Yes — a Nassau Life survivorship (second-to-die) policy can be sold in a life settlement when the contract and both insureds qualify; the policy is transferable property belonging to its owner, and the carrier’s approval is not required. On this particular block, however, one preliminary step matters more than usual: identify exactly which legal entity issued your contract, because the answer can affect servicing and, in some cases, the policy’s standing.
Nassau Financial Group was formed in 2015 and acquired The Phoenix Companies in 2016, bringing Phoenix Life Insurance Company and PHL Variable Insurance Company into the group; the retail life brand was subsequently presented as Nassau Life. Many second-to-die contracts in this block were originally issued under the Phoenix name. Separately, PHL Variable Insurance Company has been the subject of Connecticut regulatory proceedings, including reporting in 2024 of a court-supervised rehabilitation — a situation that can affect policy administration and benefit treatment. Do not rely on this page or any secondhand summary for that: confirm the current status of your issuing entity with the Connecticut Insurance Department and with the servicing company as of 2026.
With that established, the rest of this guide explains how buyers value joint-life contracts, what to demand from the service center, why the first death changes the math, and when keeping or surrendering is the better answer. Pine Lake Life Solutions is not affiliated with Nassau Financial Group, Nassau Life or The Phoenix Companies. Nothing here is legal, tax or investment advice.
In This Article
- Identify the Issuing Entity, Then Confirm Its Status
- Cost of Insurance History on Legacy Universal Life
- How Buyers Value a Second-to-Die Contract
- When the Coverage Has Outlived Its Purpose
- The First Death Changes Everything About Value
- Trust Ownership, Contestability, and Minimum Size
- How to Get a Free Policy Review
- Frequently Asked Questions
Identify the Issuing Entity, Then Confirm Its Status
Open the policy and find the company named as the insurer on the contract itself — not the brand in the marketing material, not the name on the envelope. Then compare it with the company named on your latest premium notice. Write both down.
If the issuing entity is one that is subject to regulatory proceedings, that fact belongs at the front of your analysis, not the back. Rehabilitation and similar proceedings can involve court supervision of payments, moratoriums on certain transactions, or changes to how benefits are administered while the process runs. State guaranty associations exist as a backstop with statutory limits that vary by state and benefit type. The authoritative sources are your state insurance department and the court-appointed administrator, not an article.
Practically, ask three questions in writing: Is my policy in force and current? Is there any restriction on changing ownership or beneficiary right now? What is the current process and timeline for obtaining an in-force illustration? A buyer will need the same answers. See how to confirm a policy’s status.
Cost of Insurance History on Legacy Universal Life
Owners of older universal life contracts across this block should look closely at charge history. Cost of insurance increases on legacy universal life blocks were an industry-wide issue in the 2010s and generated litigation involving multiple carriers. Whether or not your specific contract was affected, the question is worth asking directly.
Request the monthly deduction history and ask, in writing, whether any cost of insurance rate change has been implemented or announced for your product series. Then ask for the in-force illustration at both current and guaranteed assumptions plus the premium required to carry the policy to the later of the two life expectancies. On a second-to-die contract, charges continue for as long as either insured is alive, which is exactly why an increase compounds so painfully on these designs.
If the illustration projects the account value exhausting while both insureds are still alive, the real decision is not “sell versus keep” but “sell versus lose the policy for nothing.” Read universal life cost increases and how cost of insurance works.
How Buyers Value a Second-to-Die Contract
Survivorship coverage pays nothing at the first death, so a buyer must project when both insureds will have died. That requires life expectancy reports on each, blended into a joint-and-last-survivor curve, then a projection of premiums across that curve and a discount of the eventual benefit back to present value.
The joint curve runs long, which is why survivorship premiums were low at issue and why offers are lower at sale. More premium years, heavier discounting. Expect the low end of any published payout range, since those ranges largely reflect single-life experience.
Bid depth is thinner too — a portion of institutional funders do not underwrite joint mortality at all. Fewer bidders means less competitive pressure on price, so a survivorship case should be shopped deliberately rather than closed on the first quote. See how buyers price a policy and comparing offers.
| Question | Why it matters | Authoritative source |
|---|---|---|
| Which entity issued my policy? | Determines servicing and legal status | The policy contract itself |
| Is that entity subject to regulatory proceedings? | Can affect administration and transactions | State insurance department |
| Is my policy in force and current? | Lapsed coverage cannot be sold | Servicing company, in writing |
| Any restriction on ownership changes now? | A settlement requires an ownership transfer | Servicing company or court administrator |
| Has cost of insurance changed? | Raises carrying cost and lapse risk | Servicing company, in writing |
| What protection exists if the insurer fails? | Guaranty association limits vary | Your state guaranty association |
When the Coverage Has Outlived Its Purpose
Second-to-die policies fund something that happens at the second death. Common ways the need disappears: federal estate tax exemption levels moved and the estate is no longer taxable (verify current thresholds with a tax advisor as of 2026, and check state estate or inheritance taxes, which several states impose at far lower levels); the ILIT now exists purely to administer a policy with no remaining job; a family business succession or buy-sell agreement has been completed; or the premium has become unsustainable on a fixed income.
