Yes — you can sell an Everlake Life universal life policy through a life settlement if you and the policy qualify, because the policy is your property and the buyer purchases the contract from you; the carrier’s permission is not required and the carrier is not a party to the decision. Universal life is the type most often sold in the secondary market, and the reason is structural rather than accidental.
Everlake Life Insurance Company is the former Allstate Life Insurance Company, which Allstate agreed to sell in 2021 to a Blackstone-backed buyer and which was subsequently renamed. If you bought universal life from an Allstate agent in the 1980s, 1990s, or 2000s, that agent is long gone and the statement now comes from a name you do not recognize. That is a servicing change, not a change to your contract.
What may have changed is the policy’s health. Below: why old universal life policies get expensive at exactly the wrong age, the one document that tells you how bad it is, and what buyers actually pay for. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Everlake Life Insurance Company or Allstate. Educational only — not legal, tax, or investment advice.
In This Article
- The Interest-Rate Problem Baked Into 1980s–2000s Universal Life
- Run-Off Servicing: What to Expect and What Not to Worry About
- Request the In-Force Illustration — Both Versions
- Levers to Pull Before You Decide Anything
- How Buyers Value an Everlake Universal Life Policy
- Surrender, Lapse, or Sell — Run the Comparison Honestly
- Documents, Timeline, and the Honest Screen
- Frequently Asked Questions
The Interest-Rate Problem Baked Into 1980s–2000s Universal Life
Universal life works like an account with an insurance charge attached. Premiums go in, interest is credited, and every month the company deducts the cost of insurance plus expenses. Whether the policy survives depends on whether the account keeps up with the deductions.
Policies sold from the 1980s through the 2000s were commonly illustrated at crediting rates of 8% to 12%, because that reflected the interest environment of the era. Rates then fell for decades, and a great many of those policies have spent years crediting at or near their contractual guaranteed minimum. The account value the original illustration assumed would carry the policy to age 100 never accumulated.
Meanwhile the cost of insurance is age-based and climbs every year — gently in your 50s, steeply in your 70s and 80s. The result is the notice thousands of families receive each year: pay substantially more, or the policy lapses. Nothing about the coverage changed. The arithmetic underneath it did.
Run-Off Servicing: What to Expect and What Not to Worry About
A company that no longer writes new coverage is in run-off, administering a closed block of existing policies. Three practical points for Everlake policyholders:
Your contract terms are intact. The guaranteed minimum crediting rate, the maximum cost-of-insurance rates the contract allows, the death benefit options, and the grace period language all remain exactly what your policy says. An acquiring company steps into the same obligations.
Service takes longer. There is no local agent to walk a request through. Requesting an in-force illustration by phone and mail from a service center can take weeks. If you are near a grace-period deadline, say so on the call and ask what the expedited process is.
Verify the basics before relying on anything. As of 2026, confirm the servicing entity for your policy, the correct in-force service phone number, where premiums should be sent, and — if it matters to your decision — the current A.M. Best rating. Also note that every state has a life and health insurance guaranty association with state-specific limits; confirm your own state’s terms rather than assuming.
Request the In-Force Illustration — Both Versions
An in-force illustration is the carrier’s year-by-year projection of your specific policy going forward. It is the single most informative document you can obtain, and it is free. Ask for it in three forms:
- Current assumptions — today’s crediting rate and current charges. The optimistic view.
- Guaranteed assumptions — the guaranteed minimum crediting rate and the maximum charges the contract permits. The worst case the contract allows.
- Premium solve to age 100 — the premium required to carry the policy to maturity under each set of assumptions.
When they arrive, find the year the account value reaches zero in each version. That is the lapse year. If the guaranteed-assumption lapse year is close, the policy is more fragile than the current-assumption page suggests. Full walkthrough: what an in-force illustration is.
Request it in writing and keep the file. A settlement buyer will need the same document, so getting it early saves weeks later.
| Document to Request | Who Provides It | What It Tells You | Typical Wait |
|---|---|---|---|
| Current annual statement | Servicing company | Account value, surrender value, loan, charges | Already mailed to you |
| In-force illustration, current assumptions | Servicing company | Projected lapse year at today’s rates | Often 1–3 weeks |
| In-force illustration, guaranteed assumptions | Servicing company | Worst case the contract allows | Request with the above |
| Premium solve to age 100 | Servicing company | What it truly costs to keep the policy | Request with the above |
| Written loan payoff figure | Servicing company | Amount deducted from any proceeds | Days |
| Current change-of-ownership forms | Servicing company | Prevents rejected paperwork at closing | Days |
Levers to Pull Before You Decide Anything
Universal life is flexible, and some of that flexibility can solve the problem without a sale. Ask the service center about each:
- Switch death benefit Option B to Option A. Option B pays the face amount plus the account value, meaning insurance charges apply to a larger amount at risk. Switching to a level death benefit can lower the monthly cost of insurance.
- Reduce the face amount. A smaller death benefit means a smaller monthly charge. Careful, though: dropping below $100,000 will likely take the policy out of the settlement market.
- Reduce or drop riders. Waiver of premium, accidental death, and child riders all carry charges that may no longer serve a purpose.
- Address any policy loan. A loan reduces the account value that supports the policy and accrues interest, accelerating lapse.
