Yes — a Midland National 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 needed. Universal life is the most frequently sold policy type on the secondary market, and for a straightforward reason: the same flexible design that made it attractive at age 50 is what makes it expensive to keep at 80.
Midland National Life Insurance Company began in 1906 as Dakota Mutual Life in Watertown, South Dakota, and is now based in West Des Moines, Iowa, as a member of Sammons Financial Group. Its parent, Sammons Enterprises, is employee-owned through an ESOP — meaning the company has no public shareholders and no demutualization event in its past, so unlike many carriers there is no spun-off retail block chasing policyholders around (verify current corporate details and financial strength rating with the company as of 2026).
This guide covers why UL policies fail late in life, which document actually determines your offer, and the safeguards to insist on. Pine Lake Life Solutions is not affiliated with Midland National or Sammons Financial Group.
In This Article
The Mechanics That Make UL Fragile Late in Life
Universal life is best understood as an account with a bill attached. Premiums flow in, the carrier credits interest, and each month the policy deducts a cost of insurance charge plus administrative and rider charges. When the account value hits zero and no additional premium arrives, the policy lapses.
Cost of insurance is priced off the insured’s attained age, so it is modest in middle age and severe past 75. Policies issued in the 1980s and 1990s were frequently illustrated at crediting rates that vanished when interest rates fell, so the credit side underperformed for decades while the charge side rose exactly as designed.
The outcome shows up as a letter: pay considerably more, or the coverage ends. Owners in that position have four honest choices — pay, reduce the coverage, walk away with the surrender value, or sell. A settlement exists because a policy that no longer works for a household can still be a sensible asset for a buyer with a long horizon.
The In-Force Illustration Decides Everything
An in-force illustration is a projection run on your actual policy as it stands today. Request three versions from the Midland National service number on your statement:
- Current charges, current crediting rate, current premium — how many years does the policy survive if nothing changes?
- Guaranteed maximum charges, guaranteed minimum rate — the worst case the contract permits.
- Minimum premium to carry the policy to maturity — the true annual cost of keeping it.
That last number is usually the eye-opener, and it is the same number a buyer models, because the buyer will be the one paying it going forward. The lower it is, the more room there is in an offer.
Requests are generally made in writing and can take a couple of weeks. Start the request early; it is almost always the slowest step in the whole process.
What Actually Moves the Offer
Five variables do most of the work:
- Death benefit. Larger face amounts absorb transaction costs better. $100,000 is a common practical minimum.
- Age and health of the insured. A shorter life expectancy estimate means fewer premium years for the buyer, which raises the offer.
- Required future premium. The single biggest lever after health.
- Remaining account value. It can fund early premiums, which helps the economics.
- Policy loans. Netted out of the offer, with accrued interest.
For honest expectations, use published data rather than promises: 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. Anyone quoting a number before reading your illustration is guessing.
| Step | Typical Duration | What Happens |
|---|---|---|
| Free review | A few days | You send the policy cover page; a specialist screens whether it is a realistic candidate |
| Documentation | 2–4 weeks | In-force illustration, medical records, life expectancy estimates |
| Offer and negotiation | 1–3 weeks | Written offer showing gross proceeds and any commission separately |
| Contracts, escrow, ownership change | 3–6 weeks | Independent escrow holds funds; insurer records the new owner; payment released |
Alternatives Worth Pricing First
Ask the service center to quote each of these before you decide anything:
- Reduce the face amount. Lower death benefit, lower monthly charges, longer runway.
- Switch to a level death benefit if your policy currently pays face plus account value. This cuts the amount at risk and therefore the cost of insurance.
- Drop unneeded riders. Old riders quietly bill every month; some are no longer relevant.
- Surrender. You get the cash surrender value, less any surrender charge still in force — see what that figure represents.
- Life settlement. A lump sum for the whole contract, usually well above surrender for qualifying policies.
Our settlement vs. surrender comparison and the policy options overview put the trade-offs side by side.
Documents and the Change-of-Ownership Step
The starting point is one page: the policy cover page showing issuing company, policy number, face amount and issue date. That alone is enough for a free review.
Then: the most recent annual statement (account value, surrender value, monthly deductions, death benefit option, loan balance) and the in-force illustrations described above.
The transaction closes with a change of ownership, generally an absolute assignment executed on Midland National’s own current form and often requiring notarization. Request the current packet directly from the service center. A HIPAA authorization also enters the file so a life expectancy estimate can be prepared — keep it narrow and revocable.
Timeline and Safeguards
Plan on 60 to 120 days from first review to funded payment. Medical records and the illustration take the longest; the offer itself is quick.
Three protections are worth being firm about. Get every offer in writing with gross proceeds and any commission disclosed separately, so you can see what actually reaches you. Require an independent escrow agent to hold the funds and release them only after the insurer confirms the ownership change. And confirm your state’s rescission window — the period after funding during which the sale can be unwound.
Think about downstream effects too. A lump sum can affect eligibility for means-tested programs, and settlement proceeds carry their own tax treatment. Consult your own tax advisor, and an elder law attorney if Medicaid planning is involved. Nothing here is legal or tax advice.
Act Before the Grace Period Runs Out
Timing deserves its own point. A policy that has already lapsed generally cannot be sold — there is no death benefit left for a buyer to acquire. If you have received a lapse warning or are inside a grace period, that is the moment to get a review, not after.
The qualifying profile is familiar: insured around 65 or older, or younger with meaningful health conditions; death benefit of $100,000 or more; policy in force at least two years. Universal life meets it more often than any other type.
Send the policy cover page for a free review, or call (305) 209-7183. Read what policies qualify and browse the education center for background. For other Midland National contracts, see selling a Midland National guaranteed universal life policy or a Midland National whole life policy.
Frequently Asked Questions
Can I sell a universal life policy that is close to lapsing?
Often yes, and it is one of the most common reasons owners sell. A policy at lapse risk still carries a death benefit a buyer can preserve by paying premiums. Move before the grace period ends, because a fully lapsed policy generally cannot be sold.
Why has my premium requirement gone up so much?
Universal life deducts a cost of insurance that rises annually with the insured’s age, while credited interest may have run below the original illustration for years. When charges outpace credits, the account value drains and the carrier requires a larger premium to keep the coverage in force.
Does Midland National have to approve the sale?
No. The policy is your personal property and the buyer purchases the contract from you. The company records the change of owner and beneficiary after closing but cannot block the transaction.
How do I request an in-force illustration?
Call the policyholder service number printed on your most recent statement and ask for an in-force illustration at current charges, one at guaranteed maximum charges, and the minimum premium required to carry the policy to maturity. Requests are usually made in writing and can take a couple of weeks.
How much might a universal life 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. Your outcome depends on the insured’s age and health, the death benefit, the required future premium and any loan balance.
Is Midland National a subsidiary of a bigger company?
It is a member of Sammons Financial Group, whose parent Sammons Enterprises is employee-owned through an employee stock ownership plan. Its sibling insurer is North American Company for Life and Health Insurance. Confirm current corporate structure and ratings with the company directly.
What do I have to send to start?
Only the policy cover page — the first page showing the issuing company, policy number, face amount and issue date. The review is free and carries no obligation. If the policy looks like a candidate, the annual statement and in-force illustration come next.
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
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- Cash Surrender Value Life Insurance
- Education Center
- Sell My Midland National Guaranteed Universal 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.