Yes — an Investors Heritage guaranteed universal life policy can be sold, because any carrier’s policy can be sold when the policyholder and the policy qualify; the buyer purchases the contract from you and the carrier’s permission is not needed.
GUL deserves its own conversation because of one blunt fact: surrendering a GUL policy usually pays you almost nothing. The product is engineered as pure death benefit. You get a no-lapse guarantee that keeps coverage in force to a stated age at a lower premium than whole life, and in exchange the policy builds little or no cash value. If you stop paying, you walk away with nearly zero. That makes a life settlement, for many GUL owners, the only exit that returns real money.
It also makes one warning urgent: the guarantee is conditional, and a single late or short premium can permanently damage it. This guide covers how buyers price GUL, how the catch-up and reinstatement rules work, and what to gather. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Investors Heritage. Education only.
In This Article
The Guarantee Is a Promise With Conditions
Read the no-lapse provision in your contract and you will find language along these lines: the death benefit is guaranteed to remain in force provided the required premiums are paid in the required amounts on or before the required dates. Every word in that clause is load-bearing.
Pay a month late, pay $40 short, or skip a payment during a hospital stay, and the guarantee can be weakened or lost — even though the policy itself is still technically in force and still billing you. Nothing dramatic happens on the statement. The protection you were paying for is simply diminished.
When the guarantee fails, the policy reverts to ordinary universal life mechanics. Thin cash value must absorb monthly cost-of-insurance charges that rise every year with the insured’s age. From there the arithmetic is unforgiving, and an unguaranteed GUL can lapse a decade earlier than the owner expects.
Catch-Up and Reinstatement: What You Can Still Fix
Most GUL contracts include a catch-up provision. If you missed or underpaid, you can generally restore the guarantee by paying the shortfall plus interest — but only within a limited window, often measured in months rather than years. Some contracts allow catch-up only through the next policy anniversary.
If the policy has already lapsed entirely, reinstatement may still be possible. Typical conditions include applying within a set number of years, providing evidence of insurability, and paying back premiums with interest. Reinstatement usually restores the contract, but whether it restores the no-lapse guarantee to its original terms is a separate question you must ask specifically.
Three questions to put to the servicing company in writing, as of 2026: Is the no-lapse guarantee currently intact on my policy? If not, what exact amount would restore it, and by what date? If reinstated, would the guarantee run to the original age? Do not accept a verbal answer.
How Buyers Price a GUL Contract
Because there is no meaningful cash value to analyze, GUL pricing rests on different pillars than whole life or traditional UL:
- Guarantee period. To age 90, 95, 100, or 121 — and whether it is intact today.
- Required premium. The exact dollar amount and payment schedule needed to hold the guarantee for the remaining years. This is a buyer’s largest ongoing cost.
- Face amount. The asset itself.
- Life expectancy. Estimated from the insured’s medical records.
A GUL with a long, intact guarantee and a modest required premium is among the cleaner assets in the secondary market — there are no crediting-rate assumptions to argue about, because the guarantee already fixes the cost of carrying the policy.
Standard market ranges apply: sellers have typically received roughly 10% to 35% of face value. The GAO study’s 4-to-8-times-surrender-value figure (GAO-10-775) is a poor yardstick here, since GUL surrender value is often near zero — which is exactly the point. See settlement vs. surrender and how surrender value works.
| Guarantee Status | What It Means | Effect on a Sale |
|---|---|---|
| Intact, all premiums paid on time | Coverage guaranteed to the stated age | Strongest position — cleanest pricing for buyers |
| Shortfall within the catch-up window | Restorable by paying the gap plus interest | Fix it first, then seek offers |
| Guarantee lost, policy still in force | Reverts to ordinary UL mechanics | Still potentially sellable, but priced lower |
| Policy lapsed | Coverage ended | Ask about reinstatement; nothing to sell until restored |
| Face amount under $100,000 | Below market minimums | Not a realistic settlement candidate |
Investors Heritage: Background and a Candid Caveat
Investors Heritage Life Insurance Company is headquartered in Frankfort, Kentucky and was acquired by Aquarian Holdings in 2018. As of 2026, confirm current ownership, the servicing address, and the A.M. Best rating with the carrier or directly through A.M. Best.