If those changes make the policy affordable and the family still needs the coverage, keeping it is the better outcome. If they do not, keep reading.
How Buyers Value an Everlake Universal Life Policy
Three inputs dominate.
Death benefit. Buyers generally look for $100,000 or more. Larger policies attract more competing interest.
Minimum premium to avoid lapse. A buyer will fund the policy at the lowest premium that reliably keeps it in force, not at whatever you have been paying. This is why a policy that has become unaffordable for you can still be economical for a buyer.
Life expectancy. Assessed by independent underwriters from medical records, which requires a HIPAA authorization. Health conditions that developed after the policy was issued generally increase offers, because they shorten the expected premium-paying period.
Across the market, federal research (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, and on average several times cash surrender value — commonly in the 4 to 8 times range. See how much you can get for a life insurance policy.
Surrender, Lapse, or Sell — Run the Comparison Honestly
Lapse pays nothing. If the grace period closes, the coverage ends, and reinstatement typically requires new evidence of insurability plus back premiums — precisely what someone in declining health cannot easily provide. This is the outcome to avoid.
Surrender pays the cash surrender value. On a struggling universal life policy that value is small by definition, since a policy is in trouble precisely because its account value is nearly exhausted. Subtract any surrender charge and any loan and the check can be a few hundred dollars.
Sell converts the policy into a lump sum for qualifying policies. It also ends the premium obligation, which for many families is half the point.
Compare the routes at life settlement vs. surrender. And a scheduling warning: if the policy is already in a grace period, that clock does not pause while a settlement is evaluated. Keep the minimum premium paid until a transaction actually closes.
Documents, Timeline, and the Honest Screen
To start: the policy cover page — insurer, policy number, face amount, issue date. That alone starts a free review.
For a full evaluation: the most recent annual statement showing account value, surrender value, monthly deductions, and any loan; in-force illustrations at current and guaranteed assumptions; a current loan payoff figure; a HIPAA authorization; and medical records.
Sequence: free review in days; documentation over two to four weeks (longer is common at a run-off service center); written offers with gross and net-of-commission figures if a broker is involved; contracts with funds held by an independent escrow agent until the carrier records the ownership change; then a state rescission window. Plan on 60 to 120 days total, and request the current change-of-ownership forms early — Allstate-era paperwork will not be accepted.
The honest screen: policies under $100,000, or held by insureds in good health at younger ages, frequently do not attract offers. Ruling that out costs nothing. See what policies qualify for a life settlement. Settlement proceeds can have income tax consequences and can affect needs-based benefit eligibility including Medicaid — consult your own tax advisor, attorney, or benefits counselor. If you also hold Everlake whole life or term coverage, see selling an Everlake whole life policy or an Everlake term policy. Free review: send the cover page or call (305) 209-7183.
Frequently Asked Questions
Why does my Allstate policy now come from Everlake?
Everlake Life Insurance Company is the former Allstate Life Insurance Company. Allstate agreed to sell it in 2021 to a Blackstone-backed buyer and the company was renamed. Your contract terms, guarantees, and rights are unchanged; only the administering company differs. Confirm the current servicing entity and phone number as of 2026.
Why did my universal life premium suddenly increase so much?
The monthly cost of insurance is age-based and rises steeply in the insured’s 70s and 80s, while many policies from the 1980s through the 2000s were illustrated at 8% to 12% crediting rates and have credited near their guaranteed minimum for years. When the account value can no longer cover the deductions, the insurer requests a much larger premium to prevent lapse.
Does Everlake have to approve the sale of my policy?
No. The policy is your property, the buyer purchases the contract from you, and the carrier records the new owner and beneficiary once the transaction closes. Its permission is not required and it is not a party to your decision. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Everlake or Allstate.
What exactly should I ask the service center for?
An in-force illustration at current assumptions, another at guaranteed assumptions, and a premium solve to age 100. Also ask for a written loan payoff figure and the company’s current change-of-ownership forms. Request everything in writing and keep the file, since a buyer will need the same documents.
Can I lower the cost instead of selling?
Possibly. Ask whether the death benefit can be switched from Option B to Option A, whether the face amount can be reduced, and whether any riders can be dropped. Each lowers monthly charges. Keep in mind that reducing the death benefit below $100,000 will likely take the policy out of the settlement market.
How much could an Everlake universal life policy sell for?
Federal research on the market (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value on average. The drivers are the death benefit, the minimum premium needed to keep the policy in force, and the insured’s life expectancy.
My policy is in its grace period. Can I still sell it?
Possibly, but the grace period does not pause while a settlement is evaluated. Tell the reviewer immediately and keep paying the minimum premium required to hold the policy in force until a transaction closes. Once a policy lapses, reinstatement usually requires new evidence of insurability and back premiums.
How long does a settlement take with a run-off carrier?
Plan on 60 to 120 days from application to funded payment. Documentation typically takes two to four weeks and can run longer at a service center without local agents. Requesting the illustration and current ownership-change forms on day one is the single best way to shorten the timeline.
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Related Reading
- What Is An In Force Illustration
- Life Settlement Vs Surrender
- How Much Can I Get For My Life Insurance Policy
- What Policies Qualify For Life Settlement
- Sell My Everlake Life Whole Life Policy
- Sell My Everlake Life Term 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.