Variable universal life is two products stapled together. It is a life insurance contract, regulated by state insurance departments, and it is a securities product, registered with the Securities and Exchange Commission and sold with a prospectus. The premium net of charges is allocated to subaccounts that function like mutual funds, and the account value rises and falls with those investments. There is no guaranteed credited rate underneath.
That dual nature explains both why these policies lapse and why reviewing one takes more paperwork than any other policy type. This page is education only and walks through what a variable universal life review actually requires.
In This Article
- Variable Universal Life Is a Security as Well as a Policy
- How a Down Market and Rising Charges Combine into a Lapse
- The Documents a Variable Universal Life Review Requires
- Who Services Your Ameritas Variable Policy Today
- Surrender, 1035 Exchange or Settlement
- What Pine Lake Does
- Frequently Asked Questions
Variable Universal Life Is a Security as Well as a Policy
The investment options inside a variable universal life policy are held in a separate account of the insurer, legally segregated from the company’s general account. Ameritas maintains registered separate accounts for its variable products, filed with the Securities and Exchange Commission under names such as Ameritas Variable Separate Account V and Ameritas Life Insurance Corp. Separate Account LLVA. Those registration statements and their prospectuses are public filings, which means the fee structure and subaccount lineup of your contract are documented in a place you can actually look.
The practical consequence is that any serious evaluation of a variable universal life policy reads three documents together: the current account statement, the in-force illustration, and the prospectus fee tables. Skipping the third is how owners end up surprised by mortality and expense charges, fund-level expenses and administrative fees that were disclosed all along.
How a Down Market and Rising Charges Combine into a Lapse
The common lapse path on a variable universal life policy is not a single dramatic event. It is a slow compounding of two independent pressures.
- Subaccount losses reduce the account value. A poor stretch of returns leaves less balance in the policy than the original illustration assumed.
- Cost of insurance charges rise with age. The monthly deduction is charged on the net amount at risk, which is roughly the death benefit minus the account value. As the account value falls, the net amount at risk grows, so the charge grows too.
Each pressure makes the other worse. Charges are met by liquidating units from the subaccounts, which sells assets to pay fees, which leaves less invested to recover. Owners often reach for the same remedy at the wrong moment, moving to a conservative subaccount after a decline, which locks in the loss while the charges keep climbing. None of this is visible in the premium notice, which may never change at all.
The Documents a Variable Universal Life Review Requires
Because a variable contract has no guaranteed floor, projections matter more here than on any other policy type, and a projection is only as good as its assumed rate of return. Always ask for the illustration at several rates, not one. The table below lists the documents to assemble before any decision is discussed.
| Document | Where to get it | What it reveals |
|---|---|---|
| Current account statement | Ameritas Accounts or mailed statement | Account value, subaccount allocation, recent charges |
| In-force illustration at several assumed rates | Ameritas service or your representative | How long the policy survives at optimistic and pessimistic returns |
| Product prospectus and fee tables | SEC filings for the Ameritas separate account | Mortality and expense charges, fund expenses, surrender charges |
| Policy schedule and rider pages | Your file or Ameritas Accounts | Face amount, death benefit option, riders, issuing company |
| Loan and withdrawal history | Request from Ameritas service | Outstanding balances that reduce any net proceeds |
Who Services Your Ameritas Variable Policy Today
Ameritas Life Insurance Corp. is domiciled in Lincoln, Nebraska, with Ameritas Life Insurance Corp. of New York in White Plains, New York. The group’s current shape came from a long sequence of combinations: conversion to a mutual insurance holding company structure under Nebraska law effective January 1, 1998; the 1999 merger with Acacia Mutual Holding Corporation; the January 1, 2006 merger with Union Central Mutual Holding Company to form UNIFI Mutual Holding Company; and UNIFI’s renaming to Ameritas Mutual Holding Company effective May 2, 2012. Effective July 1, 2014, Acacia Life Insurance Company and The Union Central Life Insurance Company merged into Ameritas Life Insurance Corp., which survived and assumed all their outstanding liabilities as approved by Nebraska.
