Yes — an Ameritas universal life policy can be sold in a life settlement, because the contract is your property and the buyer purchases it from you; the carrier’s permission is not needed and its role is limited to recording the new owner after closing. Universal life is the type most frequently sold in the secondary market, largely because it is the type most likely to become unaffordable long before the insured’s life expectancy.
The mechanism is worth understanding before you make any decision. A universal life policy holds an account value. Each month the insurer deducts a cost-of-insurance charge plus administrative fees, and credits interest on what remains. As long as the account value covers those deductions, coverage continues. The charge is based on the insured’s attained age and the amount at risk — so it rises every single year, and at advanced ages it rises steeply.
This guide explains how to tell whether your policy is heading toward lapse, what the grace period actually gives you, which documents matter, and how a settlement compares with the alternatives. Pine Lake Life Solutions is not affiliated with Ameritas. Education only — not legal, tax, or investment advice.
In This Article
- Ameritas: A Mutual Insurer Built From Mergers
- Signs Your Universal Life Policy Is Heading Toward Lapse
- The Grace Period and Lapse Notices — Know Your Protections
- How a Buyer Values a Universal Life Contract
- The In-Force Illustration and What to Ask For
- Closing the Sale: Assignment, Escrow, Rescission
- Who Qualifies, and Where to Start
- Frequently Asked Questions
Ameritas: A Mutual Insurer Built From Mergers
Ameritas Life Insurance Corp. is based in Lincoln, Nebraska, and sits within a mutual holding company structure — ultimately owned by its policyholders rather than by outside shareholders. That has two practical consequences for policyholders. There is no demutualization stock to search for, because Ameritas never converted to a publicly traded stock company. And there is no private-equity parent or offshore acquirer to trace, which sets it apart from a number of carriers whose in-force blocks have changed hands repeatedly.
The organization was assembled from mutual companies rather than sold off in pieces: Ameritas, Acacia Life of Washington, D.C., and Union Central Life of Cincinnati were brought together over a series of combinations, and a separate Ameritas company handles policies issued in New York. Ameritas remains active in individual life insurance and is also a large group dental and vision carrier — so many households know the name from a benefits card rather than a policy.
Confirm which entity issued your policy from the name on your annual statement, and verify Ameritas’s current A.M. Best financial strength rating and policyholder service number on the carrier’s own site as of 2026.
Signs Your Universal Life Policy Is Heading Toward Lapse
Universal life rarely fails suddenly. It gives warnings, and they are easy to miss:
- The account value on the annual statement is lower than the prior year even though you paid the same premium.
- Annual charges deducted have grown noticeably over the past several statements.
- The insurer sends a notice that a larger premium is now required to keep the policy in force to a given age.
- The credited interest rate has drifted down toward the contract’s guaranteed minimum.
- A policy loan is outstanding and the interest on it is compounding against the account value.
Any two of those together mean it is time to request an in-force illustration. A policy that lapses pays nothing to anyone — and lapse is the single outcome the secondary market exists to prevent.
The Grace Period and Lapse Notices — Know Your Protections
If the account value cannot cover the monthly deduction, the policy enters a grace period, commonly around 31 days for universal life, during which you can pay the required amount and keep coverage in force. Coverage continues during the grace period, so a claim during that time is generally still payable, subject to the contract’s terms.
Two protections are worth acting on now rather than later. First, many states require the insurer to send a lapse or termination notice before coverage ends. Second, many contracts and state rules let you designate a secondary addressee — a third party, often an adult child, who receives copies of lapse notices. That designation costs nothing and has saved a great many policies from lapsing because mail went unopened. Ask Ameritas how to add one and confirm the current requirement as of 2026.
If a policy has already lapsed, ask about reinstatement — usually available for a limited period and typically requiring back premiums plus evidence of insurability. Once reinstatement is off the table, there is nothing left to sell.
| Warning Sign on Your Statement | What It Usually Means | What to Do Next |
|---|---|---|
| Account value down year over year | Charges now exceed premiums plus credited interest | Request an in-force illustration |
| Notice of a required premium increase | The policy cannot sustain itself at current funding | Compare paying, reducing coverage, or selling |
| Credited rate at the guaranteed minimum | No cushion left from interest crediting | Run the guaranteed-assumption illustration |
| Growing policy loan balance | Loan interest is eroding value and death benefit | Get the exact payoff figure before seeking offers |
| Grace period notice received | Coverage will end unless payment is made | Act immediately; a lapsed policy cannot be sold |
How a Buyer Values a Universal Life Contract
An offer is a present-value calculation with three inputs: the net death benefit after any outstanding loan, an estimate of the insured’s life expectancy based on medical records, and the premiums the buyer expects to pay until a claim.