The company’s historic business is pre-need funeral and final-expense coverage distributed through funeral homes. That matters here for one reason: those policies are small, and pre-need contracts are typically assigned to the funeral provider. An assigned pre-need policy generally cannot be sold — the benefit is already directed to a third party, so there is nothing left to transfer. Small final-expense policies of $10,000 or $25,000 will not attract offers either; the cost of underwriting and closing a transaction exceeds what any buyer could pay.
Before assuming your contract is a settlement candidate, check the face amount on the cover page and look for the word “assignment” or a named funeral home anywhere in your paperwork. Pine Lake works with policies of $100,000 or more in death benefit.
Documents to Gather
Step one is one page: the policy cover page, showing issuing company, policy number, face amount, and issue date. That is all that is needed for a free, no-obligation review.
If the policy is a candidate:
- Most recent annual statement — face amount, accumulated value, surrender value, any loan.
- Written confirmation of guarantee status from the servicing company, including any premium shortfall on record.
- An in-force illustration showing how long the guarantee runs at the current premium, and what happens if premiums stop.
- Rider details — riders carry their own charges and can affect the guarantee.
A HIPAA authorization follows so life expectancy can be estimated from medical records. Keep it specific and revocable.
Process and Timing
Realistic schedule, start to funded payment: 60 to 120 days.
- Free review from the cover page — a few days.
- Documentation — 2 to 4 weeks for illustrations, guarantee confirmation, medical records, and life-expectancy reports.
- Offers — always in writing. If a broker is involved, ask for gross and net-of-commission numbers.
- Contracts and escrow — funds held by an independent escrow agent. Never transfer ownership against a promise of later payment.
- Ownership change and funding — the carrier records the new owner; escrow releases your money. Most states then provide a rescission window.
Keep every premium current and on time throughout. On a GUL this is not routine advice — a single missed payment during the process can damage the guarantee the buyer is paying for and can reduce or kill an offer outright.
Is Selling the Right Call?
The case for selling a GUL is strongest when the coverage is genuinely no longer needed, the premium has become a strain, and the alternative is lapsing for nothing. Because surrender returns so little, the usual “settlement versus surrender” comparison collapses into a simpler one: a lump sum now, or nothing later.
The case against is equally clear. If heirs still depend on the death benefit and the premium is comfortable, a GUL is doing exactly what it was designed to do and should be kept. Some contracts also allow you to reduce the face amount, lowering the premium while keeping guaranteed coverage — worth asking about before you decide anything.
Work through whether a settlement is worth it and how the policy options work. To find out where your policy stands, send the cover page for a free review or call (305) 209-7183.
Frequently Asked Questions
Do I need Investors Heritage’s approval to sell my GUL policy?
No. The policy is your property and the buyer purchases the contract directly from you. The carrier records the new owner and beneficiary after the sale closes but plays no role in approving it.
My GUL has almost no cash value. Can it still be worth something?
Yes, and that is the core reason GUL owners look at settlements. Buyers price the guarantee period, the premium required to maintain it, the face amount, and life expectancy. Low cash value is the product’s design, not a sign of low settlement value.
I paid a premium late. Did I lose the guarantee?
Possibly, but many contracts allow a catch-up payment of the shortfall plus interest within a limited window. Ask the servicing company in writing whether the guarantee is currently intact, what would restore it, and by what date.
My policy lapsed. Can it be reinstated?
Often yes, typically within a set number of years, with evidence of insurability and payment of back premiums with interest. Ask separately whether reinstatement restores the no-lapse guarantee to its original terms, since that is not automatic.
Should I keep paying premiums while a sale is in progress?
Absolutely. The policy must stay in force and the guarantee must stay intact through closing. A missed payment during the process can damage the very feature a buyer is paying for.
Can a pre-need policy from a funeral home be sold?
Generally no. Pre-need coverage is usually assigned to the funeral provider, so there is nothing left to transfer, and the face amounts are far below market minimums. Ask the carrier about reduced or paid-up options instead.
How much could a GUL policy bring?
Sellers across the market have typically received roughly 10% to 35% of the death benefit. Your number depends on the face amount, the required premium, the length of the remaining guarantee, and the insured’s age and health.
What do I send to find out?
The policy cover page only — issuing company, policy number, face amount, and issue date. That is enough for a free, no-obligation review. 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
- Life Settlement Vs Surrender
- Cash Surrender Value Life Insurance
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- How It Works Policy Options
- Sell My Investors Heritage Universal Life 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.