Universal life is the most commonly sold policy type in the secondary market, for a structural reason. Unlike whole life, a universal life contract has no guaranteed premium and no guaranteed cash value schedule. It is an account balance that monthly deductions are pulled from, and those deductions rise sharply with the insured’s age. Many Midland National universal life owners in their seventies and eighties are being asked for several times the premium they paid a decade ago, or are watching a policy they believed was paid up drift toward lapse.
This page explains how to read what is actually happening inside a Midland National universal life contract, which document tells you the truth about it, and how a life settlement compares to paying more, reducing the death benefit, or letting the policy go. Pine Lake Life Solutions is not affiliated with, endorsed by, or connected to Midland National Life Insurance Company or Sammons Financial Group, and does not purchase policies. The only thing offered is a free, no-obligation policy review.
In This Article
- The In-Force Illustration Is the Only Document That Matters
- Why Cost of Insurance Outruns the Account Value
- Who Services Midland National Universal Life Policies in 2026
- Financial Strength Ratings as of 2026
- Comparing Your Realistic Options
- Change of Ownership: The Step That Closes the Transaction
- Frequently Asked Questions
The In-Force Illustration Is the Only Document That Matters
Before anything else, request a current in-force illustration from Midland National, run at current charges and current credited rates, with no additional premium assumed and again with the premium required to carry the policy to age 100 or maturity. This single document answers the question every universal life owner is really asking, which is how long the policy survives if nothing changes.
An annual statement tells you where the account value stood on one date. It does not project forward. The original illustration you were given at the point of sale is worse than useless now, because it was built on assumptions about interest crediting and cost of insurance charges that were made decades ago. Comparing the original illustration to today’s reality is one of the fastest ways to understand why a policy that was supposed to be self-sustaining is now demanding money.
Ask specifically for the guaranteed column as well as the current column. The guaranteed column shows what the carrier is contractually permitted to charge at maximum. On many older universal life contracts, the gap between the two columns is enormous, and that gap is the risk you are carrying.
Why Cost of Insurance Outruns the Account Value
Inside a universal life policy the carrier deducts a monthly cost of insurance charge, plus policy fees and any rider costs, from the account value. The cost of insurance is calculated on the net amount at risk, which is roughly the death benefit minus the account value, multiplied by a mortality rate that climbs every year with attained age.
Two things happen as an insured ages into the eighties. The mortality rate rises steeply, and if the account value has been depleted, the net amount at risk grows as well, so the charge is applied to a larger base at a higher rate. The compounding effect is why universal life policies that looked stable at age sixty-five can consume the entire account balance within a few years at age eighty. Interest credited to the account value in a low-rate environment does not come close to offsetting it.
Once the account value is exhausted and the grace period runs out, the policy lapses and the death benefit is gone. That is the outcome a settlement exists to prevent, because a lapsed universal life policy with no cash value returns nothing at all to the owner. Whether a settlement offer is available on your specific contract depends on the insured’s age and health and the economics of the policy, and it is never guaranteed.
Who Services Midland National Universal Life Policies in 2026
Owners of older universal life contracts often cannot tell whether their policy has been sold, reinsured, or moved to a runoff administrator. With Midland National, the servicing chain has stayed intact, which removes one common complication.
The company was incorporated on August 30, 1906 as The Dakota Mutual Life Insurance Company under South Dakota law and took the Midland National name in 1925. Reserve Life Insurance Company, controlled by Charles Sammons, acquired majority ownership in 1958, and Charles Sammons established an employee stock ownership plan in 1978, which is the origin of the employee-owned structure the parent describes today. Effective July 1, 1999 the company redomesticated from South Dakota to Iowa; it is regulated by the Iowa Insurance Division under NAIC company code 66044.
Midland National is not in runoff. It continues to issue new individual life insurance and annuities as a member company of Sammons Financial Group. For an in-force universal life owner that translates into practical benefits: current forms are maintained, an active service desk answers illustration requests, and ownership changes are processed as routine business rather than as an exception.
| Document | Why a reviewer needs it | Where to get it |
|---|---|---|
| Policy cover page | Face amount, issue date, owner, insured, policy number | Your policy file |
| Most recent annual statement | Current account value, loans, deductions taken | Carrier or online account |
| In-force illustration at current charges | Projects how long the policy survives with and without added premium | Request from Midland National service desk |
| In-force illustration at guaranteed charges | Shows the worst case the contract permits | Request in the same call |
| Loan payoff quote | Reduces net proceeds under every option | Carrier |
Financial Strength Ratings as of 2026
AM Best affirmed Midland National’s Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Rating of aa- on August 13, 2025, with a stable outlook, citing very strong balance sheet strength and strong operating performance. A+ is the second highest of AM Best’s fifteen financial strength categories. S&P Global Ratings affirmed A+ (Strong) on May 15, 2025, and Fitch Ratings assigned A+ with a stable outlook on June 17, 2025.