Universal life’s flexibility helps here. A buyer is not obligated to keep funding at your level; it can pay the minimum needed to keep the policy in force, which is often much less than the amount required to build value. That efficiency is a large part of why this policy type dominates the secondary market.
The federal GAO study (GAO-10-775) found sellers across the market typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value. That is a market range, not a quote on your contract. Compare it against your actual numbers using settlement versus surrender.
The In-Force Illustration and What to Ask For
Call Ameritas policyholder service and request an in-force illustration. Be specific about what you want:
- A version at current charges and crediting rate, showing the minimum premium required to keep the policy in force to age 90, 95, and 100.
- A version at guaranteed maximum charges and the minimum crediting rate, with the same schedule.
- A scenario showing how long the policy lasts if you stop paying premiums entirely.
That third scenario is the one most owners never think to request, and it is often decisive. Pair the illustrations with your most recent annual statement. For a preliminary read on whether the policy is a candidate, though, the policy cover page alone is enough — insurer, policy number, face amount, and issue date.
Closing the Sale: Assignment, Escrow, Rescission
The transaction ends with an absolute assignment recorded by the insurer — the buyer becomes owner and beneficiary, your premium obligation ends, and you receive a lump sum. Ask the carrier for its current change-of-ownership and change-of-beneficiary forms, whether notarization or a signature guarantee is required, and how long recording takes.
Three protections should be non-negotiable. Get every offer in writing, including gross and net-of-commission figures if a broker is involved. Insist that funds sit with an independent escrow agent and release only after the insurer confirms the recorded transfer. And ask what rescission window applies where you live — most states give sellers a period after funding to unwind the sale by returning the proceeds.
See how the policy options work for variations, including arrangements that end your premiums while retaining a portion of the death benefit for your family.
Who Qualifies, and Where to Start
Typical candidates are insureds around 65 or older, or younger with a meaningful health change since the policy was issued; a death benefit of $100,000 or more; a policy in force past the two-year contestable period; and premiums that have become difficult to sustain. The most common disqualifiers are small face amounts and large outstanding loans that leave little net death benefit.
Plan on roughly 60 to 120 days from application to funded payment. If you hold other Ameritas coverage, the analysis is different for each type — see selling an Ameritas whole life policy, an Ameritas GUL policy, or an Ameritas term policy. Start with what policies qualify, then send the policy cover page for a free review or call (305) 209-7183.
Frequently Asked Questions
Do I need Ameritas’s permission to sell my universal life policy?
No. You own the contract and the buyer purchases it from you. Ameritas records the change of ownership and beneficiary after the sale closes, which is an administrative filing, not an approval.
Why does my premium keep going up when the policy was supposed to be flexible?
The cost-of-insurance charge deducted each month is based on the insured’s attained age and rises every year. When credited interest no longer offsets those rising charges, the insurer notifies you that a larger premium is needed to keep coverage in force. Flexible premium means you choose the amount, not that the cost stays level.
What is a secondary addressee and why does it matter?
It is a third party — often an adult child — designated to receive copies of lapse and termination notices from the insurer. It costs nothing to add and prevents a policy from lapsing because mail was missed. Ask the carrier how to designate one on your policy.
Can I still sell a policy that is in its grace period?
Sometimes, if the policy is still in force and the grace period has not expired, but time is short. A settlement typically takes 60 to 120 days, so the grace period alone is not enough runway. Contact the carrier about keeping the policy in force while options are evaluated.
Is Ameritas owned by a private equity firm or a foreign insurer?
No. Ameritas operates within a mutual holding company structure, ultimately owned by its policyholders, and was assembled through combinations with other mutual insurers including Acacia Life and Union Central Life. Verify the current structure and financial strength rating on the carrier’s own site.
What in-force illustration should I request?
Ask for one at current charges and crediting rates, one at guaranteed maximum charges and minimum crediting, and a scenario showing how long the policy survives if you stop paying premiums entirely. Each should show the minimum premium needed to reach ages 90, 95, and 100.
How much could a universal life policy sell for?
The GAO market study (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value. Your figure depends on age, health, net death benefit after loans, and the premiums a buyer must pay going forward.
What should I send first?
The policy cover page — the first page showing the insurer, policy number, face amount, and issue date. That is enough for a free, no-obligation review. Call (305) 209-7183 if you would rather talk through the situation before sending anything.
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Related Reading
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Sell My Ameritas Whole Life Policy
- Sell My Ameritas Guaranteed Universal Policy
- Sell My Ameritas Term 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.