Yes – a COUNTRY Financial universal life policy can be sold in a life settlement. You own the contract, the buyer purchases it from you, and the insurance company’s permission is not required; COUNTRY is not a party to the decision. What determines the outcome is whether you qualify and whether the policy does – generally an insured in their senior years and a death benefit of $100,000 or more.
Universal life is the single most common policy type in the secondary market, and there is a structural reason for it. UL policies sold from the 1980s through the 2000s were illustrated at credited interest rates of 8% to 12%. Those rates never materialized. Most of these policies have spent years crediting at or near their guaranteed minimum while the internal cost of insurance rises every year with the insured’s age. The result is a premium notice in your 70s or 80s that is several times what you have been paying – or a warning that the policy will lapse.
COUNTRY Financial is an Illinois-based, farm-bureau-affiliated group headquartered in Bloomington with roots going back to 1925, and its life carrier is COUNTRY Life Insurance Company, sold through captive representatives across Midwestern and Western states. Confirm the 2026 A.M. Best rating and current product availability with the company directly. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of COUNTRY Financial.
In This Article
- The Illustration Problem in Plain English
- Request an In-Force Illustration – and Ask for It the Right Way
- Why an Underfunded UL Is Attractive to Buyers
- Watch for Surrender Charges and No-Lapse Riders
- Comparing Your Real Options
- Timeline, Escrow, and Protecting Yourself
- Taxes and Benefits – Bring in a Professional
- Frequently Asked Questions
The Illustration Problem in Plain English
A universal life policy is a bucket. Premiums go in, expense charges and monthly cost-of-insurance deductions come out, and the carrier credits interest on what remains. The policy stays alive as long as the bucket has enough in it to cover next month’s charges.
When these policies were sold, the illustration assumed the bucket would earn 8%, 10%, sometimes 12% a year forever. On that assumption a modest premium looked like it would carry the policy to age 100. Then rates fell and stayed low for decades, and many of these contracts have been crediting at their guaranteed floor – frequently in the 3% to 4.5% range depending on the contract year and product.
Meanwhile the cost of insurance is charged per $1,000 of net amount at risk and climbs steeply with age. Slower growth plus rising charges empties the bucket. The owner finds out through a lapse warning, or a demand for a much larger premium, usually at exactly the age when replacing coverage is unaffordable.
Request an In-Force Illustration – and Ask for It the Right Way
The single most useful thing you can do is request an in-force illustration from COUNTRY’s service center. Do not accept just one version. Ask specifically for:
- Current assumptions – what happens if today’s credited rate and current cost-of-insurance scale continue.
- Guaranteed assumptions – the worst case the contract permits: minimum credited rate, maximum cost of insurance. This run tells you the earliest the policy can lapse.
- Premium solve to endow or to maturity – what you would have to pay, starting now, to keep the death benefit to age 100 or 121.
Then find the lapse year on each run. The gap between the current-assumption lapse year and the guaranteed lapse year is your true margin of safety. If the guaranteed run lapses in your early 80s, the policy is more fragile than it looks. Our guide to reading an in-force illustration shows what to look for line by line.
Why an Underfunded UL Is Attractive to Buyers
It feels backwards, but the same features that make a UL painful to own make it interesting to a buyer.
Universal life is flexible. A buyer can pay the minimum required to keep the policy in force rather than the amount you were paying, and can stop overfunding it. They are not trying to build cash value; they only need the contract alive. That flexibility lets a sophisticated buyer carry a policy far more cheaply than a retiree paying whatever the annual notice says.
They also do not care about the account value the way you do. If you surrender, the account value minus any surrender charge is your entire outcome. A buyer is pricing the death benefit against the projected premium stream and an independently estimated life expectancy. That is why a UL with a nearly empty bucket can still command a real offer while the surrender desk pays you almost nothing.
| Illustration Run to Request | What It Assumes | What You Learn |
|---|---|---|
| Current assumptions | Today’s credited rate and current cost-of-insurance scale | Best realistic case and the projected lapse year |
| Guaranteed assumptions | Minimum credited rate, maximum cost of insurance | The earliest the contract can lapse – the true risk |
| Premium solve to age 100 | Coverage carried to maturity | What keeping the policy actually costs from here |
| Minimum premium to avoid lapse | Bare minimum outlay | Roughly what a buyer would pay to carry it |
| No-lapse guarantee status | Contractual secondary guarantee | Whether the guarantee is intact and to what age |
Watch for Surrender Charges and No-Lapse Riders
Two contract features materially change the comparison.
