Yes, a North American Company for Life and Health indexed universal life policy can be sold in a life settlement, and you do not need the carrier’s approval. The buyer purchases the contract, takes over the premiums, and becomes the beneficiary. The insurer’s only involvement is recording the ownership change at the end. What determines whether a sale is realistic is the insured’s age and health, the size of the death benefit, and how expensive the policy has become to carry.
North American Company for Life and Health Insurance dates to 1886 in Chicago and is a member company of the Sammons Financial Group, whose parent Sammons Enterprises is employee-owned through an ESOP rather than publicly traded. There was no demutualization that handed shares to policyholders, and as of 2026 the company continues to issue new individual life insurance, with indexed universal life among the products it is best known for. Verify the servicing company for your specific contract, the current A.M. Best financial strength rating, and the policyholder service number with the carrier directly, since blocks can be reinsured and ratings are reviewed regularly.
Most of this page is about one thing: understanding what your IUL is actually doing, as opposed to what the sales illustration said it would do. That difference is usually why an owner ends up here. Pine Lake Life Solutions is not affiliated with North American or the Sammons Financial Group, and this is educational information, not legal, tax, or investment advice.
In This Article
- The Sale Does Not Require the Carrier’s Blessing
- How Index Crediting Actually Works
- Renewal Rates Are the Part Nobody Explained
- Reading the Annual Statement Line by Line
- What Moves the Offer on an IUL
- Documents to Gather
- From Cover Page to Funded Payment
- Who Qualifies, and What to Do Next
- Frequently Asked Questions
The Sale Does Not Require the Carrier’s Blessing
Grigsby v. Russell, decided by the U.S. Supreme Court in 1911, held that a life insurance policy is transferable personal property. That case is why a secondary market for policies exists, and it applies to every insurer and every product design equally.
The carrier enters only at closing. Once the purchase agreement is signed and funds are with an independent escrow agent, a change of ownership or absolute assignment and a beneficiary change go to the service center, the carrier records them, and escrow releases your money. Request the current ownership change packet from the policyholder service line printed on your premium notice, and confirm the 2026 requirements, including notarization and whether an irrevocable beneficiary must sign off.
How Index Crediting Actually Works
An IUL does not invest in the stock market. Premiums net of charges go into the insurer’s general account, and the insurer buys options to fund an interest credit tied to the movement of an index. Money is usually placed into segments, each with its own start date and its own crediting term, most commonly one year measured point to point.
At the end of a segment term, the index change is measured and a credit is applied, subject to three levers. The cap sets the maximum credit. The participation rate sets what share of the index gain is counted. The floor, typically zero percent, prevents a negative credit. Understand that a zero-percent floor means no interest credited, not no loss. Monthly charges still come out of the account value in a flat year, so the account value can fall even when the index is protected.
Renewal Rates Are the Part Nobody Explained
Caps and participation rates are generally guaranteed only for the current segment, not for the life of the policy. Insurers can and do reset them at renewal, subject to contractual minimums that are often far below the rates in place when the policy was sold. That is normal product design, not misconduct, but it is the mechanism behind most disappointed IUL owners.
Find your contract’s guaranteed minimum cap and guaranteed minimum participation rate, then compare them to the current declared rates on your annual statement. The distance between those two numbers is the room the insurer has to move. If the original illustration assumed a steady credit at a cap that has since been reduced, projected values were never going to be met. Ask the service center for the declared rate history on your policy if it is available as of 2026.
Reading the Annual Statement Line by Line
Four numbers on the statement tell the story. Interest credited for the year shows what the index strategy actually delivered. Total monthly deductions show the cost of insurance and expense charges taken out. Accumulated value shows where you stand. Net surrender value shows what the carrier would pay if you walked away today, after any surrender charge.
Now compare the accumulated value to the same policy year on your original illustration. If actual is well below projected, the policy will need more premium than planned, because the cost of insurance is charged on the net amount at risk and that amount grows as the account value falls. Request an in-force illustration at guaranteed maximum charges and guaranteed minimum crediting, solving for the premium needed to reach age 100. That worst-case run is what a buyer models, and it is the honest picture of your policy’s cost.
| IUL Term | What It Means | Why It Matters to a Buyer |
|---|---|---|
| Cap rate | Maximum interest credited in a segment term | Can be lowered at renewal, so buyers model conservatively |
| Participation rate | Share of the index gain that is credited | Another non-guaranteed lever the insurer controls |
| Floor | Minimum credit, usually zero percent | Prevents negative credit but not charge-driven value loss |
| Segment | A dated bucket of money with its own crediting term | Explains why credits appear on staggered dates |
| Net amount at risk | Death benefit minus account value | The base for cost of insurance charges, which rise with age |
| Guaranteed minimum cap | The lowest cap the contract permits | Defines the worst case a buyer must underwrite |
What Moves the Offer on an IUL
Buyers price four inputs: the insured’s life expectancy, the death benefit, the cost of carrying the policy year after year, and the current cash value. Health carries the most weight, which is why a buyer’s underwriter orders medical records and commissions independent life-expectancy estimates.
