Yes — a universal life policy from any carrier can be sold in a life settlement when the insured and the policy qualify, because the buyer purchases the contract from you and the insurer’s permission is not required. Universal life is the most frequently transacted policy type in the entire secondary market. But before applying any of that to your situation, verify which company issued your policy.
Lincoln Heritage Life Insurance Company, headquartered in Phoenix, is a final expense specialist whose coverage is marketed through the Funeral Advantage program in association with the Funeral Consumer Guardian Society. Its policies are typically small-face, simplified-issue whole life with a graded or modified death benefit in the early years — not the large accumulation-style universal life that dominates the settlement market. It is a different company from Lincoln Financial Group, which does issue substantial universal life contracts. Verify the 2026 A.M. Best rating and product details with the carrier named on your policy.
If it turns out you hold a real universal life contract with a meaningful death benefit, everything below applies. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Lincoln Heritage or Lincoln Financial.
In This Article
- Step One: Read the Issuing Company Name Exactly
- What Makes Universal Life the Market’s Favorite Policy Type
- Ask for the In-Force Illustration — Both Versions
- Why a Small Cash Value Does Not Mean a Worthless Policy
- The Size Test, Stated Plainly
- Documents to Gather for a Real Review
- Process, Escrow, and Timing
- Frequently Asked Questions
Step One: Read the Issuing Company Name Exactly
Look at your policy cover page and the return address on your premium notices. “Lincoln Heritage Life Insurance Company” is a Phoenix-based final expense carrier. “The Lincoln National Life Insurance Company” and “Lincoln Life & Annuity Company of New York” belong to Lincoln Financial Group, a different organization entirely.
Two practical clues: policies accompanied by Funeral Advantage program materials or Funeral Consumer Guardian Society membership information are Lincoln Heritage. Policies with a death benefit of $100,000 or more, sold through an advisor, and showing a flexible premium with an accumulation account are far more likely to be Lincoln Financial universal life. Confirming this is not a technicality — it determines whether the secondary market is available to you at all.
What Makes Universal Life the Market’s Favorite Policy Type
Universal life unbundles the contract. Premium flows into an account, the insurer credits interest, and each month it deducts a cost of insurance charge plus expenses. That cost of insurance is age-based and climbs relentlessly — a modest deduction at 55, a punishing one at 82.
Policies issued in the 1980s, 1990s, and early 2000s were commonly illustrated at 8% to 12% crediting rates. Many now credit at or close to their guaranteed minimum. The account value that was supposed to absorb rising insurance charges never arrived, so owners in their 70s and 80s find themselves facing premium demands several times what they planned for. That structural squeeze is why UL policies flow into the secondary market year after year.
Ask for the In-Force Illustration — Both Versions
No universal life decision should be made without an in-force illustration. Request it from the carrier’s service center in two forms: one at current assumptions using today’s crediting rate and charges, and one at guaranteed assumptions using minimum interest and maximum allowable charges.
Then find the year the account value reaches zero in each. On older contracts the guaranteed column frequently shows a lapse a decade or more earlier than the owner expected. That date is the real deadline behind any decision you make, and it is the same document a buyer will price the policy from.
| Check This | Points to Final Expense Coverage | Points to Traditional Universal Life |
|---|---|---|
| Issuing company on the cover page | Lincoln Heritage Life Insurance Company | A large national life carrier |
| Death benefit | Usually under $50,000 | Often $100,000 or more |
| How it was sold | Direct response or Funeral Advantage program | Through an advisor or brokerage |
| Premium structure | Level, fixed | Flexible, with an accumulation account |
| Settlement potential | Generally none, due to size | Active market if the insured qualifies |
Why a Small Cash Value Does Not Mean a Worthless Policy
Owners often check the surrender value on a struggling universal life policy, see a few thousand dollars against a large death benefit, and conclude the policy is a loss. For surrender purposes, that is roughly true. For settlement purposes, it is beside the point.
