Yes — you can sell an Investors Heritage whole life policy through a life settlement, 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. Investors Heritage’s role after closing is purely administrative — recording the new owner and beneficiary.
There is one Investors Heritage-specific thing to check before you get your hopes up. The company’s historic specialty is pre-need funeral and final-expense insurance sold through funeral homes. If your policy is one of those, it is usually small and often already assigned to a funeral provider — and an assigned pre-need policy generally cannot be sold at all. This page will help you tell the difference in about two minutes.
If you hold a larger, individually owned whole life contract, the rest of this guide shows you how to read the number that a settlement offer is measured against. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Investors Heritage. Education only — not legal, tax, or investment advice.
In This Article
- About the Company and Who Services Your Policy
- Pre-Need and Final-Expense Policies: The Honest Answer
- How to Read the Cash Surrender Value Column
- Dividends and Paid-Up Additions
- Policy Loans Reduce What You Actually Receive
- Documents, Process, and Realistic Timing
- Compare Every Exit Before You Decide
- Frequently Asked Questions
About the Company and Who Services Your Policy
Investors Heritage Life Insurance Company is based in Frankfort, Kentucky and has served the pre-need and final-expense market for decades. In 2018 it was acquired by Aquarian Holdings, a private investment group. As of 2026, confirm the current ownership, the servicing address, and the company’s A.M. Best rating directly with the carrier or through A.M. Best — ownership and ratings change, and an old policy jacket is not a reliable source.
A change in corporate ownership does not alter your contract. Guaranteed cash values, the death benefit, the premium schedule, and any dividend provisions stay exactly as written. If your annual statement now carries different branding, that is a servicing detail, not a change to what you own.
Pre-Need and Final-Expense Policies: The Honest Answer
Pre-need life insurance is bought to fund a specific funeral. It is typically small — $5,000 to $15,000 is common — and it is usually assigned to the funeral home that will provide the services. That assignment matters enormously.
An assigned pre-need policy generally cannot be sold in a life settlement. You have already directed the benefit to a third party, and there is nothing left to transfer. Even if the assignment could be unwound, the face amount is far below what the settlement market can work with. The same is true of stand-alone final-expense whole life policies at $10,000 or $25,000: transaction and underwriting costs alone exceed what any buyer could reasonably pay.
If that describes your coverage, do not spend weeks chasing a sale. Better questions to ask the carrier are whether a reduced paid-up option is available, what the current surrender value is, and whether the premium is still required at your age. Keeping the coverage is very often the right answer for a small policy.
How to tell which you have: look at the face amount on the cover page, and look for the words “assignment,” “funeral home,” or a named funeral provider anywhere in the policy or on statements. If the face amount is $100,000 or more and there is no assignment, keep reading.
How to Read the Cash Surrender Value Column
Every whole life annual statement has a column that determines whether a settlement makes sense: cash surrender value. It is not the same as accumulated cash value, and it is not the death benefit. Cash surrender value is what the insurer would actually hand you today if you gave up the policy.
To find it, pull your most recent annual statement and look for these lines in order:
- Face amount / death benefit — the number your beneficiaries would receive.
- Accumulated cash value — the guaranteed value built up so far.
- Surrender charge — subtracted from accumulated value in earlier policy years.
- Outstanding loan and accrued loan interest — also subtracted.
- Net cash surrender value — the bottom line and the number that matters.
That net figure is your floor. A settlement offer is benchmarked against it, not against the death benefit. The federal GAO study (GAO-10-775) found that settlements averaged roughly 4 to 8 times cash surrender value, with sellers typically receiving about 10% to 35% of face value. Our page on cash surrender value breaks this down further.
| Line on Your Annual Statement | What It Tells You | Effect on a Settlement |
|---|---|---|
| Face amount / death benefit | What beneficiaries would receive | The asset a buyer is purchasing |
| Paid-up additions | Extra fully paid coverage bought by dividends | Adds death benefit without adding premium — helpful |
| Accumulated cash value | Guaranteed value built up to date | Starting point, not the number that matters |
| Outstanding loan + interest | What you already borrowed | Deducted from proceeds at closing |
| Net cash surrender value | What the carrier would pay you today | The floor any offer must beat |
Dividends and Paid-Up Additions
If your whole life policy is participating, the company may credit dividends. Dividends are not guaranteed, and how you elected to receive them changes the picture:
- Paid-up additions. Dividends buy small chunks of extra fully paid coverage. Over decades this quietly raises both the death benefit and the cash value — meaning your policy may be worth more than the face amount printed on the cover page. Check the statement for the current total death benefit including additions.
