Yes – an Assurity whole life policy can be sold in a life settlement, because you own the contract and the buyer purchases it from you; Assurity’s approval is not required. That is true of every carrier’s policies. The real gating questions are the insured’s age and health, whether the death benefit is large enough to interest a buyer – generally $100,000 or more – and whether the premium load makes sense for someone else to carry.
Assurity owners should read that face-amount point carefully. Assurity Life Insurance Company, headquartered in Lincoln, Nebraska and operating as a mutual organization, built much of its individual life business around simplified-issue and accelerated-underwriting products – policies designed to be issued quickly, often at smaller face amounts. A large share of Assurity whole life contracts in force are below the size the secondary market typically buys. That does not make them worthless; it means the honest comparison for many owners is surrender or reduced paid-up, not a settlement.
Below: who Assurity is in 2026, how guaranteed cash value and dividends work into the math, what to gather, and when to keep the policy. Pine Lake Life Solutions is not affiliated with Assurity Life Insurance Company.
In This Article
- Who Is Assurity, and Who Services Your Policy?
- The Face Amount Question, Answered Honestly
- Guaranteed Cash Value and Whether Your Policy Pays Dividends
- Settlement, Surrender, or Reduced Paid-Up
- Documents to Gather
- The Change of Ownership, and What the Carrier Does
- Timeline, Escrow, and Rescission
- When Keeping the Assurity Policy Is the Right Answer
- Frequently Asked Questions
Who Is Assurity, and Who Services Your Policy?
Assurity Life Insurance Company is based in Lincoln, Nebraska and is a mutual organization – it has no publicly traded stock and is not owned by shareholders. It reports more than a century of operating history, over $22 billion of life insurance in force, and roughly $2.6 billion in assets. It has not been broken into runoff blocks the way several older carriers were, so your servicing company is very likely Assurity itself.
Two distinguishing facts worth knowing. Assurity is a Certified B Corporation, a third-party certification of social and environmental performance standards that very few insurers hold. And AM Best rates Assurity A- (Excellent), a rating it has held on a stable basis since 2019. Verify the current rating at ambest.com, and take the policyholder service number from your own annual statement rather than a search result.
The Face Amount Question, Answered Honestly
Secondary-market buyers underwrite each case individually – ordering medical records, commissioning a life expectancy assessment, running legal and escrow. Those costs are roughly the same on a $75,000 policy as on a $750,000 policy. That is why a death benefit of $100,000 or more is the practical threshold, and why smaller policies are frequently declined even when the insured would otherwise qualify.
If your Assurity whole life policy was issued through a simplified-issue product with a face amount of $50,000 or $25,000, the productive conversation is different: compare the guaranteed cash surrender value against reduced paid-up insurance and against simply keeping the policy. A free review should tell you plainly which category you are in rather than stringing you along.
Guaranteed Cash Value and Whether Your Policy Pays Dividends
Every whole life policy carries a guaranteed cash value table. Find the current policy year, subtract any surrender charge still applicable and any outstanding loan, and you have the net surrender value – the floor beneath any offer.
Then check one word on your data page: participating. Some whole life contracts are participating and may be credited dividends; many simplified-issue and smaller-face whole life products are non-participating and pay none at all. Do not assume either way. If your Assurity policy is participating and dividends bought paid-up additions, your real death benefit is larger than the face amount printed on the cover page and a buyer would price the total. If it is non-participating, the guaranteed table is the whole story, which at least makes the comparison simple. Confirm with the carrier in 2026.
Settlement, Surrender, or Reduced Paid-Up
Whole life offers a third path that is easy to overlook. Reduced paid-up insurance converts your accumulated cash value into a smaller death benefit that stays in force for life with no further premium due. No cash today, but the coverage never lapses and the premium burden ends.
Federal research (GAO-10-775) found settlement proceeds commonly running several times cash surrender value, and offers in the market generally fall in a band of roughly 10% to 35% of face. But those figures assume the policy is large enough to be bought at all. For a small Assurity whole life contract, the real menu is usually surrender versus reduced paid-up versus keeping it – and reduced paid-up is often the underrated choice when the premium is the problem but the coverage is still wanted. Ask the carrier to quote it in writing.
| Your situation | Life settlement | Surrender | Reduced paid-up |
|---|---|---|---|
| Face amount under $100,000 | Usually not available | Realistic option | Realistic option |
| Face $100,000+, insured 70+, coverage no longer needed | Strongest fit | Sets the floor to beat | Worth quoting anyway |
| Premium unaffordable, coverage still wanted | Poor fit | Ends coverage entirely | Often the best answer |
| Small cash value, Medicaid spend-down underway | Timeline may be too long | Often simplest | May not reduce countable assets |
| Insured terminally ill | Possible but slower | Gives up the death benefit | Reduces the benefit |
Documents to Gather
To start a free policy review you need only the policy cover page. To get a firm answer, add the most recent annual statement showing current cash value, any dividend accumulations or paid-up additions and any loan; an in-force illustration requested from the carrier; a written loan payoff figure if applicable; and the reduced paid-up quote.
