Yes — a Nassau variable universal life policy can be sold in a life settlement, because any carrier’s policy can be sold when the policyholder and the policy qualify. The buyer acquires the contract from you. Nassau’s permission is not needed and the company has no vote in the matter; it records the ownership change after closing.
VUL has a moving part no other policy type has: the cash value sits in separate-account subaccounts that rise and fall with the markets. The surrender value on your last statement is a snapshot, not a fixed number, and that makes VUL owners misjudge both what they would get by surrendering and what the policy is worth to a buyer.
Nassau Financial Group acquired The Phoenix Companies in 2016. Variable products were often issued through PHL Variable Insurance Company, which makes the verification step below especially relevant for VUL owners.
In This Article
- Check Which Company Issued Your VUL
- Your Surrender Value Is a Moving Target
- M&E Charges and the Cost-of-Insurance Squeeze
- What the Buyer Is Buying (Hint: Not Your Funds)
- Documents — and the Illustration Request That Matters
- Comparing the Exits
- Timing, Escrow, and Who Qualifies
- Frequently Asked Questions
Check Which Company Issued Your VUL
Start with the declarations page. Variable life contracts in this family were commonly issued by PHL Variable Insurance Company, with other lines issued by Phoenix Life Insurance Company. Nassau Financial Group acquired The Phoenix Companies in 2016 and services those blocks today.
Verify one thing before you act: PHL Variable Insurance Company, part of the Nassau group, was placed into rehabilitation in Connecticut in 2024. Rehabilitation is a court-supervised process overseen by the state insurance department, and such orders can temporarily limit transactions like surrenders, policy loans, and changes of ownership. If PHL Variable issued your contract, confirm the current status of the proceeding and what it permits, as of 2026, with the company and the Connecticut Insurance Department. Other companies in the group are separate legal entities.
For a VUL owner this is a practical matter, not a technicality, because your likely next steps — a partial withdrawal, a loan, a surrender, or a transfer of ownership — are exactly the transactions such an order can touch. Ask the company in writing what is currently available on your contract as of 2026, and confirm the issuing company’s current financial-strength rating. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau, Phoenix Life, or PHL Variable.
Your Surrender Value Is a Moving Target
Inside a VUL, premium that survives the deductions is invested in subaccounts you chose — stock funds, bond funds, a fixed or money market option. Their value floats daily. A quote you were given in the spring may be materially different by the fall, and neither number is wrong.
The consequence people miss is that the account value is also what pays the policy’s internal charges each month. A prolonged downturn does not just shrink your statement balance; it shrinks the buffer keeping the policy alive. Our page on cash surrender value explains what the carrier would actually pay you today.
M&E Charges and the Cost-of-Insurance Squeeze
A VUL carries stacked costs. Mortality and expense risk charges (M&E) are assessed against the separate account. Underneath sit fund-level management fees. On top sit administrative charges and the cost of insurance, which is charged against the net amount at risk and rises with the insured’s age.
In an underfunded VUL the cost of insurance becomes the dominant force. Charges outrun contributions, the account value declines, and the net amount at risk grows — which raises the charge again. That loop is why owners in their late seventies suddenly receive a demand for a much larger premium on a policy that looked fine a decade ago. It is also the most common reason a VUL comes to the secondary market.
| Charge or Feature Inside a VUL | What It Does | Why a Buyer Cares |
|---|---|---|
| Subaccount performance | Raises or lowers account value | Sets your surrender floor, not the purchase price |
| M&E risk charge | Assessed against the separate account | Ongoing drag on the account value |
| Fund management fees | Deducted at the fund level | Another layer of cost the buyer inherits |
| Cost of insurance | Rises with the insured’s age | Largest driver of future premium the buyer must pay |
| Surrender charge (early years) | Reduces what surrender would pay | Makes surrendering even less attractive |
What the Buyer Is Buying (Hint: Not Your Funds)
Sellers assume a strong subaccount balance means a strong offer. It usually does not work that way. Once ownership transfers, the buyer controls the contract and can reallocate the investments however it likes. What the buyer paid for is the death benefit, the insured’s estimated life expectancy, and the premium load required to carry the policy.
