Yes — a Nassau universal life policy can be sold, because any carrier’s policy can be sold if the policyholder and the policy qualify. The buyer acquires the contract itself; Nassau’s approval is not needed and the company plays no role in whether you sell. It simply records the ownership change once the sale closes.
Universal life is the policy type where sellers most often act out of frustration rather than choice. A UL policy you bought in the 1990s with a comfortable planned premium can, thirty years later, be demanding two or three times that amount just to stay in force. Nothing went wrong with the contract — that is how flexible-premium universal life behaves when interest crediting falls and the cost of insurance climbs with age.
Nassau Financial Group acquired The Phoenix Companies in 2016, so many UL policies serviced by Nassau today were issued by Phoenix Life or PHL Variable. Below is what that history means for you, and how buyers value a struggling UL contract.
In This Article
- The Phoenix Block, Nassau, and the PHL Variable Rehabilitation
- Why Your Premium Went Up on a Policy That Was Supposed to Be Flexible
- Do Not Let It Lapse Before You Check
- How Buyers Look at a Universal Life Contract
- The Documents That Decide the Price
- Timing and the Steps Involved
- Who Should and Shouldn’t Pursue This
- Frequently Asked Questions
The Phoenix Block, Nassau, and the PHL Variable Rehabilitation
Hartford-based Nassau Financial Group acquired The Phoenix Companies in 2016. That brought Phoenix Life Insurance Company and PHL Variable Insurance Company under the Nassau umbrella. Individual universal life was a core Phoenix product line, so a large share of Nassau-serviced UL policies carry Phoenix branding on the original contract.
One item every Nassau or Phoenix policyholder should verify: PHL Variable Insurance Company, a subsidiary in the Nassau group, was placed into rehabilitation in Connecticut in 2024. A rehabilitation proceeding is a court-supervised process run through the state insurance department, and such orders can temporarily restrict things like cash surrenders, policy loans, and ownership transfers while the plan is worked out. If your contract was issued by PHL Variable, confirm the current status of that proceeding and what it permits, as of 2026, with the company and the Connecticut Insurance Department before you make any move. Policies issued by other companies in the group are separate legal entities.
This matters more for universal life than for most other policy types, because UL owners are the ones most likely to want a loan, a partial withdrawal, or a surrender in a hurry. Ask the company directly, in writing, what transactions are currently available on your specific contract as of 2026. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau or its subsidiaries.
Why Your Premium Went Up on a Policy That Was Supposed to Be Flexible
A universal life policy is an account, not a savings plan with fixed rules. Premiums go in, interest is credited at a declared rate subject to a contractual minimum, and the carrier deducts monthly charges — administrative fees and, above all, the cost of insurance on the net amount at risk.
Cost of insurance rises with the insured’s age, and it rises steeply after the seventies. If the credited rate on your policy has been sitting near its guaranteed minimum for years while those deductions grew, the account value thins. Eventually the carrier sends the letter: pay substantially more or the policy will lapse. Owners in their seventies and eighties are being asked to fund a policy on a fixed retirement income, which is exactly the moment a settlement becomes worth investigating.
Do Not Let It Lapse Before You Check
This is the single most costly mistake in the entire market. A UL policy that lapses pays nothing to anyone. Every premium dollar paid over decades produces zero. A policy that is surrendered pays only the net cash surrender value, which on a depleted UL can be a small fraction of what the coverage is worth to a buyer.
Federal research (GAO-10-775) found that sellers in the secondary market typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value on average. Before you stop paying, get the policy reviewed. If you are inside a grace period, say so — timing becomes the priority. Read settlement vs. surrender for the comparison.
| Situation | What You Get | Better Option to Check First |
|---|---|---|
| Policy lapses for nonpayment | Nothing at all | Get a review before the grace period ends |
| You surrender the policy | Net cash surrender value only | Compare against a written settlement offer |
| You reduce the face amount | No cash; lower monthly deductions | Reasonable if you still need some coverage |
| Insured has a qualifying illness | Possible accelerated death benefit | Check the rider before shopping the policy |
| You sell the policy | Lump sum, typically 10–35% of face (GAO-10-775) | Requires the insured and policy to qualify |
How Buyers Look at a Universal Life Contract
An institutional buyer models the policy forward: what is the death benefit, how long is the insured expected to live, and what is the minimum premium stream needed to carry the contract to that point. The offer is what is left after discounting that math to today.
