the seller a rescission period during which the sale can be reversed by returning the money.
Alternatives, Including the Ones That Beat Selling
You can surrender for current cash value, reduce the face amount to lower the cost of insurance, reallocate subaccounts to something more conservative, or execute a 1035 exchange into a guaranteed product. Each of those keeps the policy or its value inside the insurance system.
Selling makes sense when the coverage is no longer needed by anyone and the cash matters more than the benefit. It is usually the wrong choice when a spouse or dependent still relies on the death benefit. Take the numbers to your own CPA and attorney before you decide.
Pine Lake Life Solutions reviews policies with a death benefit of $100,000 or more and typically pays more than cash surrender value. Send the policy cover page for a free policy review, or call (305) 209-7183. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Do I need American National’s permission to sell my VUL?
No. The buyer purchases the contract from you and the carrier records the ownership change afterward. The owner’s right to transfer a policy was confirmed in Grigsby v. Russell in 1911.
My subaccounts lost value. Does that lower my offer?
Not directly. Offers are built on the death benefit, life expectancy, and the premium needed to keep the policy in force. A lower account value mostly reduces what surrendering would pay and can slightly raise the buyer’s future premium cost.
What is eating my account value?
Mainly the monthly cost of insurance, which rises with age, plus mortality and expense risk charges, fund fees, and administrative charges. In an underfunded VUL those deductions can outrun investment returns.
Which illustration should I request?
Ask for an in-force illustration at zero percent assumed return and current charges, and a second at a modest assumed return. The zero-return version shows when the policy fails if the markets do nothing for you.
Who owns American National now?
Brookfield Reinsurance completed its acquisition of American National in 2022. Verify the current servicing entity name and A.M. Best rating with the carrier directly.
Can I sell a VUL with a loan against it?
Yes. The loan balance and accrued interest are paid off at closing out of the purchase price, so your net proceeds are reduced by that amount. Request a written payoff quote as of a specific date.
What do I send to start a free review?
The policy cover page is enough to begin. A recent statement and premium notice speed things up, and an in-force illustration can be requested from the carrier on your behalf.
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Related Reading
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- What Is A Policy Loan
- Education Center
- Sell My American National Guaranteed Universal Policy
- Sell My American National Universal Life 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.