Yes. A Brighthouse Financial variable universal life policy can be sold in a life settlement — the contract is yours to transfer, a buyer purchases it from you, and Brighthouse’s approval is not required for the sale. The carrier records the new owner and beneficiary after closing and nothing more.
Variable universal life differs from other policies in how it is valued, not in whether it can be sold. The account value sits in investment subaccounts with no floor, while monthly charges — cost of insurance, administrative fees, and mortality and expense charges — come out regardless of what markets did. A weak stretch of returns combined with charges that climb every year is the most common path to a lapse notice.
Below: how buyers model a VUL, which documents the prospectus adds to the file, and what to compare an offer against. Pine Lake Life Solutions is not affiliated with Brighthouse Financial or MetLife.
In This Article
Brighthouse, MetLife, and Variable Policy Servicing
MetLife completed the spinoff of its U.S. retail life and annuity business into Brighthouse Financial on August 4, 2017. Variable life policies sold through that retail channel generally moved with the separation, so a contract bearing a MetLife name may be serviced today by Brighthouse in Charlotte, North Carolina (verify with the number on your statement). In 2025 Brighthouse announced an agreement to be acquired by an outside investment firm, subject to regulatory approval — verify the current status in 2026.
Variable contracts are securities sold with a prospectus, and they are often handled by a different service unit than fixed life products. If you also hold a variable annuity, note that annuities and life policies are separate contracts with separate paperwork, even when both carry the same brand. None of this affects your ability to sell the life policy.
How a VUL Drains
Premium net of charges is allocated to subaccounts you choose — equity, bond, balanced, money market — inside the separate account. Returns are whatever those funds deliver, up or down. Each month the insurer deducts cost-of-insurance charges based on the insured’s attained age, plus administrative and mortality-and-expense charges, plus fund-level expenses embedded in the subaccounts.
The failure mode is mechanical. Charges are satisfied by redeeming units, so a falling market forces the policy to liquidate more units to pay the same charge — the account value erodes faster precisely when returns are worst. Add cost of insurance accelerating through the seventies and eighties, and a policy that once looked self-sustaining can require a very large premium to survive. Most owners find out when the lapse warning arrives.
What a Buyer Actually Models
A buyer projects how long the policy survives at current charges, what premium is required to carry it to age 100, and how the result changes under conservative return assumptions. Two policies with the same death benefit price very differently when one needs $8,000 a year to sustain and the other needs $30,000.
Because subaccount returns are uncertain, buyers use conservative assumptions rather than the illustrated rate — which is why offers can feel low to an owner who is comparing them to a 1990s illustration built on optimistic returns. According to the federal GAO’s study of this market (GAO-10-775), sellers have typically received somewhere between 10% and 35% of the policy’s face value — on average about four to eight times what surrendering would have paid. The honest benchmark is not the illustration; it is what surrendering would actually put in your pocket today, and for a depleted VUL that figure is often small.
| Policy Feature | How It Affects a Settlement | Where to Find It |
|---|---|---|
| Subaccount allocation | Drives volatility of the value sustaining the policy | Quarterly statement |
| Monthly cost-of-insurance charges | Rise with attained age; main driver of lapse risk | Annual statement, itemized deductions |
| Mortality and expense charges plus fund expenses | Add to the cost a buyer must fund each year | Prospectus and supplements |
| Outstanding loan | Reduces any offer dollar-for-dollar | Annual statement |
| Surrender charge schedule | Lowers the surrender alternative you compare against | Prospectus or contract schedule pages |
| Riders (term, chronic illness, waiver) | May add death benefit or provide benefits without a sale | Statement rider list; confirm with the carrier |
The Documents a Variable Policy Requires
Variable contracts need a thicker file than fixed ones:
- Recent annual and quarterly statements — account value, subaccount allocations, surrender value, loans, and itemized monthly deductions.
- An in-force illustration at current charges, run at several assumed rates including a conservative case and the guaranteed worst case.
- The product prospectus and any supplements, which disclose mortality and expense charges, fund expenses, surrender-charge schedules, and rider terms.
- The policy cover page, which is all that is needed to begin a free review.
