Yes — a Midland National guaranteed universal life policy can be sold in a life settlement, because the contract is your personal property and a buyer purchases it from you; the insurer’s permission is not required. GUL is, in fact, one of the policy types buyers like most. It is priced almost entirely as death benefit rather than savings, and its no-lapse guarantee gives a buyer something rare in this market: predictability.
Midland National Life Insurance Company was founded in 1906 as Dakota Mutual Life in Watertown, South Dakota, and operates today from West Des Moines, Iowa, as a member of Sammons Financial Group. Its parent, Sammons Enterprises, is employee-owned through an employee stock ownership plan, so there is no public shareholder base and no demutualization in the company’s history (verify current corporate structure and A.M. Best rating with the company as of 2026).
This guide covers the one thing GUL owners must understand before doing anything: the no-lapse guarantee is conditional, and a missed or late premium can weaken or void it permanently. Pine Lake Life Solutions is not affiliated with Midland National or Sammons Financial Group.
In This Article
What a Guaranteed Universal Life Policy Actually Is
Guaranteed universal life looks like universal life on the surface — flexible premium, an account value, monthly deductions — but it is designed to do something different. Instead of accumulating savings, it buys a death benefit guaranteed to stay in force to a stated age, often 95, 100 or 121, as long as you meet the guarantee’s premium requirements.
The trade-off is deliberate: GUL carries very little cash value, sometimes almost none, because nearly every premium dollar goes toward securing the guarantee rather than building an account. Owners are frequently startled to learn that after 15 years of premiums the surrender value is a small fraction of what they paid in.
That structure is precisely why GUL is attractive on the secondary market. A buyer is purchasing a death benefit with a contractual promise behind it, not a policy whose survival depends on interest rates or market returns. Less uncertainty for the buyer often translates into a better price for the seller.
The No-Lapse Guarantee Is Conditional — and Fragile
The guarantee is not unconditional. It is typically maintained by a shadow account, secondary guarantee account, or cumulative premium test that the carrier tracks alongside your actual account value. As long as you have paid at least the required cumulative premium by each due date, the guarantee holds even if the real account value falls to zero.
Break the test and things change fast. A skipped premium, a payment made late, or even paying the right amount at the wrong time can reduce the guarantee period — sometimes by years — or void it entirely. Taking a policy loan or a withdrawal can also disturb the calculation.
Many contracts allow a catch-up: paying the shortfall plus an interest adjustment within a defined window restores the guarantee. Many do not, or restore it only partially. This is not something to assume in either direction. Call the policyholder service number on your statement and ask, specifically, whether the secondary guarantee is currently intact, to what age, and whether any catch-up option exists.
Why Buyers Pay Attention to GUL
Put yourself in a buyer’s position. Two policies with identical death benefits sit on the desk. One is an indexed or variable contract whose survival depends on crediting rates and rising cost-of-insurance charges. The other is a GUL with an intact no-lapse guarantee to age 100 and a known premium schedule.
The second is far easier to underwrite, because the future premium is defined rather than projected. That reduced uncertainty is worth something, and it is the reason a GUL in good standing often prices well relative to other permanent policies of similar size.
The published market ranges still apply: the GAO’s study (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value on average. With GUL, that surrender multiple can look enormous simply because the surrender value is so small — which is exactly the point. Surrendering a GUL is usually the worst available outcome.
| Premium History | Effect on the No-Lapse Guarantee | What to Do |
|---|---|---|
| All premiums paid in full and on time | Guarantee intact to the stated age | Get written confirmation and the guarantee premium schedule |
| A payment made late | Guarantee period may be shortened | Ask whether a catch-up payment with interest can restore it |
| A premium skipped entirely | Guarantee may be reduced or voided permanently | Request the current guarantee status in writing before deciding anything |
| Loan or withdrawal taken | Can disturb the secondary guarantee calculation | Confirm the impact with the carrier; it is not always obvious on the statement |
Documents to Gather for a GUL Review
Begin with the policy cover page — issuing company, policy number, face amount, issue date. One page, and it is enough for a free review.
If the policy looks like a candidate, three more documents matter, and one of them is specific to GUL:
- Most recent annual statement, showing account value, surrender value, and the status of the secondary guarantee.
- In-force illustration run to show the premium required to maintain the no-lapse guarantee to its full duration — not merely to keep the account value positive. Those are different numbers, and the guarantee premium is the one that matters.
