Yes. A variable universal life policy serviced by Athene can be sold through a life settlement, because you own the contract and can transfer it; the carrier’s consent is not part of the deal. That right traces back to the 1911 Supreme Court decision in Grigsby v. Russell and applies no matter which company issued or now administers the policy.
VUL adds one complication no other policy type has: your cash value sits in separate-account subaccounts that rise and fall with the markets. The surrender value quoted to you this month is not the surrender value next month, which makes a moving target out of the number most sellers use as their benchmark.
Below is how buyers actually look at a VUL contract, what the internal charges are doing to your account value, and how to get an in-force illustration that shows the truth. Pine Lake Life Solutions is not affiliated with Athene.
In This Article
- Athene, Acquired Blocks, and the Name on Your Statement
- Why VUL Cash Value Is a Moving Number
- M&E Charges and the Rising Cost of Insurance
- Get an In-Force Illustration at Two Sets of Assumptions
- How a Buyer Prices a VUL Policy
- Paperwork Checklist for a VUL Sale
- Alternatives to Weigh Before You Sell
- Frequently Asked Questions
Athene, Acquired Blocks, and the Name on Your Statement
Athene is best known as an annuity company. It expanded in the United States mostly by buying and reinsuring closed blocks of existing life business rather than by pushing new retail life sales, with the 2013 acquisition of Aviva USA as the landmark deal. Athene also completed a merger with Apollo Global Management in 2022; verify the current corporate structure and the servicing entity name for 2026 before quoting it to anyone.
So if the policy in your file cabinet carries one company’s logo and the statement in your mailbox carries another, you are not confused, the industry simply moved around you. It has no effect on your ownership rights. Confirm today’s servicing entity and Athene’s current A.M. Best rating through the carrier directly.
Why VUL Cash Value Is a Moving Number
In a VUL, premium net of charges is allocated to subaccounts that work like mutual funds inside an insurance wrapper. A strong market year can lift account value; a weak one can cut it. The surrender value on your December statement may look nothing like the one you get in March.
This matters for sellers in two ways. First, do not anchor your expectations to a stale statement. Second, understand that a settlement offer is not a percentage of your subaccount balance, so a bad market quarter does not automatically shrink an offer. Buyers care about the death benefit, the cost of keeping the policy alive, and the insured’s life expectancy.
M&E Charges and the Rising Cost of Insurance
Two internal drags sit inside every VUL. Mortality and expense risk charges are deducted against the account value for the insurer’s risk and administrative costs. Separately, a monthly cost-of-insurance charge buys the pure death protection, and that charge climbs every year as the insured ages.
In an underfunded VUL, those rising charges eventually eat the account value faster than the subaccounts can grow it. The policy quietly heads toward a lapse date that no one told the owner about. Owners in their 70s and 80s are often shocked to see a policy they have paid into for 25 years projected to fail within a few years unless premiums jump sharply.
| What Changes | Effect on Cash Surrender Value | Effect on a Settlement Offer |
|---|---|---|
| Subaccounts drop 15% in a quarter | Falls immediately | Little direct effect; buyer prices the death benefit |
| Insured’s health declines | No effect | Can raise the offer |
| Cost of insurance rises with age | Erodes account value over time | Higher carrying cost can lower the offer |
| Outstanding policy loan | Reduces net surrender proceeds | Netted out of closing proceeds |
Get an In-Force Illustration at Two Sets of Assumptions
Ask the carrier for an in-force illustration showing the policy at a modest assumed rate of return and again at a zero or guaranteed assumption. The zero-return page is the honest one: it shows the year the policy lapses if the subaccounts do nothing for you.
Bring both pages to the conversation. A buyer will want them, and so should you, because they answer the real question behind most VUL decisions: how much more money will I have to put in, and for how long, to keep this policy from collapsing?
How a Buyer Prices a VUL Policy
Buyers value the death benefit and the premium load required to carry it, not the subaccount balance. A typical model projects the minimum premium needed to keep the contract in force through the insured’s life expectancy, then discounts the expected death benefit back to present value.
The historical range reported in the federal GAO study of the secondary market (GAO-10-775, published 2010) was about 10% to 35% of face value, with settlements frequently paying several times what surrendering would have returned. Those are market-wide ranges from a study, not a promise about your policy.
Paperwork Checklist for a VUL Sale
Gather the policy cover page, the most recent quarterly or annual statement showing subaccount allocations and account value, a current premium notice, and the in-force illustrations described above. If the policy has an outstanding loan, request a loan payoff figure as of a specific date, since a loan is netted out at closing.
You will also sign HIPAA authorizations so medical underwriters can review records, and a carrier authorization so the buyer’s representative can request verification of coverage. Signing these does not obligate you to sell anything.
Alternatives to Weigh Before You Sell
Surrendering hands you the current cash surrender value and ends the coverage. A 1035 exchange can move the value into a different policy or an annuity without an immediate tax event, though it does not put cash in your pocket. Reducing the face amount lowers the cost of insurance and can stretch the account value further if you still need some coverage.
Each of those can be the right answer. If the death benefit still protects a surviving spouse or a special-needs beneficiary, keeping the policy usually wins. Compare the choices with your own tax and legal advisors, then decide.
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
Does Athene have to approve the sale of my VUL policy?
No. The buyer purchases the contract directly from you, and the carrier simply records the ownership and beneficiary change afterward. Your right to transfer a policy you own was settled by the Supreme Court in 1911.
My account value dropped this year. Did I lose my chance to sell?
Not necessarily. Settlement offers are built on the death benefit, the premium needed to keep the policy in force, and life expectancy, not on the subaccount balance. A weak market year mostly affects what surrendering would pay.
What are M&E charges?
Mortality and expense risk charges are internal deductions that compensate the insurer for its risk and administrative costs. They come out of account value alongside the monthly cost-of-insurance charge, which increases as the insured ages.
Why does my paperwork show a different insurer than Athene?
Athene grew mainly by acquiring and reinsuring closed blocks of life business, including Aviva USA in 2013, so many policyholders bought from a different company name than the one servicing them now. Verify the current servicing entity with the carrier.
What documents should I send for a free policy review?
Start with the policy cover page. If you have them handy, add the latest statement and a premium notice. A recent in-force illustration is helpful but a reviewer can request one for you.
Will I owe tax on the money?
Possibly. Life settlement proceeds can be partly tax-free and partly taxable depending on your basis and the policy’s cash value, and the 2017 federal tax law changed how basis is calculated. Talk to a CPA about your own situation before closing.
How long will the sale take?
Roughly 60 to 120 days is typical. Medical record retrieval and the carrier’s turnaround on illustrations drive most of the timeline.
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Related Reading
- Cash Surrender Value Life Insurance
- What Policies Qualify For Life Settlement
- What Is A Policy Loan
- Education Center
- Sell My Athene Guaranteed 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.