Where the pressure is care costs, the timing mismatch is the whole problem — the benefit arrives at the second death, the bills arrive monthly. See options when entering a nursing home. Even then, keeping the policy remains the right answer for some families, which is why every option deserves a number next to it.
The First Death Changes Everything About Value
Once one insured dies, the contract behaves like a single-life policy on the survivor. One mortality to underwrite, a nearer expected payout, less premium for a buyer to fund — and often a substantially better offer on the same face amount.
Report the death to the servicing company, request an updated in-force illustration, and ask whether the contract contains a policy split option or a provision triggered by estate tax law changes. Then compare paths. Lapsing a survivorship policy after a first death, on the theory that it “didn’t pay,” surrenders value at the moment the asset is most marketable. Read the first-death guide.
Trust Ownership, Contestability, and Minimum Size
If an irrevocable life insurance trust owns the policy, the trustee sells it: the trustee signs, the trust receives proceeds, and the trust document controls distribution. Trustees should document carrying cost, surrender value confirmed in writing, offers obtained and the reasoning behind the decision, and should check the instrument for beneficiary notice, consent or court-approval requirements. Expect requests for the trust agreement and amendments, trustee authority, the trust EIN and the Crummey notice history.
Two universal gates apply. The policy must be past its two-year contestability period, measured from issue or from any reinstatement. And face amounts below $100,000 rarely draw institutional interest; small final-expense-scale contracts from any carrier almost never do. Where a policy qualifies, GAO research (GAO-10-775) found sellers typically received about 10% to 35% of face value, averaging roughly four to eight times cash surrender value, with survivorship cases at the low end. More: selling an ILIT-owned policy.
How to Get a Free Policy Review
Send the policy cover page: issuing entity, policy number, face amount, issue date and both insureds’ names. From that page alone a specialist can tell you whether the contract is a realistic candidate — and if the issuing entity’s status complicates matters, you should be told that plainly rather than shepherded into a process that cannot close.
A live case runs roughly 60 to 120 days: HIPAA authorizations and medical records for both insureds, independent life expectancy reports, the in-force illustration, written offers with intermediary compensation disclosed, contracts, and independent escrow holding funds until the ownership change is recorded. Most states then allow a rescission window.
To start a free, no-obligation review, send the cover page or call Pine Lake Life Solutions at (305) 209-7183. Pine Lake is not affiliated with Nassau Life or Phoenix; this page is educational information only.
Frequently Asked Questions
My policy says Phoenix but the correspondence says Nassau. Which is correct?
Both can be. Nassau Financial Group acquired The Phoenix Companies in 2016 and the retail life brand was presented as Nassau Life, so legacy Phoenix contracts are serviced under the newer name. The legal entity named on your contract is what matters for illustrations and forms; confirm it in writing as of 2026.
I have heard PHL Variable is in rehabilitation. What does that mean for me?
Rehabilitation is a court-supervised process that can affect how a company administers policies while it runs. Do not rely on secondhand summaries. Contact the Connecticut Insurance Department and the servicing company directly to confirm the current status and any restrictions that apply to your specific contract.
Can a policy still be sold if the issuing company is in a regulatory proceeding?
It depends on the proceeding and any restrictions on ownership changes, which is why the status question comes first. A responsible review will tell you plainly if the case cannot realistically close rather than starting a process that stalls. Confirm restrictions in writing before signing anything.
What should I ask about cost of insurance charges?
Request the monthly deduction history and ask in writing whether any cost of insurance rate change has been implemented or announced for your product series. On a second-to-die contract those charges continue while either insured is alive, so an increase compounds quickly.
Why are survivorship offers lower than single-life offers?
The benefit is paid only after both insureds die, so buyers model a joint-and-last-survivor curve, fund premiums for longer, and discount the payout from further in the future. Fewer institutional buyers underwrite joint mortality, so there is also less bidding competition.
Does the first death improve the value?
Usually, and often significantly. The contract becomes economically a single-life policy on the survivor, which buyers underwrite more readily. Report the death, request an updated in-force illustration, and get the policy reviewed before surrendering or letting it lapse.
Who signs if a trust owns the contract?
The trustee signs as seller and the trust receives the proceeds, distributed under the trust terms. The trustee should document the analysis and confirm whether beneficiary notice, consent or court approval is required by the trust instrument.
How do I begin?
Send the policy cover page listing the issuing entity, policy number, face amount, issue date and both insureds’ names. That is enough for a free, no-obligation assessment. Questions can be directed to (305) 209-7183.
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
- Can I Sell A Survivorship Life Policy
- Survivorship Policy First Death
- Universal Life Cost Increases
- What Is Cost Of Insurance
- How To Find Out If A Policy Still Exists
- Sell Ilit Trust Owned Policy
- How Life Settlement Buyers Price A Policy
- How To Compare Two Life Settlement Offers
- Entering Nursing Home Options
- Buy Sell Agreement Policy Unneeded
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.