Usually no, and often for a second reason beyond size: Great Western final expense coverage is frequently preneed insurance sold through a funeral home and assigned to that funeral provider, and an irrevocably assigned death benefit is not the owner’s to sell. Even where no assignment exists, burial policies run $5,000 to $25,000 in face amount, far below the roughly $100,000 the life settlement market requires. Carrier permission has never been the obstacle — a policy is property of its owner — but an assignment and a small face amount each independently end the conversation.
Great Western Insurance Company was founded in 1983 and built in Ogden, Utah, around funeral funding: policies sold at the funeral home to pay for a specific, itemized funeral rather than sold by an insurance agent for general purposes. The company was acquired by American Enterprise Group in 2016, and blocks of this kind are commonly serviced under evolving corporate names. Confirm which entity services your contract and what the current product names and face bands are, as of 2026, using the number on your most recent statement.
This page explains preneed mechanics, how assignments work, when a burial policy still has options, and what to do instead of selling. Pine Lake Life Solutions is an educational resource and is not affiliated with Great Western Insurance Company or American Enterprise Group.
In This Article
- Preneed Insurance Is Not an Ordinary Policy
- What an Irrevocable Assignment Actually Prevents
- The Size Floor Applies Too
- Graded Benefits and Premium Structure on Funeral-Funding Policies
- When Plans Change: Moving, Switching Funeral Homes, or Canceling
- Better Moves Than Trying to Sell
- A Free Review and a Straight Answer
- Frequently Asked Questions
Preneed Insurance Is Not an Ordinary Policy
Preneed insurance exists to fund a funeral that has already been planned. The family selects services and merchandise, the funeral home prepares a statement of goods and services with prices, and an insurance policy is issued in an amount sized to that contract. The benefit is then assigned to the funeral provider so that when the insured dies, the claim pays the funeral home directly and the family does not have to front the money.
Two features distinguish it from ordinary life insurance. The first is purpose-binding: the policy is tied to a specific funeral contract with a specific provider. The second is the assignment, which is very often irrevocable. Some preneed products also include a growth or inflation feature intended to keep pace with rising funeral costs, so the benefit may exceed the original contract price over time. None of these features make the policy bad — they make it a prepaid funeral rather than a liquid asset.
What an Irrevocable Assignment Actually Prevents
An assignment transfers rights in the policy to another party. A collateral assignment is limited and can be released; an absolute or irrevocable assignment hands over the benefit permanently, and the owner cannot unilaterally take it back. When a death benefit has been irrevocably assigned to a funeral home, the owner has nothing left to sell — a buyer would be purchasing a claim already committed to somebody else.
If you are unsure what applies to your policy, two calls resolve it. The insurer’s policyholder service department can state what assignments are recorded against the policy number. The funeral home can produce the statement of goods and services and the preneed agreement, which will show whether the arrangement is revocable or irrevocable. Revocability also matters for care planning, because states treat irrevocable funeral arrangements differently from assets an applicant still controls — see how life insurance is counted as a Medicaid asset and how spend-down works, then confirm details with an elder law attorney in your state.
The Size Floor Applies Too
Set the assignment aside for a moment. Even a completely unencumbered burial policy runs into the same wall every small policy hits. Life settlement providers are institutional buyers who must pay for a life expectancy report, medical record retrieval, legal work, and escrow, and then carry the policy — paying premiums and tracking the insured — for years afterward.
Those costs do not scale down with face amount. Federal research on the market (GAO-10-775) found sellers receiving roughly 10% to 35% of face value, so a $12,000 policy tops out at a few thousand dollars, below what the transaction itself costs. That is why the working minimum across the market sits near $100,000 in death benefit, generally with insureds 65 or older. For the broader picture, see our overview of selling final expense coverage and how policy value is actually determined.
| Feature | Preneed / Funeral-Funding Policy | Ordinary Final Expense Policy |
|---|---|---|
| Where it was sold | At the funeral home | By an insurance agent or direct mail |
| Benefit destination | Usually assigned to the funeral provider | Named beneficiary of the owner’s choosing |
| Face amount | Sized to the funeral contract | Commonly $5,000–$25,000 |
| Premium structure | Often single-pay or 3-, 5-, or 10-pay | Often payable to age 100 or 121 |
| Can the owner sell it? | Generally no if irrevocably assigned | Legally yes, but almost always too small |
Graded Benefits and Premium Structure on Funeral-Funding Policies
Preneed and final expense products are issued with limited underwriting, so the benefit structure absorbs the risk. Many contracts carry a graded or modified death benefit for roughly the first two to three years, during which a natural-cause death returns premiums plus a stated interest rate or a defined percentage of face, with accidental death typically covered in full from day one. Others are issued after a short health questionnaire and pay full face immediately.
Premium structure varies more in this channel than in ordinary final expense. Funeral-funding policies are frequently sold as single-premium contracts, paid once at the time the funeral is arranged, or as three-pay, five-pay, or ten-pay designs so that payments end well before life expectancy. Others are payable for life. A single-premium policy has no ongoing affordability problem to solve, which removes most of the reasons people consider selling in the first place. Check your schedule page, and confirm current terms with the servicing company as of 2026.