While you are on the phone with the carrier, ask whether the policy is participating and what the current net surrender value is as of today. Carriers typically take about two weeks to produce in-force illustrations, so request early. Health information about the insured matters more than any other single factor if a settlement is on the table.
The Change of Ownership, and What the Carrier Does
If the case proceeds, the sale is completed when the carrier records a new owner and beneficiary. That is done on the carrier’s own change-of-ownership form or by absolute assignment, signed by you and sometimes notarized. Confirm with Assurity in 2026 which form applies and whether a notary is needed – service requirements vary and change.
The carrier is recording a transfer, not approving one. It cannot block the sale, and it does not need to consent. Practically, this step sets the pace of the closing, because escrowed funds are released after the carrier confirms the change on its books.
Timeline, Escrow, and Rescission
Expect 60 to 120 days from first conversation to funds received. The order is: free review, medical record retrieval with your written authorization, life expectancy assessment, offers, closing package, escrow, carrier transfer, funds released. Medical records are the slowest step and the one nobody can accelerate.
Most states provide a rescission period after closing, giving you a defined number of days to unwind the sale and return the money. Keep paying premiums until the transfer is confirmed, and never pay an upfront fee simply to learn what a policy is worth.
When Keeping the Assurity Policy Is the Right Answer
Keep it if the death benefit still has a job. A surviving spouse with limited income, a special-needs beneficiary, or final expenses a family has already planned around are all reasons the coverage is worth more in force than converted to cash.
Two more honest cases. If the net cash surrender value is under roughly $15,000 and you are in a Medicaid spend-down, a straightforward surrender is often faster and simpler than a settlement, and the difference may not justify four months of process – though an elder law attorney should weigh in on timing, because cash counts differently than a policy. And if the insured is terminally or chronically ill, check the contract for an accelerated death benefit rider, which typically pays through the carrier much faster. Take tax questions to your own tax professional; the general rule is that proceeds up to your basis are typically tax-free, amounts up to the surrender value are typically ordinary income, and the excess is generally capital gain.
Frequently Asked Questions
Does Assurity have to approve the sale of my policy?
No. You own the contract and may transfer it. Assurity’s role is limited to recording the change of owner and beneficiary after the transaction closes.
Is Assurity a stock company or a mutual?
Assurity operates as a mutual organization headquartered in Lincoln, Nebraska, with no publicly traded stock. It is also a Certified B Corporation, which is unusual among life insurers. Verify current corporate details with the company.
How is Assurity rated financially?
AM Best rates Assurity A- (Excellent), a rating it has held on a stable basis since 2019. Confirm the current rating at ambest.com. Carrier strength affects claims payment, not your ability to sell a policy.
My Assurity policy is only $50,000. Can I sell it?
Usually not through the secondary market. Underwriting a case costs about the same regardless of size, so buyers generally look for $100,000 or more. For a smaller policy, compare the cash surrender value against reduced paid-up insurance and against simply keeping it.
Does my Assurity whole life policy pay dividends?
It depends on whether the contract is participating, which is stated on the policy data page. Many simplified-issue whole life products are non-participating and pay no dividends. Ask the carrier to confirm rather than assuming.
What is the difference between surrender value and a settlement offer?
Surrender value is what the carrier contractually pays you to cancel. A settlement offer is what a third party pays to own the policy and continue the premiums. Federal research has found settlement proceeds commonly exceeding surrender value by several times, but only on policies buyers will actually purchase.
Will a policy loan reduce what I receive?
Yes. An outstanding loan plus accrued interest is generally paid off from the proceeds at closing under any option, so request a written payoff figure before comparing numbers.
How do I find out where my policy stands?
Send the policy cover page for a free policy review, or call (305) 209-7183. There is no obligation and no upfront fee, and a straight review will tell you if a settlement is not realistic for your policy.
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Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- What Is Cash Surrender Value
- What Is The Medicaid Look Back Period
- Sell My Assurity Universal Life Policy
- Education Center
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.