Yes – a Fidelity & Guaranty Life universal life policy can be sold in a life settlement, without needing F&G’s approval, because the buyer purchases the contract from you and the carrier only records the ownership change. Universal life is the type the secondary market buys most often, for a simple reason: it is permanent, its premiums are flexible, and it is frequently issued at death benefits well above the $100,000 that buyers generally require.
It is also the type most likely to surprise its owner late in life. Universal life takes monthly charges out of the account value, and those charges rise with the insured’s age. A policy that looked self-sustaining at 65 can start eating itself at 80, and the first hint many families get is a carrier notice warning that more premium is needed to prevent a lapse.
Below: F&G’s corporate background, how the in-force illustration determines everything, how buyers actually price a UL contract, and when surrendering or reducing the death benefit is the better move. Pine Lake Life Solutions is not affiliated with F&G.
In This Article
- F&G Today, and the Name Confusion Worth Clearing Up
- Cost of Insurance Is the Engine of the Problem
- The In-Force Illustration Is the Whole Ballgame
- How a Buyer Prices Your F&G Universal Life Policy
- Surrender, Reduce, or Sell
- Loans, Documents, and the Closing Sequence
- Who Qualifies, and What Should Make You Walk Away
- Frequently Asked Questions
F&G Today, and the Name Confusion Worth Clearing Up
Fidelity & Guaranty Life operates today under the F&G Annuities & Life banner from Des Moines, Iowa, with company origins tied to a Fidelity and Guaranty life operation historically associated with Baltimore. It is not related to Fidelity Investments, a point worth settling early because the mix-up sends people to the wrong service center. Verify the exact issuing entity printed on your contract.
Ownership has moved several times: Old Mutual, then HRG Group, then acquisition by Fidelity National Financial in 2020, followed by a New York Stock Exchange listing of a minority stake with the parent retaining majority control. An unusual pedigree – a life insurer under a title insurance parent – but it changes nothing about your policy. Verify the current structure and A.M. Best rating with the company directly in 2026.
Cost of Insurance Is the Engine of the Problem
In a universal life policy, the carrier deducts monthly charges for the cost of insurance and policy expenses from your account value. The interest credited to the account is meant to offset them. As the insured ages, the cost of insurance rises – sharply in the later years – and if premiums plus credited interest no longer keep pace, the account value drains toward zero and the policy lapses.
A lapse is the worst outcome available. Decades of premiums produce nothing, no death benefit is paid, and no cash comes back. Every other path – surrender, reduced coverage, or a settlement – beats it. This is why acting a year early is worth far more than acting a month late.
The In-Force Illustration Is the Whole Ballgame
Request an in-force illustration from F&G’s service center run at current charges and current crediting rates, showing the premium required to carry the policy to ages 90, 95, and 100. Ask for it in writing, and expect it to take a couple of weeks. Do not settle for the illustration you were shown when you bought the policy; that document described a plan, not a promise.
Two people can hold identical $400,000 UL policies and be in opposite positions. One needs $6,000 a year to reach age 95; the other needs $22,000. The first is an attractive asset to a buyer; the second may not draw a bid at all. Until you have that illustration, no one – including any buyer – actually knows what your policy is.
| Policy Situation (hypothetical) | Death Benefit | Projected Annual Premium | Likely Market Interest |
|---|---|---|---|
| Age 83, health declined since issue | $750,000 | $16,000 | Strong – large benefit, shorter expected horizon |
| Age 79, moderate health decline | $250,000 | $9,000 | Possible – depends on premium load |
| Age 72, excellent health | $750,000 | $16,000 | Weak – long expected premium period |
| Age 84, policy near lapse, heavy funding needed | $300,000 | $34,000 | Weak – premiums consume the value |
| Any age, small policy | $75,000 | Any | None – below typical buyer minimums |
How a Buyer Prices Your F&G Universal Life Policy
A buyer models the future: how many years of premium are likely, at what cost, before the death benefit is paid. Independent medical underwriters produce a life expectancy assessment from your records; the in-force illustration supplies the premium path. The offer is what is left after the buyer’s required return.