When Plans Change: Moving, Switching Funeral Homes, or Canceling
The most common real problem with preneed coverage is not liquidity, it is portability. Families move across the country, funeral homes are sold or close, and a funeral planned in one state becomes inconvenient a decade later. Options depend on state law and on the terms of the preneed agreement itself, not on the insurance company alone. Some agreements permit the assignment to be redirected to a different funeral provider; some do not. Some states regulate preneed sales through the insurance department, others through a funeral board or a dedicated preneed statute, and the rules on cancellation, refunds, and portability differ substantially.
Practical sequence: read the preneed agreement, call the funeral home, then call the insurer, then — if the answers conflict or a refund is at stake — contact your state’s insurance department or funeral regulator. Do not sign anything canceling coverage until you know what the money converts to, because a canceled preneed contract may return far less than the coverage was worth.
Better Moves Than Trying to Sell
If the policy is unassigned and the premium is the problem, ask the carrier about reduced paid-up insurance, which uses accumulated value to buy a smaller fully paid death benefit and ends premiums permanently, or about reducing the face amount to lower the payment. If the insured is seriously ill, check whether the contract includes an accelerated death benefit rider that can release part of the face amount early — this explains how those riders operate. Surrender pays whatever cash value exists and ends coverage, and on funeral-funding contracts surrender terms can be restrictive; ask before assuming.
Where the insured has a short, medically documented life expectancy, a viatical settlement uses different assumptions and occasionally considers smaller policies — see the viatical overview, selling after a terminal diagnosis, and what hospice enrollment changes. Compare exits generally in lapse versus surrender versus settlement.
A Free Review and a Straight Answer
If you want the question closed rather than researched, send the policy cover page — issuing company, policy number, insured, issue date, and face amount — and Pine Lake Life Solutions will provide a free, no-obligation read on whether the contract is in settlement territory. For funeral-funding coverage the expected answer is that it is not, either because of size or because the benefit is assigned, and saying so plainly is the point of the review.
Nothing here is legal, tax, or investment advice, and nothing on this page should be read as a claim that Pine Lake is licensed in any particular state. Where a policy does qualify, the process typically runs 60 to 120 days from application to funded payment, with proceeds held in independent escrow until the insurer records the ownership change. Read the red flags to watch for before speaking with anyone, then call (305) 209-7183.
Frequently Asked Questions
Can I sell a Great Western preneed or burial policy?
Generally no. If the death benefit is irrevocably assigned to a funeral home, the owner no longer controls the value and has nothing to transfer. Even without an assignment, burial-size face amounts fall well below the roughly $100,000 the settlement market requires.
What is preneed insurance?
It is life insurance sold through a funeral home to fund a specific, itemized funeral contract, with the benefit typically assigned to the funeral provider so the claim pays them directly. It functions as a prepaid funeral rather than as a liquid asset the owner can redirect.
How do I find out whether my policy is assigned?
Call the insurer’s policyholder service department and ask what assignments are recorded against your policy number, then ask the funeral home for the preneed agreement and statement of goods and services. Those documents show whether the arrangement is revocable or irrevocable.
I moved out of state. Can the funeral home be changed?
Sometimes, depending on state law and the terms of the preneed agreement. Some assignments can be redirected to a different provider and some cannot. Read the agreement, then contact the funeral home, the insurer, and if necessary your state’s insurance department or funeral regulator.
Does the carrier have to approve a sale?
No. A life insurance policy is property of its owner and may be transferred without insurer consent; the carrier’s role is to record the ownership change afterward. Assignment status, not carrier approval, is the barrier on funeral-funding policies.
Are premiums on these policies payable for life?
Often not. Funeral-funding contracts are frequently sold as single-premium or limited-pay designs such as three-pay, five-pay, or ten-pay, so payments end well before life expectancy. Check the schedule page of your own contract and confirm terms with the servicing company as of 2026.
What if the insured is terminally ill?
That changes the analysis for unassigned policies. Viatical buyers work from short, documented life expectancies and sometimes consider smaller face amounts, and tax treatment can differ when an insured is certified terminally ill. Confirm any tax question with your own adviser.
What do I send to get a free review?
The policy cover page is enough — it shows the issuing company, policy number, insured, issue date, and face amount. Pine Lake Life Solutions provides a free, no-obligation educational read on whether a settlement is realistic. Call (305) 209-7183 with questions about a specific contract.
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Related Reading
- Can I Sell A Final Expense Policy
- Life Insurance Counts Medicaid Asset
- Nursing Home Medicaid Spend Down
- How Much Is My Policy Worth
- What Is An Accelerated Death Benefit Rider
- What Is A Viatical Settlement
- Terminal Illness Sell Policy
- Hospice Enrollment Viatical
- Lapse Vs Surrender Vs Settlement
- Life Settlement Scams Red Flags
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.