Modern Woodmen of America is not a stock insurance company and not a mutual insurance company. It is a fraternal benefit society, and that distinction shapes almost everything about how its coverage is documented, serviced and transferred. Its own frequently asked questions state the position plainly: “Modern Woodmen was founded as a fraternal benefit society. That means we’re a tax-exempt organization under Internal Revenue Code 501(c)(8) that has a fraternal purpose.” Coverage is issued as a certificate rather than as a policy, and the society describes itself as created for its members and owned and operated by them.
If you own a Modern Woodmen whole life certificate and are weighing whether to keep it, surrender it, or explore the life settlement market, the fraternal structure is where the analysis has to start. This page covers what is verifiable as of July 2026, what the society requires to change ownership, and how guaranteed cash value changes the comparison. Pine Lake Life Solutions is an independent educational resource, is not affiliated with or endorsed by Modern Woodmen of America, and does not purchase policies.
In This Article
What a Fraternal Certificate Is
Modern Woodmen was founded in 1883 and operates from a home office at 1701 1st Avenue, Rock Island, Illinois 61201, with a mailing address of P.O. Box 2005, Rock Island, Illinois 61204-2005. As of 2026 the society describes itself as a fraternal financial services organization with nearly 700,000 members, offering life insurance, annuities and investments, with securities services through its subsidiary MWA Financial Services, Inc.
A fraternal benefit society is organized around membership rather than shareholders. Joining is part of buying the product: as Modern Woodmen puts it, when you join, you become a member of the organization. Coverage is issued under a certificate, and the society’s own materials use “certificate (policy)” interchangeably. For most day-to-day purposes the difference is terminology. For a transfer of ownership it is not, because fraternal certificates can carry assignment and eligibility conditions that ordinary policies do not, and those conditions are set by the society’s bylaws and the certificate itself rather than by general market practice. Do not assume your certificate is freely assignable, and do not assume it is not. Ask the society in writing.
Ownership Changes Require a Notarized Absolute Assignment
Modern Woodmen publishes its service forms directly. Its frequently asked questions give the procedure without ambiguity: “To change ownership, complete this printable absolute assignment form, get your signature notarized and send it to our home office.” That notarization requirement is worth flagging early, because it is a step many owners are not expecting and it cannot be handled over the phone.
The society’s printable forms page lists a related set. An absolute assignment form transfers all ownership rights in an insurance or annuity certificate to another individual or entity. A collateral assignment form transfers certain rights as security for a debt, which is a different instrument and not a sale. A beneficiary and/or name change form covers beneficiary changes and name corrections on life or annuity certificates. For junior certificates there is an applicant change form and a release of control to the insured on a junior certificate, available once the insured reaches age sixteen. Forms are also available through the online member account or by calling the Service Center at 309-558-3077 or 800-447-9811, Monday through Friday, 8 a.m. to 4:30 p.m. Central. The home office fax is 309-793-5547. Confirm the current version of any form with the society before relying on it.
Guaranteed Cash Value Sets the Floor
Whole life is the policy type where you already hold a guaranteed number. The certificate contains a table of guaranteed cash values that rises on a fixed schedule, and that value is what the society owes you if you surrender. Because it is guaranteed, it becomes the floor for every other comparison. A life settlement that does not clearly exceed the net surrender value is not worth pursuing, and any offer should be measured against that figure first.
Surrendering, however, ends the death benefit permanently. Most whole life contracts also allow nonforfeiture elections that keep some coverage without further premiums: reduced paid-up coverage, which converts the cash value into a smaller death benefit that is fully paid for life, and extended term insurance, which keeps the current face amount for a limited number of years and then stops. A certificate loan is a third route that leaves the contract in force but accrues interest and reduces the death benefit until repaid. Ask the Service Center for the current net cash surrender value, the reduced paid-up amount, the extended term duration, and any loan payoff, all as of the same date.
| Modern Woodmen form | What it does |
|---|---|
| Absolute assignment form | Transfers all ownership rights in a certificate; signature must be notarized |
| Collateral assignment form | Transfers certain rights as security for a debt, not a sale |
| Beneficiary and/or name change form | Changes the beneficiary or corrects names on a life or annuity certificate |
| Applicant change form | Changes the current applicant on a junior certificate |
| Release of control to the insured | Transfers control of a junior certificate to the insured at age 16 or older |
| Authorization to release information | Permits the society to share certificate information with a third party |
Premium Structure and Whether Your Certificate Pays Dividends
Modern Woodmen’s current whole life plans allow premiums to be structured over ten years, over twenty years, to age 65, to age 121, or paid in a single premium. If your certificate is on a limited-pay schedule, it may already be paid up or approaching paid-up status, which materially changes the calculation: a contract with no remaining premium obligation is far less burdensome to keep, and the case for exiting is correspondingly weaker.