Hypothetical illustration only: a $750,000 UL policy on an 83-year-old with significant health decline, $14,000 of net cash surrender value, and projected funding of $16,000 a year might see an offer near $150,000 – about 20% of face and more than ten times surrender value. A different $750,000 policy on a healthy 72-year-old with the same premiums might draw no offer whatsoever. Market-wide, offers have generally fallen between roughly 10% and 35% of face.
Surrender, Reduce, or Sell
Surrender pays the account value minus any surrender charge and loan balance, and ends the coverage. It is the right answer when no buyer is interested, when the death benefit is under about $100,000, or when a modest cash value makes the settlement process not worth the effort – a common conclusion in a Medicaid spend-down where values under roughly $15,000 are involved.
Reducing the death benefit is the underused middle path: a smaller face amount means smaller insurance charges, which can stabilize a policy that is otherwise sliding toward lapse while keeping real coverage in place. And if the insured has a terminal diagnosis, look at the contract’s accelerated death benefit rider before anything else – it typically pays faster, costs nothing to arrange, and leaves fewer moving parts.
Loans, Documents, and the Closing Sequence
An outstanding policy loan does not block a sale, but it does shrink the check. Loans are typically paid off from the proceeds at closing, so get a current payoff quote including accrued interest before you evaluate an offer. Alongside it, gather the cover page, the most recent annual statement, and the current in-force illustration.
The closing itself is a change of ownership – often an absolute assignment – plus a beneficiary change recorded by F&G on its own forms. Confirm notarization requirements and recording times with the service center. Expect the overall process to run roughly 60 to 120 days, and check your state’s rescission period, the window in which a seller may return the money and cancel the sale after funding.
Who Qualifies, and What Should Make You Walk Away
Buyers generally want an insured in their senior years, a death benefit of $100,000 or more, a policy past its contestability period, and health that has declined since issue. If your policy is inexpensive to maintain and the coverage is still wanted, the best financial decision is often to keep it – and you should expect an honest reviewer to say so.
Walk away from anyone who names a firm price before medical records and an in-force illustration exist, charges an upfront fee to look at your policy, pushes you to sign immediately, or suggests leaving your family or advisors out of it. Bring in a CPA on the tax treatment of any proceeds and an elder law attorney if benefits eligibility is in play. Nothing here is legal, tax, or investment advice.
Frequently Asked Questions
Can I sell an F&G universal life policy without the company’s consent?
Yes. The policy is your property and the buyer purchases the contract from you. F&G records the new owner and beneficiary on its own forms after closing; it does not approve or block the sale.
Why do universal life policies lapse so often in later years?
Monthly cost-of-insurance charges are deducted from the account value and rise with the insured’s age. If premiums and credited interest no longer keep pace, the account value drains and the coverage ends. A carrier lapse warning notice is often the first sign families see.
What exactly should I request from F&G?
Ask the policyholder service center in writing for an in-force illustration at current charges showing the premium required to carry the policy to ages 90, 95, and 100. Also request the current account value, the net cash surrender value, and any loan payoff amount.
Is F&G related to Fidelity Investments?
No. They are separate, unrelated companies. F&G is a life insurance and annuity company operating from Des Moines, Iowa, whose parent since 2020 has been Fidelity National Financial, a title insurance organization. Verify current details with the company.
How much do universal life policies sell for?
Market-wide, life settlement proceeds have generally landed between about 10% and 35% of the death benefit, and the GAO’s study (GAO-10-775) found sellers received roughly four to eight times cash surrender value. Age, health, and projected premiums drive the number, and many policies receive no offer.
What if my policy has a loan against it?
That usually does not prevent a sale. The loan is typically paid off at closing out of the proceeds, so your net amount is lower. Request a payoff quote with accrued interest from F&G first.
Is there an option between selling and surrendering?
Yes – reducing the death benefit. A smaller face amount lowers the insurance charges and can stabilize a policy heading toward lapse while keeping some coverage in force. A licensed insurance professional can price that option for you.
Does Pine Lake work for F&G?
No. Pine Lake Life Solutions is independent and has no affiliation with F&G. We review policies with $100,000 or more of death benefit at no cost – send your policy cover page or call (305) 209-7183.
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 Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- How It Works Policy Options
- What Is A Policy Loan
- Education Center
- Sell My Fidelity Guaranty 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.