Two features help a UL policy price well. A relatively low minimum premium to keep it in force means less cash the buyer must feed it. And a large death benefit spreads fixed transaction costs across more value. Two features hurt: heavy cost-of-insurance charges near guaranteed maximums, and a big outstanding loan, which reduces the net death benefit. See what policies qualify.
The Documents That Decide the Price
For universal life, the in-force illustration is not optional — it is the whole pricing document. Request one from Nassau and ask specifically for the minimum-premium-to-endow-or-carry scenario as well as the current-planned-premium scenario, run on both current and guaranteed assumptions. The gap between those columns tells you how fragile the policy is.
Alongside it, gather your most recent annual statement (account value, surrender value, surrender charge if any, loan balance, current monthly deductions) and the policy cover page. Our guide to in-force illustrations explains how to read the columns without an actuary.
Timing and the Steps Involved
The typical arc runs 60 to 120 days:
- Free review from the policy cover page — days, no obligation.
- Documentation and underwriting — in-force illustration, medical records, life-expectancy estimates. Two to four weeks is normal, longer if physicians are slow.
- Offers — always in writing, always with the net-to-you figure spelled out.
- Contracts and escrow — funds held by an independent escrow agent, never released on a promise.
- Ownership change and funding — the carrier records the new owner; escrow pays you; a state rescission window typically follows.
Who Should and Shouldn’t Pursue This
A Nassau or Phoenix UL policy is a plausible candidate when the insured is in their senior years, the death benefit is $100,000 or more, the policy is past contestability, and the premiums have become a burden the family no longer wants to carry. Health changes since issue generally increase the offer, because the buyer expects a shorter premium-paying period.
It is not the right move when the coverage is still needed and affordable, when a beneficiary genuinely depends on the death benefit, or when the face amount is too small to attract bids. And if the insured has a qualifying terminal or chronic illness, check whether the contract has an accelerated death benefit rider before shopping the policy — that may be faster and simpler.
Tax treatment of settlement proceeds depends on your basis and the policy’s values, and there are reporting rules. Talk to your own CPA or tax attorney; nothing here is tax advice.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau Financial Group, Nassau Life Insurance Company, Phoenix Life, or PHL Variable. We work with policies of $100,000 or more in death benefit. For a free, no-obligation policy review, send the policy cover page or call (305) 209-7183. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Why is Nassau asking me for a much higher premium than I planned?
Universal life deducts monthly charges, including a cost of insurance that rises with the insured’s age, from the policy’s account value. When credited interest is low and those deductions grow, the account thins and the carrier requests more premium to prevent a lapse. Request an in-force illustration to see exactly how long the policy lasts at each payment level.
Can I sell the policy instead of paying the increase?
Often yes, if the insured and the policy qualify. That is one of the most common reasons universal life owners come to the secondary market. Get the review started before the grace period runs out, because a lapsed policy is worth nothing to anyone.
Does Nassau need to approve the sale?
No. The carrier is not a party to your decision and its permission is not required. After the sale closes, Nassau records the new owner and beneficiary.
My contract says Phoenix. Is that a problem?
No. Nassau Financial Group acquired The Phoenix Companies in 2016, so Phoenix Life and PHL Variable policies are serviced within the Nassau group. Check the declarations page for the issuing company and confirm current servicing details with the carrier as of 2026.
What does the PHL Variable rehabilitation mean for a sale?
PHL Variable was placed into rehabilitation in Connecticut in 2024. Court-supervised rehabilitation orders can restrict transactions such as surrenders, loans, and ownership changes while a plan is developed. If PHL Variable issued your policy, confirm the current status and permitted transactions with the company and the Connecticut Insurance Department before proceeding.
Does a policy loan reduce what I receive?
Yes. An outstanding loan and its accrued interest are typically paid off out of the sale proceeds at closing, and you receive the difference. Get a written payoff figure from the carrier early so you can evaluate offers on a net basis.
How long does a universal life settlement take?
Usually 60 to 120 days from first review to funded payment. Collecting the in-force illustration and medical records is the slowest stage, and the carrier’s ownership-change processing adds time at the end.
What should I send first?
Just the policy cover page showing the insurer, policy number, face amount, and issue date. That is enough for a free, no-obligation read on whether the policy is a realistic candidate. Call (305) 209-7183 if a lapse deadline is near.
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Related Reading
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- How Much Can I Get For My Life Insurance Policy
- Sell My Nassau Life Whole Life Policy
- Sell My Nassau Life Guaranteed Universal 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.