- Written confirmation of guarantee status: is it intact, to what age, and were any premiums ever late?
That third item is the document most often missing from GUL files, and it is the one that determines whether the policy is worth what the owner thinks it is.
Sell, Keep, or Reduce?
Weigh the realistic paths:
- Keep paying. Correct if heirs still need the death benefit and the premium is affordable. GUL is efficient coverage when it is coverage you actually want.
- Reduce the face amount. Many contracts allow it, lowering the guarantee premium. Confirm how the reduction affects the secondary guarantee before filing.
- Surrender. Usually the poorest outcome with GUL, because there is so little cash value to collect — see how cash surrender value works.
- Life settlement. A lump sum for the contract, typically far above the small surrender value on a qualifying GUL.
- Retained death benefit. Some transactions end the premium obligation while leaving you a portion of the benefit — see the policy options overview.
The comparison is laid out on our settlement vs. surrender page.
Process, Timeline and Safeguards
The sequence: free review from the cover page (a few days), documentation including the in-force illustration and medical records (two to four weeks), a written offer, contracts with an independent escrow agent, then the change of ownership and funding. Sixty to 120 days end to end is realistic.
The change of ownership is generally executed as an absolute assignment on Midland National’s own current form, frequently requiring notarization. Request the current packet from the service center rather than reusing an old document. A HIPAA authorization also enters the file so a life expectancy estimate can be prepared; keep it specific and revocable.
Insist on written offers with commissions disclosed, independent escrow holding funds until the insurer confirms the transfer, and a clear answer on your state’s rescission window. Keep paying premiums during the process — letting the guarantee lapse mid-transaction can destroy the very value you are trying to capture.
Who Qualifies, and the Next Step
Typical profile: insured roughly 65 or older, or younger with significant health conditions; death benefit of $100,000 or more; policy in force at least two years; and, for GUL specifically, a secondary guarantee that is intact. A policy whose guarantee was damaged by late payments still may be salable, but it will be priced as an ordinary universal life contract, which usually means less.
Common reasons owners reach this point: the estate-planning need the policy was bought for has disappeared, a business buy-sell arrangement ended, or the household needs cash for senior care or a Medicaid spend-down.
Send the policy cover page for a free review, or call (305) 209-7183. Read what policies qualify first if you want background. For other Midland National contracts, see selling a Midland National universal life policy or a Midland National whole life policy. Nothing here is tax, legal or investment advice.
Frequently Asked Questions
Why do buyers like guaranteed universal life policies?
Because the future premium is defined rather than projected. A GUL with an intact no-lapse guarantee removes much of the uncertainty a buyer faces with indexed or variable policies, where crediting rates and rising charges can change what it costs to keep coverage in force. Less uncertainty generally supports a better price.
I paid a premium late. Did I lose the guarantee?
Possibly, and possibly only in part. Late or skipped payments can shorten the guarantee period or void it, depending on the contract’s secondary guarantee test. Some policies permit a catch-up payment with an interest adjustment within a defined window. Ask the carrier in writing for your current guarantee status and any catch-up option.
My GUL has almost no cash value. Is it still worth something?
Yes, potentially a great deal. GUL is priced as death benefit rather than savings, so low cash value is by design, not a sign of failure. A buyer is purchasing the guaranteed death benefit, which is why surrendering a GUL is usually the worst available outcome.
Does Midland National have to approve the sale?
No. A life insurance policy is personal property its owner may transfer, and the buyer purchases the contract from you. The company records the new owner and beneficiary after closing but has no authority to block the transaction.
Which in-force illustration should I request for a GUL?
Ask for the premium required to maintain the no-lapse guarantee to its full stated duration, not merely the premium needed to keep the account value above zero. Those are different numbers, and the guarantee premium is the one that matters to both you and a buyer.
How much might a GUL policy sell for?
The GAO’s market study (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value on average. With GUL the surrender multiple can look especially large because surrender value is so small. Your actual figure depends on age, health, death benefit and the guarantee premium.
Should I keep paying premiums while a sale is in progress?
Yes. Letting the policy or its guarantee lapse during the process can destroy the value you are trying to capture, and a lapsed policy generally cannot be sold. Keep the coverage current until the ownership change is recorded and escrow releases your funds.
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Related Reading
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Sell My Midland National Universal Life Policy
- Sell My Midland National Whole 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.