July 31, 2026
5:10 pm

Can I Sell My Everlake Life Variable Universal Life (VUL) Policy? (2026 Guide)

Yes – an Everlake Life variable universal life policy can be sold in a life settlement, because you own the contract and a buyer purchases it from you; the carrier’s consent is not required and the carrier does not participate in the decision. Qualification depends on you and the policy, not on the insurance company: buyers generally look for a senior insured and a death benefit of $100,000 or more.

Everlake Life Insurance Company is the former Allstate Life Insurance Company, which Allstate agreed in 2021 to sell to Everlake US Holdings, an entity backed by Blackstone. The block was renamed, so a policy bought from an Allstate agent in the 1990s or 2000s may now be serviced under a name the owner has never seen. Confirm the current servicing entity, ratings and service phone number directly with the company as of 2026.

VUL adds its own complication, and it is worth understanding before you compare offers: the cash value in a VUL sits in investment subaccounts, so the surrender value you were quoted last month is not the surrender value this month. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Everlake or Allstate.

In This Article

Your Policy Moved from Allstate to Everlake – Here’s What That Means
VUL in Plain English: Subaccounts, Not a Savings Account
The Charges That Eat a VUL: M&E, COI, and Fund Fees
Why Buyers Look Past Your Subaccount Balance
Reading Your VUL Statement Before You Decide
Timeline: From Cover Page to Funded Payment
Alternatives to Selling a VUL
Taxes and Advice: Get a Professional Involved
Frequently Asked Questions

Can I Sell My Everlake Life Variable Universal Life (VUL) Policy? (2026 Guide)

Your Policy Moved from Allstate to Everlake – Here’s What That Means

When a life block is sold, the buyer takes on the obligations of the contracts. Allstate’s 2021 agreement to sell its life company to Everlake US Holdings did exactly that, and the renamed Everlake Life Insurance Company stepped into the servicing role.

For you, the practical effects are all administrative. New phone number, new website, new forms, new claim address – and typically no assigned agent, because the block is closed to new sales. Your face amount, subaccount lineup, rider set and beneficiary designations came across unchanged. When you need a document, call the number printed on your latest premium notice rather than an old one.

VUL in Plain English: Subaccounts, Not a Savings Account

A variable universal life policy has two moving parts. The insurance part provides the death benefit. The investment part holds your cash value in separate-account subaccounts that work much like mutual funds – stock funds, bond funds, money market options.

Those subaccounts sit in the insurer’s separate account, which is legally segregated from the general account. That is why the value goes up and down with the market rather than following a guaranteed schedule. It is also why a VUL statement can look dramatically different from one year to the next while the death benefit sits still.

The Charges That Eat a VUL: M&E, COI, and Fund Fees

Three layers of cost come out of a VUL, and older policies feel all three:

Mortality and expense risk (M&E) charges – an ongoing percentage charge against separate-account assets.
Cost of insurance (COI) – the monthly charge for the death benefit, which rises as the insured ages. This is the big one in later years.
Fund-level expenses – the operating costs of each subaccount, plus any administrative and rider charges.

When markets are strong, growth masks the charges. When markets are flat and the insured is in their seventies or eighties, rising COI can consume account value faster than it grows, which is how a policy that looked healthy for decades suddenly needs much larger premiums to survive. Ask for an in-force illustration to see that trajectory in writing.

Why Buyers Look Past Your Subaccount Balance

A settlement buyer is not purchasing your fund balance. They are purchasing a future death benefit and taking on the obligation to keep paying premiums until it pays. So the questions that drive value are: how large is the death benefit, what is the minimum premium that keeps the contract alive, and what is the insured’s life expectancy?

The subaccount balance matters only as a lever – a well-funded VUL can carry itself for a while on its own account value, which lowers the buyer’s future premium outlay. But a rich balance also raises the surrender value you could take instead, which sets the floor an offer has to beat. See how cash surrender value works and how offers are estimated.

