Yes, you can sell a North American Company for Life and Health universal life policy in a life settlement, and you do not need the carrier’s approval to do it. Universal life is the most commonly settled policy type in the entire secondary market, largely because of one design feature: the cost of insurance is deducted from the account value every month and rises as the insured gets older. A policy that felt cheap at 55 can become punishing at 78, and that is exactly the moment owners start asking what the contract is worth to someone else.
North American Company for Life and Health Insurance dates to 1886 in Chicago and is today a member company of the Sammons Financial Group, whose parent Sammons Enterprises is employee-owned through an ESOP rather than publicly traded. As of 2026 the company still issues new individual life insurance rather than operating purely in runoff, and there was no demutualization that distributed shares to policyholders. Confirm the current servicing arrangement, A.M. Best rating, and policyholder service number with the carrier directly before relying on any of it, since blocks can be reinsured and ratings are reviewed regularly.
This guide walks through how universal life is actually priced by buyers, why the in-force illustration is the single most important document you will request, and what the process looks like from cover page to funded payment. Pine Lake Life Solutions is not affiliated with North American or the Sammons Financial Group, and nothing here is legal, tax, or investment advice.
In This Article
- The Right to Sell Does Not Depend on the Insurer
- Cost of Insurance Is the Clock Running in the Background
- The In-Force Illustration Is the Document That Matters
- What a Buyer Is Actually Pricing
- Documents to Gather Before You Start
- Death Benefit Option A or Option B Changes the Numbers
- How the Sale Works, Step by Step
- Who Qualifies, and What to Do Next
- Frequently Asked Questions
The Right to Sell Does Not Depend on the Insurer
In 1911 the U.S. Supreme Court decided Grigsby v. Russell and held that a life insurance policy is transferable personal property, the same as a bond or a deed. Every life settlement traces back to that holding. It applies to a policy issued in 1988 as squarely as to one issued last year, and no carrier can write it out of a contract.
Practically, the carrier appears only at the end. After the purchase agreement is signed and funds are in escrow, a change of ownership or absolute assignment form goes to North American’s service center along with a beneficiary change. The service center records it and confirms in writing, and escrow releases your payment. Request the current form directly from the policyholder service line printed on your premium notice, and verify in 2026 whether notarization or a specific witness is required, since carriers update these requirements.
Cost of Insurance Is the Clock Running in the Background
Universal life splits your premium into two buckets. Part covers monthly charges. The rest accumulates in an interest-bearing account value. The largest monthly charge is the cost of insurance, calculated on the net amount at risk, which is the death benefit minus the account value, multiplied by a per-thousand rate that climbs steeply with the insured’s age.
That formula creates a trap that catches thousands of policies. If the account value shrinks, the net amount at risk grows, so the charge grows, which shrinks the account value further. Once that spiral starts in the late seventies or eighties, the premium needed to keep the policy alive can multiply. Many owners discover this only when a lapse warning arrives. A settlement is often the alternative to letting decades of paid premiums evaporate at exactly the moment the coverage is closest to paying out.
The In-Force Illustration Is the Document That Matters
An in-force illustration is a projection the carrier runs on your existing policy, showing account value, surrender value, and the premium required going forward. Ask North American’s service center for two versions: one at current charges and crediting, and one at guaranteed maximum charges and the guaranteed minimum interest rate. Ask specifically for the minimum premium required to carry the policy to age 95 and to age 100.
Those two runs bracket reality. The current-assumptions run is the optimistic case. The guaranteed run is the worst case the contract permits, and it is what a careful buyer models. If the guaranteed run shows the policy lapsing in six years without a large premium increase, that is the truth about your policy, and it is better to learn it now than after another five years of payments. The illustration is normally free and takes a few business days.
What a Buyer Is Actually Pricing
A buyer values your policy as future premiums paid out against a death benefit received at an uncertain date. The bigger the death benefit, the shorter the estimated life expectancy, and the cheaper the policy is to carry, the higher the offer. That is the whole model. Health drives life expectancy, which is why the buyer’s underwriter orders medical records and commissions estimates from independent life-expectancy firms.
Across the market, sellers have generally received something in the range of 10 to 35 percent of the death benefit, and the federal GAO study GAO-10-775 found settlements paying roughly four to eight times the cash surrender value. Universal life often shows a strong multiple because its surrender value tends to be modest relative to the face amount, particularly on older policies where charges have eaten into the account value. That is an average, not a promise. Some policies draw no offer.
| Illustration Scenario to Request | What It Assumes | What It Tells You |
|---|---|---|
| Current charges, current crediting, current premium | Today’s non-guaranteed rates continue | The optimistic case for how long coverage lasts |
| Guaranteed maximum charges, minimum crediting | The worst outcome the contract permits | The case a careful buyer models |
| Minimum premium to carry to age 95 | Coverage held to a common target age | Your real annual cost to keep the policy |
| Minimum premium to carry to age 100 | Coverage held to maturity | The buyer’s projected long-run carry cost |
| Solve for zero additional premium | No further payments made | The date the policy would lapse if you stop |
Documents to Gather Before You Start
The entry ticket is one page: the policy cover page or specifications page showing the issuing company, policy number, face amount, issue date, and insured. Send that for a free policy review at no cost and no obligation.
