Yes. A guaranteed universal life policy serviced by Athene can be sold in a life settlement, because the policy is your property and the buyer purchases the contract from you; Athene’s permission is not required. The U.S. Supreme Court confirmed that a life insurance policy is transferable property in Grigsby v. Russell back in 1911, and the rule applies to every carrier. What decides the outcome is whether you and the policy qualify, not whose name is printed on the cover page.
GUL is a special case, and a good one for sellers. A no-lapse guarantee policy is built to be pure death benefit: almost every dollar of premium buys the guarantee rather than building an account value. That means surrendering a GUL contract often returns close to nothing, so a settlement is frequently the only way to recover real money from it.
This guide covers how buyers price a GUL guarantee, the one mistake that can quietly destroy it, and the paperwork Athene will ask for. Pine Lake Life Solutions is not affiliated with Athene.
In This Article
- Why Your Policy May Say a Different Company Name
- GUL Is Priced as Pure Death Benefit, Not Savings
- One Late or Short Premium Can Void the Guarantee Forever
- How Buyers Value a GUL Contract
- Documents Athene Owners Should Gather
- What the Process Looks Like, Start to Finish
- Who Tends to Qualify, and Who Does Not
- Frequently Asked Questions
Why Your Policy May Say a Different Company Name
Athene built its U.S. book largely by acquiring and reinsuring closed blocks of business from other insurers rather than by writing much new retail life coverage. Its 2013 purchase of Aviva USA is the best-known example. Athene also combined with Apollo Global Management in a merger completed in 2022, though you should verify the current corporate structure for 2026 before relying on it.
The practical effect for policyholders: the company that mails your annual statement today may not be the company whose agent sat at your kitchen table decades ago. Many owners are surprised to find Athene servicing a contract originally issued under a legacy brand. Verify which legacy block your specific policy sits in by calling the service number on your most recent statement, and confirm Athene’s current A.M. Best rating on the carrier’s own site rather than trusting an old brochure.
GUL Is Priced as Pure Death Benefit, Not Savings
A guaranteed universal life contract promises that the death benefit stays in force to a stated age, often 90, 95, 100, or 121, as long as you pay the scheduled premium on time. To make that promise cheap, the insurer strips out the savings element. Cash value in a GUL policy is usually tiny and, in many designs, drops back to zero after the early years.
That single design fact changes the whole conversation. With whole life, a seller compares an offer to a meaningful surrender check. With GUL, the surrender check may be a few hundred dollars on a $500,000 policy, so the comparison is really between a settlement and simply walking away with nothing. That is why GUL owners who no longer want the premium bill should price a settlement before letting the policy lapse.
One Late or Short Premium Can Void the Guarantee Forever
The no-lapse guarantee is a contractual condition, not a courtesy. Most GUL contracts track a shadow account or a cumulative-premium test: pay less than the required amount, or pay late, and the guarantee can be reduced or permanently forfeited even though the policy itself stays in force on its remaining account value. Owners often do not learn this until years later, when the policy suddenly needs a much larger premium to survive.
Many contracts allow a catch-up: pay the missed amount plus interest within a stated window and the guarantee is restored. Others allow reinstatement after a lapse with evidence of insurability. The rules vary by contract series, so ask Athene in writing whether your guarantee is intact, what the catch-up amount is, and what the deadline is. Get the answer before you shop the policy, because a broken guarantee lowers what a buyer will pay.
| Exit Option for a GUL Policy | What You Receive | Coverage Afterward | Best When |
|---|---|---|---|
| Let the policy lapse | Nothing | None | Only if no buyer interest and no cash need |
| Surrender to the carrier | Cash surrender value, often near zero on GUL | None | Rarely the best choice for GUL |
| Reduce the face amount | No cash; lower premium | Smaller guaranteed death benefit | You still need some coverage but less premium |
| Life settlement | Lump sum, historically 10-35% of face value (GAO-10-775) | None, unless a retained-benefit structure is used | Coverage no longer needed and premiums are a burden |
How Buyers Value a GUL Contract
An institutional buyer models what it will have to pay to keep the policy alive until the death benefit is paid. For GUL that math is unusually clean: the required premium is known, the guarantee period is known, and there is no interest-rate assumption to argue about. The buyer then applies life expectancy estimates, usually from independent medical underwriting firms, and discounts the expected payout back to today.