- Premium reduction. Dividends offset what you pay out of pocket, lowering your annual cost.
- Cash payment or accumulation at interest. Dividends come to you or sit in a side account.
Paid-up additions generally help a settlement, because they add death benefit without adding premium. Ask the carrier for a statement showing base face amount and paid-up additions separately, so a buyer is pricing the whole asset.
Policy Loans Reduce What You Actually Receive
Many long-held whole life policies carry a loan the owner half-forgot about. Loans accrue interest, and unpaid interest is often added to the loan balance each year, so a $12,000 loan from 2004 may be considerably larger now.
At closing, the loan balance comes off the top. If a buyer values your policy at $60,000 and there is a $22,000 loan outstanding, the loan is satisfied from the proceeds and you net the difference. This is not a penalty — you already received that money years ago — but it surprises people who never subtracted it in their heads.
Before you evaluate any offer, ask the carrier for the exact current loan balance including accrued interest, as of a specific date. Then compare offers on a net basis.
Documents, Process, and Realistic Timing
To start: just the policy cover page — issuing company, policy number, face amount, and issue date. That is enough for a free, no-obligation policy review.
If it is a candidate: the most recent annual statement (with the surrender value and loan detail described above) and an in-force illustration requested from the servicing company. A HIPAA authorization comes later so life expectancy can be estimated from medical records; keep any release specific and revocable.
Timing: plan on 60 to 120 days end to end. Documentation takes 2 to 4 weeks, offers and negotiation follow, then contracts, independent escrow, the ownership change with the carrier, and release of funds. Most states provide a rescission window after closing. Keep paying premiums until the transfer is complete.
Compare Every Exit Before You Decide
Selling is one of several ways out of a whole life policy, and it is not always the best one. Reduced paid-up insurance ends premiums and keeps a smaller fully paid death benefit. A policy loan gives you cash while keeping the policy, at the cost of interest and a reduced benefit. Surrender is fast and simple but usually pays the least. A life settlement typically pays the most on qualifying policies, but it ends the coverage entirely.
The settlement case is strongest when the coverage is no longer needed, the premiums have become a burden, or you need cash now — often for care costs. It is weakest when heirs still depend on the death benefit and the premium is comfortable. Work through settlement versus surrender and what qualifies, then send the cover page or call (305) 209-7183.
Frequently Asked Questions
Do I need Investors Heritage to approve the sale?
No. A life insurance policy is your personal property and the buyer purchases the contract from you. The carrier does not approve or block the transaction; it records the change of owner and beneficiary once the sale closes.
My policy was bought through a funeral home. Can I sell it?
Usually not. Pre-need policies are typically assigned to the funeral provider that will deliver the services, and an assigned policy has nothing left to transfer. They are also far too small for the settlement market. Ask the carrier about a reduced paid-up option instead.
What is the difference between cash value and cash surrender value?
Accumulated cash value is the value built up in the policy. Cash surrender value is what the insurer would actually pay you after subtracting any surrender charge and any outstanding loan with interest. The net surrender figure is the number a settlement offer is compared against.
How much more than surrender value might a settlement pay?
The federal GAO study found settlements averaging roughly 4 to 8 times cash surrender value, with sellers typically receiving about 10% to 35% of face value. Your actual result depends on age, health, face amount, premiums, and cash value.
Do paid-up additions increase what I can get?
Generally yes, because they raise the death benefit without raising the premium a buyer must pay. Ask the carrier for a statement showing the base face amount and paid-up additions separately so the full death benefit is priced.
What happens to my policy loan when I sell?
The outstanding balance plus accrued interest is paid off from the sale proceeds at closing, and you receive the remainder. Request the exact balance as of a specific date from the carrier so you can compare offers on a net basis.
Is a $25,000 whole life policy worth shopping to buyers?
Realistically no. Small final-expense-sized policies do not attract offers because underwriting and closing costs exceed what a buyer could pay. Pine Lake works with policies of $100,000 or more in death benefit.
What do I send to get a free review?
Just the policy cover page — the first page showing the issuing company, policy number, face amount, and issue date. That is enough to know whether the policy is a realistic candidate. Call (305) 209-7183 with questions.
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
- Cash Surrender Value Life Insurance
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Sell My Investors Heritage Universal Life Policy
- Sell My Investors Heritage Term 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.