Statement Line	What It Means	Why a Buyer Cares
Face amount / death benefit	What the policy pays at death	The asset being purchased; $100k+ to be marketable
Account value	Subaccount balance before exit charges	Fuel that can carry premiums for a while
Cash surrender value	What Everlake would pay you today	The floor an offer must beat
Cost of insurance	Monthly charge for the death benefit	Rises with age; drives future premium need
Outstanding loan	Borrowed amount plus interest	Reduces death benefit and net proceeds

Why Buyers Look Past Your Subaccount Balance

Reading Your VUL Statement Before You Decide

Pull the most recent annual statement and locate four things:

The face amount and whether the death benefit option is level or increasing.
The account value versus the cash surrender value – the difference is any remaining surrender charge.
Any outstanding policy loan, which reduces both the death benefit and your net proceeds at closing.
The planned premium versus what you are actually paying.

Then request an in-force illustration. For a VUL, ask for it at more than one assumed rate of return – a guaranteed or 0% assumption and a modest assumption – so you can see how long the policy survives if the market does not cooperate.

Timeline: From Cover Page to Funded Payment

The path is the same for every carrier. You send the policy cover page for a free review. If the policy looks like a candidate, the next stage is documentation: the in-force illustration from the servicing company, a HIPAA authorization, medical records and independent life-expectancy estimates. Offers follow, then contracts, then an independent escrow account holds your funds while the servicing company records the change of ownership and beneficiary. Escrow releases when the change is confirmed.

Budget 60 to 120 days. Never transfer ownership against a promise to pay later, and expect a rescission window after closing under most states’ rules. Questions about your specific timeline: (305) 209-7183.

Alternatives to Selling a VUL

Before selling, price the alternatives honestly:

Reallocate and reduce. Some owners keep the policy but shift subaccounts and lower the death benefit to make the premium sustainable.
1035 exchange. Moving cash value into a different policy or an annuity can be done without an immediate tax event, but the new contract has its own costs and underwriting.
Surrender. Fast, but you receive only the surrender value, and gains above basis are generally taxable.
Life settlement. A lump sum that for qualifying policies typically exceeds surrender value – published GAO figures (GAO-10-775) show roughly 4 to 8 times surrender value and about 10% to 35% of face value.
Retained death benefit. Some structures end the premium while leaving part of the death benefit to your family – see the policy options.

Taxes and Advice: Get a Professional Involved

Settlement proceeds are generally taxed in layers – a portion treated as return of basis, a portion as ordinary income, and a portion as capital gain – and the exact treatment depends on your basis, any loans and your circumstances. A VUL with years of subaccount gains and a policy loan is exactly the situation where guessing is expensive.

This page describes how the rules generally work. It is not legal, tax or investment advice and it is not an offer to purchase a policy. Bring your CPA or attorney into the conversation before you sign anything.

Frequently Asked Questions

Can I sell a VUL policy even though the cash value moves around?

Yes. Buyers purchase the death benefit and take over the premiums, so a fluctuating subaccount balance does not disqualify the policy. It does mean any figure you were quoted is a snapshot. Expect a buyer to work from an in-force illustration rather than a single month’s balance.

Is Everlake the same company as Allstate?

Everlake Life Insurance Company is the former Allstate Life Insurance Company. Allstate agreed in 2021 to sell that business to Everlake US Holdings, backed by Blackstone, and it was renamed. Your contract carried over unchanged; only the servicing name and contacts changed. Confirm current details with the company as of 2026.

My VUL suddenly needs a much bigger premium. Why?

That is usually rising cost of insurance meeting a flat or falling subaccount balance. As the insured ages, the monthly charge for the death benefit climbs, and if investment growth does not keep pace the account value drains. An in-force illustration at a conservative assumed return will show how long the policy lasts.

Does a policy loan affect what I receive?

Yes. An outstanding loan plus accrued interest is generally settled out of the transaction, so it reduces your net proceeds and it reduces the death benefit a buyer is acquiring. Disclose any loan early so the numbers you are shown are realistic.

Will I owe tax on the money?

Usually part of it. Proceeds are commonly divided into return of basis, ordinary income and capital gain, depending on your cost basis, gains and loans. This page is not tax advice – have your CPA run your specific numbers before you accept an offer.

What is the minimum death benefit you can work with?

Generally $100,000 or more. Below that, the fixed costs of medical underwriting, life-expectancy reports, legal work and escrow usually exceed the value of the policy to a buyer, so offers do not materialize.

How do I start?

Send the policy cover page for a free, no-obligation review, or call (305) 209-7183. The cover page shows the insurer, policy number, face amount and issue date – enough to tell you whether a full review makes sense.

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.

Call (305) 209-7183 · Request a review online →

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