On indexed universal life specifically, buyers discount the index story heavily. They cannot control future caps, so they model conservative crediting and focus on the contractual charge structure. Two policies with identical face amounts can price very differently based on per-thousand charges alone. Market-wide, sellers have generally received in the range of 10 to 35 percent of face value, and the federal GAO study GAO-10-775 found settlements paying roughly four to eight times cash surrender value. Those are ranges across many transactions, not a quote.
Documents to Gather
Send the policy cover page or specifications page first, showing the insurer, policy number, face amount, issue date, and insured. That is all it takes for a free, no-obligation policy review.
If it advances, request from the service center: the most recent annual statement including the crediting summary and monthly deduction detail, an in-force illustration at both current and guaranteed assumptions with premiums solved to age 95 and 100, a current loan payoff figure if applicable, and the change-of-ownership packet. If you can find the original sales illustration in your files, keep it handy. It is not required, but it makes the drift obvious in one glance. Medical records are ordered later by the buyer’s underwriter with your written HIPAA authorization.
From Cover Page to Funded Payment
The sequence is the same across the industry. Free review, then a full application with HIPAA authorization, then written offers, then contracts with funds placed in independent escrow, then the ownership change recorded by the carrier, then release of your payment. Most states then provide a rescission window during which you may unwind the sale.
Allow 60 to 120 days. The delays are almost always medical records and carrier paperwork, so order the in-force illustration on day one. If a broker is involved, insist on seeing the gross offer and the net offer after commissions in the same written document, and never transfer ownership before escrow is funded. See how the process works for the full walkthrough.
Who Qualifies, and What to Do Next
The common profile is an insured around 65 or older, or younger with significant health conditions, a death benefit of $100,000 or more, and a policy past its contestability period. Large outstanding loans reduce net proceeds. A policy that is still needed and still affordable is usually better kept, and options like lowering the death benefit or changing the premium pattern may solve the problem without any sale at all.
To start, send the policy cover page for a free review, or call (305) 209-7183. If your Sammons-family coverage sits with the sibling company, see our guide to selling a Midland National indexed universal life policy. For other North American designs, see selling a North American GUL policy.
Frequently Asked Questions
Do I need permission from North American to sell my IUL policy?
No. The Supreme Court’s 1911 decision in Grigsby v. Russell established that a life insurance policy is transferable personal property. The buyer purchases the contract from you, and the carrier simply records the new owner and beneficiary after closing.
Is my indexed universal life policy invested in the stock market?
No. Premiums go into the insurer’s general account, and the insurer uses options to fund an interest credit linked to an index. You do not own shares and you do not receive dividends from the index. Credits are limited by a cap and a participation rate and protected by a floor, usually zero percent.
Why did my account value drop in a year when the index was flat?
A zero-percent floor means no interest was credited, not that nothing was deducted. Monthly cost of insurance and expense charges still come out of the account value, so a flat index year usually produces a net decline. Several such years in a row can put a policy far behind its illustration.
Can the insurer lower my cap rate?
Generally yes, at the start of each new segment, down to the guaranteed minimum stated in your contract. That is standard IUL design. Compare the current declared cap on your annual statement to the guaranteed minimum in the contract to see how much room exists.
What in-force illustration should I request?
Ask for two runs: one at current charges and crediting, and one at guaranteed maximum charges with guaranteed minimum crediting, each solving for the premium needed to carry the policy to age 95 and age 100. The guaranteed run is what a careful buyer models. The illustration is usually free.
How much could my policy be worth?
It depends on age, health, death benefit, and cost to carry. Across the market, sellers have generally received in the range of 10 to 35 percent of face value, and the GAO study GAO-10-775 found settlements paying roughly four to eight times cash surrender value. A free review is the only way to know whether your policy draws interest.
Is North American the same company as Midland National?
They are two separate insurers that share a parent, both members of the Sammons Financial Group. Families frequently mix them up. Check the cover page of your contract for the issuing company, because every form and illustration request must go to the correct entity.
How do I begin?
Send the policy cover page showing the insurer, policy number, face amount, and issue date for a free, no-obligation policy review. If you would rather ask questions first, call (305) 209-7183.
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Related Reading
- What Policies Qualify For Life Settlement
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- Education Center
- Sell My Midland National Indexed Universal Policy
- Sell My North American 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.