A large account balance mainly raises the surrender value you are giving up, which is the floor an offer must clear. Meanwhile a thinned-out VUL with a large death benefit and a qualifying insured can price well, because the buyer is valuing the contract’s economics rather than its balance. See what policies qualify.
Documents — and the Illustration Request That Matters
For a variable policy, ask Nassau for an in-force illustration run at more than one assumed rate of return, including a conservative or guaranteed assumption. The difference between those columns tells you how many years of runway the policy really has if markets disappoint. That single document does more to clarify the decision than anything else.
Also gather your latest annual statement (account value, surrender value, any surrender charge, loan balance, subaccount allocation, current monthly deductions) and the policy cover page. The cover page alone is enough to begin a free review. Our guide to reading an in-force illustration covers the columns.
Comparing the Exits
Realistic options for a VUL owner: keep paying and hope returns improve; reduce the face amount to lower the monthly cost of insurance; surrender for the current net cash value; consider a 1035 exchange into a different contract; or sell the policy. Federal research (GAO-10-775) found sellers typically received about 10% to 35% of face value and roughly 4 to 8 times cash surrender value, though a VUL with a healthy balance will show a lower multiple simply because the denominator is larger.
An outstanding loan is typically paid off from the proceeds at closing, so ask for both the gross offer and your net figure. Tax treatment depends on your basis and the policy’s values, and there are reporting rules — that conversation belongs with your own CPA or tax attorney.
Timing, Escrow, and Who Qualifies
Plan on roughly 60 to 120 days. Free review in days; two to four weeks of documentation and life-expectancy underwriting; then offers, contracts, escrow, and the carrier’s ownership change. Insist on independent escrow — funds released only when the carrier confirms the transfer in writing — and ask about your state’s rescission window.
The general profile buyers want: an insured in their senior years, a death benefit of $100,000 or more, a policy past contestability, and health changes since issue. If the coverage is still needed and affordable, or a beneficiary depends on it, keeping the policy is the better answer. Is a life settlement worth it lays out both sides.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau Financial Group, 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
Can a VUL be sold when its value changes every day?
Yes. Market movement affects your surrender value, not your right to sell or the buyer’s valuation method. Buyers price the death benefit, the insured’s life expectancy, and the premiums needed to carry the policy, so a fluctuating balance does not disqualify anything.
Does Nassau have to consent?
No. The carrier is not a party to your decision and its permission is not required. Nassau records the new owner and beneficiary after the transaction closes.
My VUL was issued by PHL Variable. Does that affect a sale?
It may affect the mechanics. PHL Variable was placed into rehabilitation in Connecticut in 2024, and court-supervised rehabilitation orders can restrict transactions such as surrenders, loans, and ownership changes. Confirm the current status and what is permitted with the company and the Connecticut Insurance Department before proceeding.
Why does my policy need more premium than the illustration showed?
Original illustrations assumed a rate of return. If actual subaccount returns fell short while the cost of insurance rose with age, the account value thins and the carrier requests more premium to prevent a lapse. Request a fresh in-force illustration at conservative assumptions to see the real runway.
Will the buyer keep my fund choices?
Generally no. After ownership transfers, the buyer controls the contract and may reallocate the subaccounts. That has no effect on the amount you were paid, which is fixed at closing.
Is a 1035 exchange a better idea than selling?
It depends on your goal. An exchange moves value into another insurance or annuity contract without an immediate taxable event but puts no cash in your hand. A settlement ends the coverage and produces a lump sum. Compare both with a professional who knows your full situation.
How much could I receive?
Federal research (GAO-10-775) found sellers typically received about 10% to 35% of face value, or roughly 4 to 8 times cash surrender value. A VUL with a large account balance shows a smaller multiple because the surrender floor is already high. Only a review of your contract gives a realistic figure.
What is the first step?
Send the policy cover page for a free, no-obligation review, or call (305) 209-7183. If the policy looks viable, the next step is an in-force illustration from Nassau at multiple assumed rates of return.
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
- Cash Surrender Value Life Insurance
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Sell My Nassau Life Guaranteed Universal Policy
- Sell My Nassau Life 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.