Yes – an Assurity universal life policy can be sold in a life settlement, and universal life is the most frequently settled policy type in the secondary market. The buyer purchases your contract, becomes owner and beneficiary, and takes over the premiums. Assurity’s consent is not part of the transaction; the carrier simply records the change of ownership afterward.
The qualifying test is about you and the policy. Buyers generally want an insured in their senior years, a death benefit of $100,000 or more, and a premium requirement that leaves room for a return. That second condition deserves emphasis for Assurity owners: the company, a Lincoln, Nebraska mutual organization, has long focused on simplified-issue and accelerated-underwriting life products often written at modest face amounts. A meaningful share of Assurity contracts in force are smaller than what the secondary market buys.
This guide covers why cost-of-insurance charges push universal life owners toward this decision, what your in-force illustration will reveal, how buyers price these contracts, and when selling is the wrong call. Pine Lake Life Solutions is not affiliated with Assurity Life Insurance Company.
In This Article
- Assurity in 2026: Mutual, Nebraska-Based, and Still Writing Business
- Cost of Insurance: Why Universal Life Owners End Up Here
- Get the In-Force Illustration – and Ask for Two Versions
- How Buyers Price an Assurity Universal Life Policy
- The Face Amount Threshold, Stated Plainly
- Documents to Collect
- Closing, Timing, and Taxes at a High Level
- When Not to Sell
- Frequently Asked Questions
Assurity in 2026: Mutual, Nebraska-Based, and Still Writing Business
Assurity Life Insurance Company operates as a mutual organization out of Lincoln, Nebraska. It reports over $22 billion of life insurance in force and roughly $2.6 billion in assets, and it is still actively selling individual life products rather than sitting in runoff. It is also a Certified B Corporation – a third-party standard for social and environmental performance that almost no life insurers carry.
AM Best rates Assurity A- (Excellent), stable since 2019; verify the current rating at ambest.com before relying on it. Because Assurity did not spin off or sell its retail life block, most owners are dealing with the same company named on the policy. Still, take the service number from your latest annual statement and confirm in 2026 which service center handles in-force illustrations and change-of-ownership requests for your contract.
Cost of Insurance: Why Universal Life Owners End Up Here
Inside a universal life policy, the carrier deducts a monthly cost-of-insurance charge from the account value, calculated on the amount at risk and the insured’s attained age. That charge is small at 55 and large at 82. Credited interest works against it. When the charges win, the account value drains toward zero, and at zero the policy lapses regardless of how faithfully the original premium was paid.
This is why universal life dominates the secondary market. The moment the policy becomes expensive to keep is typically the same moment the insured is old enough for the policy to be worth something to a buyer. Owners usually learn about it through a carrier notice proposing a much larger premium, or an illustration showing a lapse date only a few years out.
Get the In-Force Illustration – and Ask for Two Versions
An in-force illustration is a carrier-produced projection of how your specific policy performs going forward. Carriers provide it free; expect about two weeks. Request two runs. First: your current premium at current charges and crediting, showing the projected lapse year. Second: a solve for the annual premium required to keep the policy in force to age 100 at guaranteed charges.
The second figure is the buyer’s carrying cost, and it is the number that determines the offer more than the face amount does. It is also the number that tells you what staying the course really costs. If the two runs are far apart, that spread is a measure of how much of your policy’s future depends on assumptions that can change.
How Buyers Price an Assurity Universal Life Policy
Expected death benefit, minus expected premiums, discounted to today. Three inputs dominate: face amount, life expectancy, and the required premium. The carrier’s name changes nothing in this formula.
A clearly hypothetical case shows the sensitivity. Take a $250,000 universal life policy, insured age 82, requiring $7,000 a year to stay in force, with a $4,500 net surrender value. Older insured, low carrying cost, and a surrender alternative worth almost nothing – a reasonable candidate. Change only one input, making the insured 68 and in good health, and the picture reverses: the buyer would face many more years of premiums, and any offer would shrink or disappear. Market offers commonly fall in a range of about 10% to 35% of the death benefit, and where a case lands within that band is driven almost entirely by those inputs.
| Case detail (hypothetical) | Effect on offer | What to verify |
|---|---|---|
| Insured age 82 vs. age 68 | Older insured supports a higher offer | Date of birth on the policy |
| Premium $7,000/yr vs. $24,000/yr | Lower carrying cost supports a higher offer | Premium solve at guaranteed charges |
| Face $250,000 vs. $60,000 | Below about $100,000 usually not marketable | Current death benefit on the statement |
| Death benefit Option A vs. Option B | Option B can exceed the stated face amount | Annual statement |
| Loan of $18,000 outstanding | Reduces net proceeds dollar for dollar | Written payoff quote from the carrier |
| Documented health decline since issue | Shortens life expectancy, raises the offer | Medical records with your authorization |
The Face Amount Threshold, Stated Plainly
Buying a policy requires medical record retrieval, a life expectancy assessment, legal review, and escrow. Those costs barely move with the size of the policy, which is why a $100,000 death benefit is the usual practical minimum and why smaller policies get declined even when the insured qualifies on age and health.