Because the cost of carrying the policy is predictable, GUL is often attractive to buyers, especially where the guaranteed premium is low relative to face amount and the insured has health conditions that shorten life expectancy. Nationally, sellers have historically received somewhere in the range of 10% to 35% of face value, according to the federal GAO study published in 2010 (GAO-10-775). Offers on any individual policy can fall outside that range in either direction.
Documents Athene Owners Should Gather
Start with the policy cover page, which shows the owner, insured, face amount, issue date, and policy number. Add your most recent annual statement and a current premium notice. Then request two things from the carrier in writing: an in-force illustration and a written confirmation of the no-lapse guarantee status.
For a GUL, ask for the in-force illustration run at the guaranteed premium and also at the minimum premium that keeps the guarantee intact. Those two pages tell a buyer nearly everything it needs. You will also complete HIPAA authorizations so an underwriter can order medical records. Nothing you sign at this stage commits you to selling.
What the Process Looks Like, Start to Finish
A typical life settlement runs about 60 to 120 days. The first stage is a no-cost review of the cover page and basic health history to see whether the policy is a realistic candidate. If it is, you sign authorizations, the carrier is asked for the in-force illustration and verification of coverage, and medical records are ordered.
Underwriters then issue life expectancy reports, buyers bid, and you decide whether to accept. Closing paperwork moves the ownership and beneficiary designation to the buyer, funds go into escrow, and the money is released to you after the carrier confirms the change of ownership. Most states also give the seller a rescission period after funding, during which the sale can be unwound by returning the money.
Who Tends to Qualify, and Who Does Not
Buyers generally look for insureds in their late 60s or older, or younger insureds with a serious health impairment, plus a death benefit of $100,000 or more and a policy that is past the contestability period. A GUL with a long remaining guarantee, a modest required premium, and an insured whose health has declined since issue is a strong profile.
Policies that usually do not clear the bar include small face amounts, policies on insureds in excellent health at younger ages, and GUL contracts where the guarantee has already been voided and the projected premium to keep the policy alive is enormous. If your policy does not qualify, the honest answer is to say so, and to compare the remaining options with your own advisor.
Pine Lake Life Solutions reviews policies with a death benefit of $100,000 or more and typically pays more than cash surrender value. Send the policy cover page for a free policy review, or call (305) 209-7183. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Do I need Athene’s approval to sell my GUL policy?
No. You are selling the contract, not asking the carrier for a favor. Athene’s role is administrative: it records the new owner and beneficiary after closing. The right to transfer a policy was established in Grigsby v. Russell in 1911.
My GUL has almost no cash value. Is it still worth anything?
Often yes. Buyers price a GUL on the death benefit, the guaranteed premium, and the insured’s life expectancy, not on account value. A policy with a near-zero surrender value can still draw a meaningful offer if the insured is a senior or has health impairments.
What happens if I missed a premium and lost the no-lapse guarantee?
The policy may still be in force but will now burn through account value faster. Ask Athene in writing whether a catch-up payment restores the guarantee and by what date. A broken guarantee usually reduces offers because the buyer’s future premium cost goes up.
Why does my old policy paperwork show a different insurance company?
Athene grew mainly by acquiring and reinsuring closed blocks of life business from other insurers, including the Aviva USA acquisition in 2013. Verify which entity services your contract today by calling the number on your latest statement.
How much can I expect to receive?
There is no fixed formula. The 2010 GAO report on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, and settlements commonly paid several times cash surrender value. Your own number depends on age, health, face amount, and the premium needed to carry the policy.
Are the proceeds taxable?
Part of a settlement payment can be taxable. In general, amounts up to your cost basis are treated one way and amounts above that another, and rules changed under the 2017 federal tax law. Ask a CPA or tax attorney about your specific numbers before you close.
How long does the whole process take?
Plan on roughly 60 to 120 days from the first review to funding. Waiting on medical records from doctors’ offices is usually the slowest step, and the carrier’s turnaround on the in-force illustration adds time as well.
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Related Reading
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- What Is A Rescission Period
- Sell My Athene Variable Universal Policy
- Sell My Athene Group Life 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.