If the policy looks like a candidate, gather four more items. The most recent annual statement, which lists account value, surrender value, and the charges deducted over the past year. The in-force illustration at both current and guaranteed assumptions. A current loan payoff figure if there is a loan. And the carrier’s change-of-ownership packet, which you can request at the same time as the illustration to save weeks. Medical records come later, ordered by the buyer’s underwriter with your written HIPAA authorization.
Death Benefit Option A or Option B Changes the Numbers
Most universal life contracts were issued with one of two death benefit structures. Option A pays a level death benefit, so as the account value grows, the net amount at risk shrinks and the monthly cost of insurance charge eases. Option B pays the face amount plus the account value, so the death benefit grows but the net amount at risk stays high and the charges stay heavy.
Your cover page or annual statement will name the option in force. If you are carrying Option B on an old policy and no longer need the growing benefit, switching to Option A is sometimes possible and can reduce charges, though carriers set their own rules and a change may require evidence of insurability. This is worth understanding before a sale, because it affects both what you would pay to keep the policy and what a buyer projects paying. Ask the service center what your contract allows as of 2026.
How the Sale Works, Step by Step
First, the free review from the cover page. Second, a full application with HIPAA authorization so records and life-expectancy estimates can be ordered. Third, the written offer. Always ask for gross and net figures if a broker is involved, so commission is visible. Fourth, contracts and independent escrow. Fifth, the ownership change goes to the carrier, the carrier confirms, escrow releases your money, and most states then allow a rescission window during which you can unwind the sale.
Expect 60 to 120 days. The slow parts are physician offices returning records and the carrier producing the illustration, so start both early. Never transfer ownership against a promise of later payment. For a side-by-side of the exits available to you, see life settlement versus surrender.
Who Qualifies, and What to Do Next
Buyers generally want an insured around 65 or older, or younger with meaningful health impairments, a death benefit of $100,000 or more, and a policy past its contestability period. Heavy loans reduce the net proceeds. A policy that is still cheap to carry and still needed by the family usually should not be sold at all, and a review will say so.
Send the policy cover page for a free, no-obligation review, or call (305) 209-7183. If your North American coverage is a different product, our guides to selling a North American guaranteed universal life policy or a North American indexed universal life policy cover those designs.
Frequently Asked Questions
Can I sell my universal life policy without telling North American first?
You do not need the carrier’s permission, and the sale is legal under Grigsby v. Russell, the 1911 Supreme Court decision treating a policy as transferable property. You will interact with the service center anyway, because you need an in-force illustration up front and the ownership change must be recorded at closing.
Why does my premium keep going up when the policy says universal life is flexible?
Flexible premium does not mean fixed cost. The monthly cost of insurance is charged against the net amount at risk and rises with the insured’s age. If the account value falls, that charge grows, which is why older universal life policies often need much larger payments to stay in force.
What exactly should I ask the service center for?
Ask for an in-force illustration at current charges and at guaranteed maximum charges, including the minimum premium to carry the policy to age 95 and to age 100. Also request a current values statement and the change-of-ownership packet. These are usually free and take a few business days.
How much might a North American universal life policy sell for?
It depends on age, health, death benefit, and cost to carry. Market-wide, 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. Universal life often shows a strong multiple because its surrender value is usually modest.
What is the difference between death benefit Option A and Option B?
Option A pays a level death benefit, so charges ease as the account value grows. Option B pays the face amount plus the account value, so the benefit grows but the monthly cost of insurance stays higher. Your annual statement names which option is in force.
My policy has a lapse warning. Is it too late to sell?
Not necessarily, but time matters. A policy must stay in force through closing, so if a lapse is imminent you may need to make a payment or use the grace period while the transaction proceeds. Ask for a review immediately rather than waiting to see what happens.
Does an outstanding loan stop the sale?
No, but it reduces what you receive. The buyer takes the policy subject to the loan, so the payoff amount is netted from the proceeds. Get the current payoff figure from the service center before reviewing any offer.
How do I get started?
Send the policy cover page showing the insurer, policy number, face amount, and issue date for a free, no-obligation policy review. If you prefer to ask questions first, call (305) 209-7183.
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Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- How It Works Policy Options
- Education Center
- Sell My North American Guaranteed Universal Policy
- Sell My North American Indexed 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.