Yes — an Assurity indexed universal life policy can be sold in a life settlement when both the insured and the policy meet market criteria, and the carrier’s permission is not needed to transfer ownership. A life insurance contract is an asset, and you may sell an asset you own. Assurity’s part at closing is clerical: recording the new owner and beneficiary. The real screen is economic — age, health, face amount, loan balance and how much it costs to keep the contract alive.
Assurity Life Insurance Company is a mutual insurer headquartered in Lincoln, Nebraska, with roots dating to 1890, and it is well known for disability income insurance, critical illness coverage and simplified-issue life products distributed through independent brokers. Assurity has also been recognized as a certified B Corporation, an unusual designation among life carriers. As of 2026, confirm directly with Assurity which product you hold and whether an indexed universal life series is open for new sales or exists only as an in-force block — the answer determines which service unit handles your document requests.
Below we cover index crediting mechanics, the risk of an optimistic original illustration, and how a settlement buyer prices a universal life contract. Pine Lake Life Solutions is not affiliated with Assurity Life, and this page is educational, not legal, tax or investment advice.
In This Article
- Simplified-Issue Policies and Face Amount Reality
- What Indexing Does and Does Not Do
- Rising Charges and the Carrier’s Levers
- Request the In-Force Illustration — All Four Scenarios
- Turning the Contract Into a Price
- Honest Alternatives, Including Doing Nothing
- Qualifying, Process and How to Begin
- Frequently Asked Questions
Simplified-Issue Policies and Face Amount Reality
Much of Assurity’s individual life business has been simplified-issue — coverage sold with a health questionnaire rather than a full paramedical exam, usually at modest face amounts. That is worth stating plainly, because the settlement market has a size threshold. Buyers generally need a death benefit of $100,000 or more for the fixed costs of underwriting, legal review and closing to make sense.
If your Assurity contract is a $50,000 policy, a settlement is unlikely regardless of how well it is performing. That is not a rejection of you or the policy; it is arithmetic on the buyer’s side. Where families sometimes find a path is when several policies on the same insured can be evaluated together, or when the contract is larger than they remember. Check the face amount on the cover page before assuming either way, and see minimum policy size.
What Indexing Does and Does Not Do
An indexed universal life policy links interest credits to an index — most commonly the S&P 500 measured on price return, excluding dividends — over a defined segment, subject to a participation rate and a cap, with a floor typically set at 0%. Your money is never in the market; the insurer purchases options to fund the credit.
Two consequences follow. In a strong year you receive the cap, not the index. In a bad year you receive nothing, but you still pay that year’s cost of insurance, policy fee and per-thousand charges, so the account value declines. The floor limits investment loss; it does not make a flat year free. Understanding that single point resolves most confusion about why an in-force IUL is behind its original projection.
Rising Charges and the Carrier’s Levers
The largest deduction from an indexed universal life policy is the cost of insurance, calculated on the net amount at risk — the death benefit minus the account value — using a rate that increases with attained age. As the account value erodes, the amount at risk widens, and the dollar charge accelerates even at an unchanged rate.
Separately, most in-force contracts permit the carrier to raise the declared COI scale toward the guaranteed maximum and to reduce declared caps and participation rates toward the guaranteed minimums, applied by policy class rather than to individuals. Ask Assurity in writing for the current and guaranteed figures on both, and compare the current and guaranteed columns on your illustration. See how cost of insurance works.
| Face Amount | Likely Settlement Market Interest | Better Path if No Offer |
|---|---|---|
| Under $50,000 | Very unlikely | Keep, reduce benefit, or surrender |
| $50,000 – $99,000 | Rare; case by case | Reduced paid-up or accelerated benefit rider |
| $100,000 – $249,000 | Possible with impaired health | Reduce death benefit to stabilize |
| $250,000 – $999,000 | Core of the market | Compare multiple offers |
| $1,000,000+ | Strong interest if insured qualifies | Negotiate; consider retained death benefit |
Request the In-Force Illustration — All Four Scenarios
Ask for the illustration at current charges and crediting, at guaranteed maximum charges with guaranteed minimum crediting, at the premium solve that carries the policy to maturity, and at zero further premium. It is free and it is the only document that shows the policy’s projected lapse year under each set of assumptions.