Buyers price the death benefit and the minimum premium required to keep the policy in force through a projected life expectancy. A large death benefit that can be sustained on a lean premium is exactly what they want, cash value or not. Federal research on the market (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value. Our page on what drives an offer covers the inputs.
The Size Test, Stated Plainly
If what you own is a small final expense contract — whether it is labeled whole life or universal life — a sale is not realistic. Buyers generally require a death benefit of $100,000 or more, because their underwriting, legal, escrow, and servicing costs are nearly identical regardless of policy size.
For those policies the sensible options are all internal: keep the coverage for its intended purpose, request a reduced death benefit the account value can sustain without further premium, surrender for whatever cash value exists, or use an accelerated death benefit rider if the contract has one. A graded death benefit in the first two or three years is another reason a young small policy has no market value — during that period the contract does not yet pay its full face amount.
Documents to Gather for a Real Review
For a policy that clears the size test, collect the most recent annual statement showing face amount, account value, cash surrender value, and any outstanding loan; the in-force illustration at both current and guaranteed assumptions; and the premium history if payments were ever skipped or reduced. A HIPAA authorization follows so buyers can estimate life expectancy from medical records.
To simply find out whether you have a candidate, the policy cover page alone is enough — insurer, policy number, face amount, issue date. That is the free policy review, and it costs nothing. Call (305) 209-7183 if you would rather talk it through.
Process, Escrow, and Timing
Plan on 60 to 120 days from application to funded payment. The sequence: free review, documentation and medical records, life-expectancy estimate, written offer, contracts, escrow, the insurer recording the ownership and beneficiary change, then funding. Most states provide a rescission window afterward.
Keep the policy in force throughout — a lapse mid-process eliminates the asset. Insist on an independent escrow agent holding the funds, and never transfer ownership against a promise of later payment. See how the process and policy options work and what policies qualify. This page is education only, not legal, tax, or investment advice.
Frequently Asked Questions
Is Lincoln Heritage related to Lincoln Financial Group?
No. They are unrelated companies with similar names. Lincoln Heritage is a Phoenix-based final expense specialist known for the Funeral Advantage program, while Lincoln Financial Group is a separate national insurer. Check the issuing company printed on your policy cover page.
Does the insurer have to approve a life settlement?
No. A life insurance policy is personal property and its owner may transfer it. The buyer purchases the contract from you, and the carrier simply records the ownership and beneficiary change after closing. Pine Lake is not affiliated with or endorsed by either company.
Why is universal life sold so often in the secondary market?
Cost of insurance charges rise steeply with age, and many policies issued decades ago were illustrated at 8% to 12% interest but now credit near their guaranteed minimum. The resulting premium increases in the insured’s 70s and 80s push owners to look for an exit.
What should I request from the carrier?
An in-force illustration at both current and guaranteed assumptions. Compare the projected lapse year in each. That single document tells you how much runway the policy actually has and is what a buyer will use to price it.
My policy has a big death benefit but almost no cash value. Can it still sell?
Often yes. Buyers value the death benefit and the premium needed to sustain the policy, not the account balance. Low cash value mainly means surrendering would pay you very little, which is exactly when a settlement is worth exploring.
What if my policy is a small final expense contract?
Then a sale is unlikely regardless of type. Buyers generally need a death benefit of $100,000 or more. Keeping the coverage, reducing the death benefit to a level the policy can sustain, or surrendering are the realistic alternatives.
How long does a settlement take?
Typically 60 to 120 days from application to funded payment. Obtaining the in-force illustration and medical records is usually the slowest stage. Funds should be held by an independent escrow agent until the insurer confirms the ownership transfer.
What do I send to get started?
The policy cover page listing the insurer, policy number, face amount, and issue date. That alone is enough for a free, no-obligation review. Call (305) 209-7183 if you have questions before sending anything.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
- What Is An In Force Illustration
- How Much Can I Get For My Life Insurance Policy
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Sell My Lincoln Heritage Whole Life Policy
- Sell My Physicians Mutual 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.