None of this protects you from the mechanics described above. A carrier can be financially excellent and still be charging contractually permitted cost of insurance rates that will consume your account value. Ratings speak to whether a claim will be paid, not to whether your policy will still be in force when the claim arises. Confirm current ratings with the carrier or AM Best.
Comparing Your Realistic Options
Once you have the in-force illustration, the choice set is usually clear. You can fund the policy at the level required to keep it in force, which may mean a large annual increase. You can reduce the face amount, which lowers the net amount at risk and therefore the monthly deductions, keeping a smaller policy affordable. You can convert the remaining cash value into a nonforfeiture option if the contract offers one, though many universal life policies do not. You can surrender for whatever cash surrender value remains, which on a depleted universal life policy is often close to zero. You can stop paying and let it lapse, which returns nothing.
Or you can seek a life settlement, in which a licensed institutional buyer purchases the policy for a lump sum, becomes the owner, and takes over all future premiums. Universal life is the most-settled policy type precisely because the alternative is so often a total loss of value. Buyers focus on the insured’s life expectancy and the cost of carrying the policy, so offers vary widely and many policies receive none.
Pine Lake does not buy policies and cannot promise you an offer, a value, or eligibility. What a free policy review does is put the surrender figure, the required premium, and any offers that come back on the same page so the comparison is honest.
Change of Ownership: The Step That Closes the Transaction
A settlement is not complete when a price is agreed. It is complete when Midland National records the change of ownership, and where applicable an absolute assignment, on its own books. Funds are typically held in escrow until the carrier confirms that recording in writing.
Request the current ownership change and assignment forms directly from Midland National rather than downloading a copy from a form aggregator, because carriers revise form versions and reject superseded ones. If the policy is owned by a trust or is moving to or from a trust, Midland National also requires a Certification of Trust Agreement, which the carrier requires upon a change of ownership of an existing policy to or from a trust and upon a change of trustee.
Midland National’s life insurance policyholder line is 800-923-3223, or 712-847-1334 internationally, Monday through Thursday 7:30 a.m. to 5:00 p.m. and Friday 7:30 a.m. to 12:30 p.m. Central time. Correspondence goes to One Sammons Plaza, Sioux Falls, SD 57193. Verify these details with the carrier.
Frequently Asked Questions
How do I know if my Midland National universal life policy is close to lapsing?
Request an in-force illustration run at current charges assuming no further premium. It will show the projected year the account value reaches zero. If that year is inside your life expectancy, the policy is on track to lapse and the death benefit will be lost. An annual statement alone will not tell you this because it reports a single point in time rather than a projection.
Can I sell a universal life policy that has almost no cash value left?
Sometimes, yes. Buyers in the secondary market are valuing the future death benefit relative to the cost of keeping the policy in force, not the current account balance, so a depleted policy can still receive an offer if the insured’s life expectancy supports it. Eligibility and value are never guaranteed and many policies receive no offer at all.
Why did my premium go up when the policy said it was flexible?
Flexible premium means the carrier does not require a fixed payment, not that the cost stays fixed. The monthly cost of insurance deduction rises with the insured’s attained age and is applied to the net amount at risk. When credited interest no longer covers those deductions, the account value falls and the carrier notifies you that more premium is needed to keep the policy in force.
Does Midland National still sell new life insurance, or is it running off old blocks?
Midland National continues to issue new individual life insurance and annuity contracts as a member company of Sammons Financial Group and is not in runoff as of 2026. That is useful to an in-force owner because current service forms and an active policyholder service desk are maintained, which keeps ownership changes on a normal processing timetable.
Will Pine Lake buy my policy?
No. Pine Lake Life Solutions does not purchase policies and is not affiliated with Midland National. Pine Lake provides education and a free, no-obligation policy review that lays out surrender value, required premium, and any offers received from licensed buyers so you can compare them. Nothing on this page is legal, tax, or investment advice.
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Related Reading
- Sell My Midland National Whole Life Policy
- Sell My Midland National Guaranteed Universal Policy
- Sell My Midland National Indexed Universal Policy
- How To Read In Force Illustration
- How Long Policy Survive Without Premiums
- Life Insurance Grace Period Explained
- How Health Affects Life Settlement Value
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.