If your Assurity universal life policy has a face amount well below that, the useful conversation is a different one. Compare the net surrender value against reducing the face amount to a level the account value can sustain, and against simply keeping the coverage. A review that tells you a settlement is not realistic is doing its job. There is no fee for finding out.
Documents to Collect
Six items: the policy cover page; the most recent annual statement showing account value, surrender value, death benefit option, and any loan; the in-force illustration at current assumptions; the premium solve at guaranteed assumptions; a written loan payoff quote if you have borrowed; and health information for the insured.
Check your death benefit option on the statement. Option A pays the level face amount; Option B pays face plus account value, which means the amount a buyer prices may be higher than the number on the cover page. Also note whether any premiums have been paid from the account value automatically – that pattern is often the first sign the policy is under stress.
Closing, Timing, and Taxes at a High Level
Plan on 60 to 120 days. After a free policy review, medical records are ordered with your authorization, a life expectancy assessment is prepared, offers are made, closing documents are signed, funds go into escrow, and the carrier records the ownership and beneficiary change. Escrow releases when the transfer is confirmed. Most states then provide a rescission period during which you may unwind the sale.
Broadly, proceeds up to your cost basis are typically received tax-free, amounts between basis and the cash surrender value are typically ordinary income, and anything above that is generally capital gain. A universal life policy with a small surrender value and a solid offer can therefore produce a real gain component. That is a general description, not advice – have your own tax professional review the closing figures.
When Not to Sell
If the death benefit is still needed, keep it. Ask the carrier first whether the face amount can be reduced to a level the existing account value can sustain; a smaller policy that survives is worth more to a family than a larger one that lapses at 85.
If the insured is terminally or chronically ill, look for an accelerated death benefit or chronic illness rider in the contract – that route pays through the carrier, usually in weeks rather than months, with no third-party underwriting. If a Medicaid spend-down is the driver, talk to an elder law attorney first, because cash proceeds count differently than an in-force policy and transfers during the look-back period can create a penalty. And if the policy is nearly free to carry and the surrender value is small, the honest answer may be that there is not enough at stake to justify the process at all.
Frequently Asked Questions
Does Assurity need to approve the sale?
No. The carrier records the new owner and beneficiary after closing but has no role in approving or blocking the transaction. Transferring a policy you own is a property right.
Why does my universal life policy suddenly need more premium?
Because cost-of-insurance charges rise with the insured’s attained age. When credited interest no longer covers those rising monthly deductions, the account value drains and the carrier asks for additional premium to prevent a lapse.
How do I get an in-force illustration?
Call the policyholder service number on your latest Assurity statement and request it in writing. Carriers provide it at no charge and typically take about two weeks. Ask for both a current-assumptions run and a premium solve at guaranteed charges.
My policy is only $75,000. Is that enough?
Usually not. The fixed cost of underwriting a case is nearly the same at any size, so buyers generally look for $100,000 or more. Below that, the practical comparison is reducing the face amount, surrendering, or keeping the policy.
Is Assurity financially sound?
AM Best rates Assurity A- (Excellent), stable since 2019, and the company reports more than $22 billion of life insurance in force and roughly $2.6 billion in assets. Verify current figures with the company and at ambest.com.
Should I stop paying premiums while I explore a sale?
No. Keep the policy in force until the ownership transfer is confirmed. A lapsed universal life policy cannot be sold, and reinstatement may require evidence of insurability the insured cannot provide.
Can my family keep part of the death benefit?
Sometimes. A retained death benefit arrangement lets the buyer take part of the face amount while a portion remains with your beneficiary and the buyer covers the premiums. Availability varies by case, so ask early.
How do I start?
Send the policy cover page for a free policy review, or call (305) 209-7183. There is no obligation and you should never pay an upfront fee simply to learn what a policy is worth.
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Related Reading
- What Policies Qualify For Life Settlement
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- What Is A Policy Loan
- Sell My Assurity Whole Life Policy
- Life Settlement Vs Surrender
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.