The prospectus is easy to overlook and genuinely matters. Fund expenses stack on top of policy charges, so an allocation sitting in higher-cost subaccounts changes the projection a buyer builds.
Loans, Surrender Charges, and Riders
Three contract features quietly move the number. An outstanding loan and its accrued interest reduce what a buyer eventually collects, so the balance is subtracted from any offer. Surrender charges, which run for a schedule of years after issue, reduce the surrender alternative you are measuring an offer against — a useful thing to know before assuming surrender is the safe default. And riders matter in both directions: a term rider adds death benefit, while a long-term-care or chronic-illness rider may already give you access to benefits without selling anything.
Pull the rider list from your statement and ask the service center to explain what each one currently provides. Occasionally a rider makes the sale unnecessary.
The Transaction, Step by Step
Send the cover page for a free review — a matter of days. Assemble statements, the prospectus, and the in-force illustration, and sign a HIPAA authorization so independent underwriters can estimate life expectancy from medical records — two to six weeks. Review written offers and, if a broker is involved, ask for gross and net-of-commission figures. Sign contracts, funds go to an independent escrow agent, the change-of-ownership form goes to Brighthouse, and escrow releases payment once the transfer is confirmed. Most states then provide a rescission window. Overall, 60 to 120 days.
Do not let the policy lapse while any of this is underway. If a lapse notice arrives, act on it immediately.
Qualifying, and the Cases Where You Should Not Sell
Typical candidates: insured roughly 65 or older, or younger with meaningful health conditions; death benefit of $100,000 or more; policy beyond the two-year contestability period; and a premium or lapse risk that has become uncomfortable. Small policies and heavily loaned policies are difficult to place.
Do not sell if the death benefit still supports people who depend on it and the funding is sustainable, or if a rider already delivers what you need. Proceeds may be taxable and can affect needs-based benefit eligibility, so speak with your own tax adviser, and with an elder-law attorney where Medicaid planning is involved. For the broader picture see settlement versus surrender, what policies qualify, or the education center — or call (305) 209-7183 and send the cover page.
Frequently Asked Questions
Can a variable universal life policy be sold?
Yes. The policy type does not limit the right to sell; a buyer purchases the contract from you and the carrier records the ownership change. Variable policies simply require more documentation because the value depends on investment subaccounts and the product carries a prospectus.
Why does the offer look low compared to my old illustration?
Illustrations were often built on optimistic assumed returns, while buyers price using conservative assumptions and current charges. The right benchmark is what surrendering the policy would pay you today, which for a depleted variable policy is frequently small.
Does Brighthouse have to consent to the sale?
No. Brighthouse processes the change-of-owner and change-of-beneficiary forms after closing. It does not evaluate or approve the transaction, and the right to transfer a policy was confirmed by the Supreme Court in Grigsby v. Russell in 1911.
What documents will I be asked for?
Recent annual and quarterly statements, an in-force illustration at current charges, and the product prospectus with any supplements. To simply start a free review, the policy cover page alone is enough. A HIPAA authorization comes later so life expectancy can be estimated.
My policy shows a MetLife name. Who services it now?
MetLife spun off its U.S. retail life and annuity business into Brighthouse Financial, completing the separation on August 4, 2017, so many individual variable policies are serviced by Brighthouse today. Your contract rights are unchanged. Confirm with the number on your most recent statement.
Do surrender charges affect what I receive?
They do not reduce a settlement offer directly, but they do reduce the surrender value you would receive if you cashed out instead. Knowing the surrender charge schedule tells you how much a settlement actually improves on your alternative.
What if a lapse notice arrives during the process?
Deal with it immediately. A lapsed policy has no value to a buyer, and reinstating one can require new evidence of insurability. Tell whoever is handling the review the moment the notice arrives.
Is Pine Lake affiliated with Brighthouse Financial?
No. Pine Lake Life Solutions is independent and has no affiliation with Brighthouse Financial or MetLife. This page is educational and is not tax, legal, or investment advice.
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Related Reading
- Cash Surrender Value Life Insurance
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Education Center
- Sell My Brighthouse Universal Life Policy
- Sell My Brighthouse Whole 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.