That projection is also the cost input a settlement buyer discounts to build an offer, so the transaction cannot proceed without it. If you do nothing else after reading this page, request it. More detail: why the in-force illustration matters.
Turning the Contract Into a Price
Buyers subtract their way to a bid. Net death benefit, less loans, less the present value of premiums required to maturity, discounted at a required return, weighted by an independent life-expectancy estimate, less closing costs. Because the expected holding period drives everything, medical documentation is the highest-leverage part of the file.
Federal research on the market — GAO-10-775 — found typical proceeds of about 10% to 35% of face value, commonly four to eight times cash surrender value. Two identical face amounts can price far apart depending on health and how much funding the contract demands. Read what affects an offer before you form expectations.
Honest Alternatives, Including Doing Nothing
If the death benefit still protects someone who needs it and the corrected premium is manageable, keeping the policy is usually best; the benefit paid to a beneficiary is generally income-tax-free. If you need relief but want coverage, ask whether reducing the specified amount stabilizes the contract. If your policy offers reduced paid-up, that ends premiums with a smaller benefit intact.
Surrender when the cash surrender value is close to any realistic bid. Never let the policy simply lapse without asking these questions first — it is the one path that returns nothing. See alternatives to stopping payment and when a settlement is a bad idea.
Qualifying, Process and How to Begin
The realistic screen: insured aged 65 or older, or younger with substantial health impairments; death benefit of $100,000 or more; policy past the contestability period; and a premium load that leaves room in the economics. If you also own an Assurity whole life or universal life contract, each should be reviewed on its own facts — see the Assurity universal life guide.
Expect the process to run 60 to 120 days, with an independent escrow agent holding funds until the ownership change is confirmed and a state-specific rescission window afterward. Verify the rescission period for your state as of 2026.
To find out whether your policy is a candidate, send only the policy cover page for a free, no-obligation review, or call (305) 209-7183.
Frequently Asked Questions
Does Assurity have to agree to the sale?
No. The policy is your property and may be transferred to a qualified buyer. Assurity records the change of ownership and beneficiary after the transaction closes; it does not approve or deny it.
Does Assurity currently offer indexed universal life?
Assurity, a Lincoln, Nebraska mutual insurer with roots to 1890, is best known for disability income, critical illness and simplified-issue life products. Confirm with the company as of 2026 whether an indexed universal life series is open for new sales or whether your contract belongs to an in-force block.
My Assurity policy is only $50,000. Can I sell it?
Almost certainly not through a life settlement. Buyers generally require death benefits of $100,000 or more because underwriting and closing costs do not shrink with the policy. Reducing the death benefit, electing reduced paid-up if available, or surrendering are the realistic options at that size.
Why is my account value falling in years the index rose?
Index credits are capped and measured on price return excluding dividends, and gains that occur and reverse within a segment may not be captured. Meanwhile cost of insurance, the policy fee and per-thousand charges are deducted every month. If the credit is smaller than the charges, the account value falls.
What health information is required?
You sign a HIPAA authorization so an independent medical underwriter can order records and produce a life expectancy estimate. There is normally no new medical exam. Make sure any authorization you sign is specific in scope and revocable.
How much could a qualifying policy bring?
The federal GAO study reported typical proceeds of roughly 10% to 35% of face value, commonly four to eight times cash surrender value. That is a market-wide range. Your figure depends on life expectancy, the premium needed to sustain the contract, and any loan balance.
What is the first step and does it cost anything?
Send the policy cover page — insurer, policy number, face amount, issue date — for a free review. There is no cost and no obligation, and the answer is usually available within a day or two. You can also call (305) 209-7183.
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
- Minimum Policy Size For A Life Settlement
- What Is Cost Of Insurance
- In Force Illustration Why It Matters
- What Affects A Life Settlement Offer
- Stop Paying Premiums Alternatives
- When A Life Settlement Is A Bad Idea
- Sell My Assurity Universal Life Policy
- What Is Indexed Universal Life
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.