Yes — a Great-West Life & Annuity universal life policy can be sold in a life settlement, because the policy belongs to you and the buyer purchases the contract; the insurer’s permission is not needed. Universal life is, in fact, the single most common policy type in the secondary market — and the reason is usually the letter that brought you here.
If you have received a notice saying your premium must increase, or that the policy will lapse in a few years unless you pay more, you are experiencing the defining problem of older universal life. Policies illustrated decades ago at high interest rates are now crediting close to their contractual minimums, while the internal cost of insurance climbs with the insured’s age. The projection that once said “paid up for life” now says something very different.
Two things complicate the picture for Great-West owners specifically. The company sold its individual life and annuity business to Protective Life in 2019 and rebranded its retirement business as Empower, so the servicing company, the statement, and the phone number have all changed. This guide covers both: how to find out where your policy really stands, and how universal life is valued when it is sold. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Great-West Life & Annuity, Empower, or Protective Life. Education only — not legal, tax, or investment advice.
In This Article
- Why Universal Life Is the Most Common Policy Sold
- The In-Force Illustration Is the Whole Ballgame
- Finding Out Who Actually Services Your Policy Now
- What a Buyer Is Actually Valuing
- Options If the Premium Notice Has Already Arrived
- Documents, Process, and Realistic Timing
- Who Does Not Qualify
- If You Hold a Different Great-West Policy Type
- Frequently Asked Questions
Why Universal Life Is the Most Common Policy Sold
Universal life separates the policy into moving parts: you pay premiums into an account value, the insurer credits interest, and every month it deducts a cost of insurance charge plus expenses. As long as the account value covers those deductions, the policy stays in force. When it cannot, the policy lapses — often decades before anyone expected.
Two forces squeeze that account value on older contracts. First, crediting rates. Policies sold in the 1980s through the early 2000s were commonly illustrated at rates far above what has actually been credited in the years since, and many have spent long stretches at or near their guaranteed minimum rate. Second, cost of insurance. It is priced by age and rises steeply once the insured passes the mid-seventies, so the monthly deduction that was trivial at 55 becomes punishing at 80.
Put those together and you get the classic scenario: a healthy account value in year 15, a shrinking one in year 25, and a demand for a much larger premium in year 30 — right when the owner is on a fixed income. That mismatch is exactly what creates the secondary market. A policy the original owner can no longer afford to carry can still be worth real money to someone who can.
The In-Force Illustration Is the Whole Ballgame
You cannot evaluate a universal life policy from the annual statement alone. The statement tells you where you are; an in-force illustration tells you where you are heading. Request it from the servicing company in writing, and be specific about what you want:
- An illustration at current assumptions — current crediting rate and current cost-of-insurance charges — showing the projected account value each year and the year the policy would lapse if you keep paying what you pay now.
- An illustration at guaranteed assumptions — minimum crediting rate and maximum charges the contract permits. This is the worst case the insurer is contractually allowed to impose, and it is often startling.
- The premium required to carry the policy to a given age, such as age 95 or 100, at both sets of assumptions.
Those three outputs tell you whether you are holding an asset or an expense. They are also the exact documents a buyer will price from. Our guide to what an in-force illustration is walks through how to read one line by line.
Finding Out Who Actually Services Your Policy Now
Great-West Life & Annuity Insurance Company, long based in the Denver area and part of Canada’s Great-West Lifeco group, exited individual life insurance in 2019 by selling that block to Protective Life through a reinsurance transaction. What remained — the retirement and workplace savings business — carried on under the Empower brand, and the legal entity was later renamed accordingly. Confirm the exact servicing entity, mailing address, and service phone number for your policy as of 2026 before you send anything.
The practical hazard is wasted weeks. People mail an illustration request to an address printed inside a 1994 policy, hear nothing, and assume the company vanished. Start instead with the most recent premium notice or annual statement, which reflects the current administrator. If nothing recent exists, your state insurance department’s consumer assistance line can identify the current servicer of a transferred block.
A transferred policy keeps its contractual guarantees. The reinsurance arrangement and the corporate rename did not alter your guaranteed minimum crediting rate, your maximum cost-of-insurance table, your death benefit, or your right to transfer ownership. It is also reasonable to check the current A.M. Best financial-strength rating of the company now standing behind the block — verify it rather than relying on what you remember.
What a Buyer Is Actually Valuing
A universal life buyer is not paying for your account value. They are buying a future death benefit and taking on the obligation to keep the policy alive until then. The pricing inputs are roughly:
- Death benefit. The size of the eventual payment.
- Life expectancy. Estimated from medical records by independent underwriters. Shorter estimates mean fewer premium years and a higher offer.
- Minimum premium to keep the policy in force. This is where universal life shines or fails. A policy that can be carried on modest premiums is far more attractive than one bleeding cash every month.
- Account value and any surrender charge. Relevant mostly as a floor and as a source of funds the buyer inherits.
- Loans. Any outstanding loan and interest are settled out of the deal, reducing net proceeds.