Surrender charges typically run on a declining schedule for the first ten to fifteen policy years. If yours is still in force, the surrender value you would actually receive is lower than the account value shown – which makes surrendering a weaker alternative than it appears.
A secondary guarantee or no-lapse rider promises the death benefit stays in force regardless of account value as long as a specified premium is paid on time. If your UL has one, it is valuable and fragile: a late or short payment can reduce or void it, though many contracts allow a catch-up payment plus interest within a limited window. Ask the carrier in writing for your guarantee status and the exact date it runs to, confirmed as of 2026.
Comparing Your Real Options
Before selling, price the whole menu against your actual goal:
- Pay the higher premium. Right if heirs still depend on the death benefit and the cost is manageable.
- Reduce the face amount. Lower death benefit means lower cost of insurance, which can stabilize the policy without more cash out of pocket.
- Surrender. Account value minus any surrender charge. Simple, fast, usually the smallest number.
- 1035 exchange. Move cash value to another policy or an annuity without triggering immediate income tax – but it puts no cash in your pocket.
- Life settlement. A lump sum for the contract, typically well above surrender value for qualifying policies.
- Retained death benefit. Premiums end and you keep part of the coverage.
If you are weighing the decision in general terms, read is a life settlement worth it before you commit to anything.
Timeline, Escrow, and Protecting Yourself
A UL settlement generally takes 60 to 120 days. Screening from the cover page takes days. Carrier documents – especially multiple in-force illustration runs – plus medical record retrieval take two to six weeks. Pricing and negotiation follow, then closing.
Three protections are non-negotiable. Get every offer in writing, with any broker commission disclosed as a separate line so you are comparing net proceeds. Insist that funds sit with an independent escrow agent until the carrier records the ownership change. And keep paying premiums until the transfer is complete – a policy that lapses mid-process is worth nothing to anyone, including you.
Most states also provide a rescission window after funding that lets you unwind the sale within a set number of days. Ask what applies to your situation before you sign.
Taxes and Benefits – Bring in a Professional
The tax framework, clarified in the 2017 Tax Cuts and Jobs Act, generally treats settlement proceeds up to your tax basis as a return of premium, the portion between basis and cash surrender value as ordinary income, and the remainder as capital gain. For a heavily funded UL with a long premium history, all three tiers can be in play, and any outstanding loan complicates the arithmetic further.
A lump sum can also count as a resource for means-tested programs such as Medicaid. Nothing here is legal, tax, or investment advice – it is a description of how the rules generally work. Take your actual numbers to a CPA, and involve an elder law attorney if benefits eligibility matters.
Frequently Asked Questions
Why did my universal life premium suddenly increase?
Most likely the account value can no longer cover the monthly cost of insurance. Policies sold in the 1980s through 2000s were illustrated at 8% to 12% interest but have credited near their guaranteed minimum for years, while cost-of-insurance charges rise with the insured’s age. The carrier then requires a larger premium to keep the policy from lapsing.
Does COUNTRY Financial need to approve a life settlement?
No. The policy is your property and the sale is a private transaction between you and the buyer. The carrier’s only role is recording the new owner and beneficiary after closing. It is not a party to the decision and cannot prevent it.
What exactly should I ask the carrier for?
Request in-force illustrations at both current and guaranteed assumptions, a premium solve to carry the policy to age 100, the minimum premium needed to avoid lapse, and written confirmation of any no-lapse guarantee status and its end date. Ask for them in writing and confirm the details as of 2026.
My account value is nearly gone. Is the policy still sellable?
Possibly. Buyers price the death benefit against the projected premium needed to keep the contract alive and an independently estimated life expectancy, not the account balance. A UL that would pay you almost nothing at surrender can still be a legitimate settlement candidate if the death benefit is large enough.
How much do policies typically sell for?
Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, and on average several times cash surrender value. Those are market-wide ranges, not a quote. Age, health, death benefit size, required premium, and existing loans all move the number.
What is a surrender charge and does it matter here?
Surrender charges are deductions the insurer applies if you cash in a policy during roughly the first ten to fifteen years, on a declining schedule. If one is still in force, your actual surrender payout is lower than the account value shown, which makes surrendering a weaker alternative than the statement suggests.
Should I stop paying premiums while I explore selling?
No. A lapse ends the policy and the transaction with it, and you would receive nothing. Keep paying on schedule until the ownership change is recorded and escrow releases your funds.
How do I start?
Send the policy cover page – insurer, policy number, face amount, issue date – for a free policy review, or call (305) 209-7183. There is no cost and no obligation, and you will get a straight answer before medical records are involved.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Sell My Country Financial Whole Life Policy
- Sell My Country Financial Guaranteed Universal 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.