Ameritas continues to write new individual life insurance in 2026, including variable universal life, and is not a runoff carrier. Its published financial strength page lists an A.M. Best rating of A (Excellent) dated June 25, 2026 and a Standard & Poor’s rating of A+ (Strong) dated April 8, 2026, and the company reported $32.4 billion in assets and $2.2 billion in capital and surplus as of December 31, 2025.
Surrender, 1035 Exchange or Settlement
Three exits are commonly weighed on a struggling variable universal life policy, and they are not interchangeable.
- Surrender. You take the account value less surrender charges and any loan. Coverage ends. Any gain above cost basis is generally taxable, which is a question for your own tax adviser.
- Section 1035 exchange. The account value moves into a different life insurance or annuity contract without triggering current tax on the gain. This preserves value but does not produce cash, and it is only worth doing if the destination contract is genuinely better for you.
- Life settlement. A licensed buyer purchases the contract for a lump sum, becomes owner and beneficiary and assumes the premiums. It only makes sense if the net proceeds clearly exceed what a surrender would produce.
The transaction step for a settlement is a recorded change of ownership. Ameritas requires a signed Policyowner’s Change and Service Request form, downloaded from Ameritas Accounts under the Forms tab and uploaded once signed; ownership changes cannot be made online the way a contact detail can. Ameritas lists a service line of 800-745-1112 outside New York and 877-280-6110 for New York, Monday through Friday, 7 a.m. to 5 p.m. Central.
What Pine Lake Does
Pine Lake Life Solutions offers a free, no-obligation policy review at (305) 209-7183 that reads your statement, illustration and fee disclosures and explains what the policy is actually doing. Pine Lake does not purchase policies, does not promise that any policy will attract an offer, and does not provide legal, tax or investment advice. Decisions about subaccount allocation and about the tax consequences of any exit belong with your own licensed advisers.
Pine Lake Life Solutions is an independent education and referral resource. Pine Lake is not affiliated with, endorsed by, appointed by or connected to Ameritas Life Insurance Corp. or any Ameritas company, and Pine Lake does not purchase policies. Nothing here is legal, tax or investment advice, and no eligibility or dollar value is promised. The only thing offered is a free, no-obligation policy review at (305) 209-7183.
Frequently Asked Questions
Why did my variable universal life policy lose value even though I kept paying?
Two forces work together. Subaccount losses reduce the account value, and the monthly cost of insurance charge is calculated on the net amount at risk, which grows as the account value shrinks. Charges are paid by selling subaccount units, so poor returns and rising deductions compound each other.
What extra documents does a variable policy review need?
Beyond the statement and the in-force illustration, a variable universal life review should include the product prospectus fee tables, because mortality and expense charges, fund-level expenses and surrender charges are disclosed there rather than on the statement. Ameritas files registered separate accounts with the SEC for its variable products.
Is a 1035 exchange the same as a life settlement?
No. A Section 1035 exchange moves the existing account value into another insurance or annuity contract without triggering current tax on the gain, but it produces no cash. A life settlement is a sale of the policy to a licensed buyer for a lump sum. They answer different problems and have different tax treatment.
Does Ameritas still sell variable universal life?
Yes. As of 2026 Ameritas continues to write new individual life insurance including variable universal life, so it is not a runoff carrier. Its own financial strength page lists an A.M. Best rating of A (Excellent) dated June 25, 2026.
Can Pine Lake advise me on my subaccount allocation?
No. Pine Lake provides education, not investment advice, and does not purchase policies. Subaccount allocation and tax questions belong with your own licensed investment and tax advisers. The free policy review explains the insurance mechanics and the alternatives available.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
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- Sell My Ameritas Whole Life Policy
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- How To Read In Force Illustration
- Life Settlement Process Step By Step
- Carrier Anti Assignment Provisions
- Sell My Pacific Life 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.