Because the account value on a struggling UL policy is often small, the surrender comparison is frequently unimpressive — which is precisely why a settlement can look so different. The GAO’s market study (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, on the order of 4 to 8 times surrender value. See how much you can get for a policy for the general framework.
| Illustration Scenario | What It Assumes | What It Tells You |
|---|---|---|
| Current assumptions, current premium | Today’s crediting rate and cost-of-insurance charges | The year the policy lapses if nothing changes |
| Guaranteed assumptions, current premium | Minimum crediting rate, maximum permitted charges | The worst case the contract allows — often much earlier lapse |
| Premium to carry to age 95, current | Today’s rates, solve for premium | What keeping the policy realistically costs |
| Premium to carry to age 95, guaranteed | Contract minimums and maximums | The ceiling on future premium demands |
| Minimum premium to avoid lapse next year | Short-horizon funding only | What buys you time while a review is underway |
Options If the Premium Notice Has Already Arrived
When the carrier says pay more or lose the policy, there are five honest responses, and it is worth naming all of them:
- Pay the higher premium. Correct if the coverage is still needed and the money is there.
- Reduce the death benefit. A smaller face amount lowers the cost of insurance and can stabilize the policy. Careful: reducing below $100,000 typically removes it from settlement consideration.
- Surrender it. Take whatever net cash surrender value remains. On a late-stage UL policy that is often a disappointingly small number — see how cash surrender value works.
- Let it lapse. The most common outcome, and the one that returns nothing at all.
- Sell it. Transfer the contract for a lump sum, or explore a structure that ends your premiums while retaining part of the death benefit.
The mistake to avoid is doing nothing until the grace period runs out. A lapsed policy cannot be sold. If the notice gives you 60 days, start the review now — a free review needs only the policy cover page.
Documents, Process, and Realistic Timing
Start with the cover page — insurer, policy number, face amount, issue date. That alone determines whether the policy is worth a deeper look. If it is, gather the most recent annual statement and the in-force illustrations described above, and expect to sign a HIPAA authorization so a life-expectancy estimate can be prepared from medical records. Make sure any release you sign is specific and revocable.
From there the sequence is documentation, offer, contracts and escrow, ownership change, and funding. Plan on roughly 60 to 120 days end to end. Insist that funds sit with an independent escrow agent until the servicing company confirms the ownership transfer, get any offer in writing, and ask to see both the gross figure and what actually reaches you after any intermediary compensation. Most states also provide a rescission window after closing — confirm yours.
To begin, send the policy cover page for a free review or call (305) 209-7183.
Who Does Not Qualify
Not every universal life policy is sellable, and hearing that early saves months. Death benefits under about $100,000 are usually too small for the market to price economically. A relatively young, healthy insured with a long projected premium runway is a poor fit, because the buyer would carry the policy for decades. Policies already in grace or lapsed cannot be sold at all. Heavy loan balances can consume most of an offer.
If a policy does not qualify, reducing the face amount to a level the account value can sustain, or converting to a paid-up option if the contract offers one, may keep some coverage in place at no further cost. Our guide to what policies qualify covers the full screen, and is a life settlement worth it works through the decision itself.
If You Hold a Different Great-West Policy Type
Universal life comes in variations that behave very differently at sale time. A guaranteed universal life contract is priced on its no-lapse guarantee rather than its account value. A variable universal life contract holds its cash value in market subaccounts that move month to month. Term has no cash value at all and usually depends on whether a conversion privilege is still open.
See our companion guides on selling a Great-West guaranteed universal life policy, a Great-West variable universal life policy, a Great-West whole life policy, or a Great-West term policy.
Frequently Asked Questions
Why did my Great-West universal life premium suddenly go up?
Universal life deducts a rising cost-of-insurance charge from the account value each month, and credited interest on older policies has generally run far below what was originally illustrated. When the account value can no longer cover the deductions, the insurer asks for more premium to keep the policy in force. It is a structural feature of the product, not a penalty.
Great-West sold its life business. Is my policy still valid?
Yes. The individual life and annuity block went to Protective Life in 2019 through a reinsurance transaction, and a transferred policy keeps its contractual guarantees. Your death benefit, guaranteed minimum crediting rate, and maximum cost-of-insurance table are unchanged. Only the company servicing the policy is different — confirm the current servicer as of 2026.
How do I get an in-force illustration?
Call the service number on your most recent premium notice or annual statement and request illustrations at both current and guaranteed assumptions, plus the premium required to carry the policy to age 95 or 100. Ask for it in writing. Carriers typically take a few weeks, so request it early.
Can I sell a policy that is already in the grace period?
It depends on how much time is left, and it is urgent. A lapsed policy cannot be sold at all, so the practical answer is to pay whatever minimum keeps it in force while a review is underway. Send the cover page immediately rather than waiting for the grace period to expire.
Does the insurer have to approve the sale?
No. A life insurance policy is your property and the buyer purchases the contract from you. The servicing company simply records the ownership and beneficiary change once the transaction closes. It has no approval right over the sale itself.
How much might I receive?
The federal GAO study found sellers typically received roughly 10% to 35% of face value, on the order of 4 to 8 times cash surrender value. Since a struggling universal life policy often has little surrender value left, the comparison can be dramatic. Your actual offer depends on death benefit, health, and the premium required to keep the policy alive.
Should I reduce my death benefit to make the premium affordable?
It is a legitimate option, because a smaller face amount lowers the monthly cost-of-insurance charge. Be aware that reducing the death benefit below about $100,000 generally takes the policy out of settlement consideration. Explore the sale question before you shrink the policy, not after.
What do I need to send to find out if my policy qualifies?
Only the policy cover page — the first page showing the insurer, policy number, face amount, and issue date. That is enough for a free, no-obligation review, usually answered within days. You can also 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 Is An In Force Illustration
- Cash Surrender Value Life Insurance
- How Much Can I Get For My Life Insurance Policy
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- Sell My Great West Life 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.