Whether your particular certificate is participating and pays a dividend or refund is a question only the certificate and the society can answer, and it should not be assumed either way. If it does, ask how the dividend has been applied over the years, whether it accumulated at interest, reduced premiums, or purchased additional paid-up coverage. Certificates that bought additional coverage for decades can carry a meaningfully higher death benefit and cash value than the original schedule shows. Any dividend or refund is by nature not guaranteed, and past amounts do not predict future ones.
The Society’s Financial Position
Because a fraternal society answers to its members rather than to shareholders, its published financial figures are the most direct read available. Modern Woodmen reports that at year-end 2025 its assets equaled $18.64 billion, total surplus was $2.9 billion, and total life insurance, annuity and other certificate reserves totaled $10.8 billion. It reports a solvency ratio of 118.2 percent for 2025 and states that approximately 98.7 percent of its bonds were of high or medium quality as of December 31, 2025.
On external ratings, AM Best rates Modern Woodmen’s financial strength A (Excellent), described by the society as the third highest of thirteen ratings, with an issuer credit rating of “a+” (Excellent), the fifth highest of twenty-one, and a stable outlook. Worth knowing for context: that A rating is the result of a December 2016 downgrade, when A.M. Best lowered the financial strength rating from A+ (Superior) and the long-term issuer credit rating from “aa-“, citing the growing share of reserves attributable to interest-sensitive annuity and universal life products and spread compression on earnings, while revising the outlook to stable from negative. The rating has been affirmed at A (Excellent) since. Ratings are reviewed periodically; confirm the current one with AM Best or the society.
Deciding Without Pressure
A life settlement is the sale of an in-force contract to an institutional buyer for more than surrender value and less than the death benefit, and eligibility turns mostly on the insured’s age and current health. Whole life is settled less often than universal life precisely because the guaranteed surrender value sets a high bar. No one can promise you qualify, and no one can name a figure before underwriting. What is achievable is a clean side-by-side of every number: net surrender value, reduced paid-up amount, extended term duration, remaining premium obligation, and any offers a licensed broker brings back.
One sequencing note specific to fraternal coverage: confirm the assignment question with the society before spending time in the settlement market, not after. If your certificate restricts assignment, that answer changes the entire analysis, and it costs one phone call to find out.
Frequently Asked Questions
Is a Modern Woodmen certificate different from a regular life insurance policy?
In substance it is life insurance, and the society’s own materials use “certificate (policy)” interchangeably. The difference is structural: Modern Woodmen is a fraternal benefit society, tax-exempt under Internal Revenue Code 501(c)(8), and coverage is tied to membership in the organization. Fraternal certificates can carry assignment or eligibility conditions ordinary policies do not, so confirm your certificate’s terms with the society before assuming it can be transferred.
How do I change ownership of a Modern Woodmen certificate?
The society instructs owners to complete its printable absolute assignment form, have the signature notarized, and mail it to the home office at 1701 1st Avenue, Rock Island, Illinois 61201, or P.O. Box 2005, Rock Island, Illinois 61204-2005. The notarization step cannot be handled by phone. Call the Service Center at 800-447-9811 or 309-558-3077 to confirm the current form and any additional requirements.
Is Modern Woodmen financially sound?
Modern Woodmen reports year-end 2025 assets of $18.64 billion, total surplus of $2.9 billion, certificate reserves of $10.8 billion and a solvency ratio of 118.2 percent. AM Best rates its financial strength A (Excellent) with an “a+” issuer credit rating and stable outlook. That A rating followed a December 2016 downgrade from A+ (Superior). Verify the current rating with AM Best before relying on it.
Should I surrender my whole life certificate instead of selling it?
That depends on the numbers. Surrendering pays the guaranteed net cash value and ends the death benefit permanently. Reduced paid-up and extended term elections keep some coverage without further premiums. A settlement is only worth considering if an actual offer clearly exceeds the net surrender value. Get all of those figures as of the same date before deciding.
Does Pine Lake buy Modern Woodmen certificates?
No. Pine Lake Life Solutions does not purchase policies or certificates and has no affiliation with, sponsorship from, or endorsement by Modern Woodmen of America. We offer a free, no-obligation review so you can compare your options with accurate figures and make your own decision.
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Related Reading
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- Sell My Modern Woodmen Term Policy
- Cash Value Loan Vs Surrender
- Change Of Ownership Life Insurance
- Carrier Anti Assignment Provisions
- Is A Life Settlement Right For You
- Sell My Massmutual 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.