Yes — a OneAmerica indexed universal life policy can be sold in a life settlement when the insured and the contract qualify, and the carrier’s consent is not required to complete the transfer. Your policy is property you own, and the insurer’s role at closing is to record the change of ownership. Whether a buyer will bid depends on age, health, the death benefit, any loan, and the projected cost of keeping the contract in force to maturity.
OneAmerica Financial is an Indianapolis-based mutual organization whose principal life company, American United Life Insurance Company, dates to 1877. OneAmerica is widely associated with asset-based long-term care solutions — life and annuity contracts with care benefits attached — alongside retirement services and employee benefits. Its individual life shelf has shifted over the years. As of 2026, confirm directly with OneAmerica which product you own, whether it is an indexed universal life contract, and whether that series remains open for new business or exists only as an in-force block.
This page explains index crediting, the effect of long-term care and chronic illness riders on a settlement, and how the secondary market prices a universal life policy. Pine Lake Life Solutions is not affiliated with OneAmerica Financial or American United Life. Nothing here is legal, tax or investment advice.
In This Article
If Your Policy Has a Care Rider, Read This First
OneAmerica’s best-known products attach long-term care or chronic illness benefits to a life insurance chassis. If your contract includes such a rider, do not evaluate a settlement without first understanding what the rider pays. A care rider that accelerates the death benefit for qualifying care needs can be worth far more to a family facing assisted living costs than a lump-sum sale of the policy.
Run the comparison concretely. Ask the carrier what monthly benefit the rider pays, what triggers it — usually the inability to perform activities of daily living or a cognitive impairment certification — and what the elimination period is. Then compare that stream against a one-time settlement payment. Our guides to settlement versus an LTC rider and settlement versus a chronic illness rider lay out both sides. Selling the policy ends the rider along with the death benefit.
How Indexed Crediting Works
An indexed universal life policy credits interest tied to an index rather than investing in it. The common structure measures the S&P 500 on price return over a one-year segment — dividends excluded — multiplies the change by a participation rate, truncates it at a cap and never credits below the floor, typically 0%. The insurer funds the credit with options purchased from a budget that moves with interest rates and volatility.
Because that budget fluctuates, declared caps and participation rates on in-force policies can be reduced toward the guaranteed minimums stated in the contract, and cost-of-insurance rates can be increased toward the guaranteed maximums, usually on a class basis. Ask OneAmerica in writing for all four figures — current cap, guaranteed minimum cap, current COI scale, guaranteed maximum COI scale — as of 2026.
Optimistic Illustrations and the Path to Lapse
A policy illustrated at a level high credit rate is a policy priced for the best case. Real crediting alternates between capped gains and zero years, and the monthly deductions never pause. Cost of insurance is charged on the net amount at risk, so each shortfall in account value increases the next charge. Small deviations compound into a projection that shows the policy failing decades early.
The result arrives as a notice requiring a much larger premium or a reduced death benefit. Families frequently discover the problem at the same moment they are facing care costs, which is precisely when flexibility is scarcest. Related reading: why universal life costs increase and options when premiums become unaffordable.
| Rider or Feature | What It Pays | Effect if You Sell |
|---|---|---|
| Long-term care rider | Monthly care benefit from the death benefit | Ends with the sale |
| Chronic illness rider | Accelerated benefit on ADL or cognitive trigger | Ends with the sale |
| Terminal illness rider | Lump sum on qualifying prognosis | Consider a viatical instead |
| Waiver of monthly deduction | Charges waived while disabled | Reduces the premium a buyer must fund |
| Policy loan | Cash now, debt against the benefit | Subtracted from any offer |
Get the In-Force Illustration in Writing
Request an in-force illustration at current charges and crediting, at guaranteed maximum charges with guaranteed minimum crediting, at the premium that carries the policy to maturity, and at zero premium. The projected lapse year in each scenario is the clearest measure of where you stand, and the carrier must produce it at no cost.
For a settlement, the same document supplies the premium stream that a buyer discounts. Without it, no responsible valuation exists. Background: what an in-force illustration is and the complete document checklist.
How Buyers Price the Policy
The valuation is the net death benefit less the discounted cost of keeping the contract alive to maturity, weighted by a life-expectancy estimate an independent medical underwriter produces from records, discounted at the buyer’s required rate of return, less transaction costs. Loans reduce the net death benefit dollar for dollar.
Health documentation matters more than most sellers expect, because it sets the expected holding period. So does the premium load: a contract with meaningful account value that can coast on minimum premiums prices better than a hollow one of the same face amount. The federal GAO study (GAO-10-775) found typical proceeds of roughly 10% to 35% of face value, commonly four to eight times cash surrender value.
Rank Your Options Honestly
Keep the policy if a care rider provides benefits your family is likely to use, or if beneficiaries still depend on the death benefit and the corrected premium is affordable. Reduce the death benefit if you want to stay insured at a lower monthly charge. Elect reduced paid-up, if available, to end premiums entirely. Surrender if the cash value approaches what the market would pay.
Choose a settlement when the coverage is no longer needed, the premium is not sustainable, and the face amount is large enough to attract bidders — often to fund an assisted living move or a Medicaid spend-down. If proceeds might affect means-tested benefits, get advice before you sign; a lump sum can change Medicaid eligibility.
Qualifying, Timeline and Next Steps
Typical criteria are an insured aged 65 or older — younger with significant impairments — a death benefit of $100,000 or more, and a policy past the two-year contestability period. Trust-owned or POA-managed policies are workable with proper documentation of authority.
Plan on 60 to 120 days. Funds should be held by an independent escrow agent and released only after the carrier confirms the ownership transfer, and most states provide a rescission period afterward — verify yours as of 2026. Get every offer in writing and ask what any intermediary is paid.
To start, send only the policy cover page for a free, no-obligation review, or call (305) 209-7183. If a settlement is not the right answer, that is what the review should tell you.
Frequently Asked Questions
Does OneAmerica need to approve the sale of my policy?
No. Transferring a policy you own does not require the carrier’s consent. OneAmerica records the new owner and beneficiary after closing as an administrative step.
Does OneAmerica still issue individual indexed universal life?
OneAmerica, whose principal life company American United Life dates to 1877, is best known for asset-based long-term care solutions, retirement services and employee benefits, and its individual life shelf has changed over time. Confirm with the company as of 2026 whether an indexed universal life product is currently offered or whether your contract sits in an in-force block.
My policy has a long-term care rider. Should I still consider selling?
Only after comparing the two carefully. A care rider can pay a monthly benefit when you cannot perform activities of daily living or have a cognitive impairment, which may be worth more to your family than a lump sum. Selling the policy ends the rider along with the death benefit.
Will a settlement payment affect Medicaid eligibility?
It can. A lump sum is generally a countable resource for means-tested programs, and there are transfer rules and look-back periods to consider. Talk to an elder law attorney or benefits counselor before accepting an offer if Medicaid is part of the picture.
Why did my cap go down?
The option budget that funds index credits moves with interest rates and volatility, and most in-force contracts allow the carrier to reduce declared caps and participation rates down to the guaranteed minimums. Ask for the current and guaranteed figures in writing so you can see how much room remains.
How much might the policy bring?
The federal GAO study of the market reported typical proceeds of about 10% to 35% of face value, roughly four to eight times cash surrender value. Where your policy lands depends on life expectancy, the premium required to sustain it, and any outstanding loan.
What is the fastest way to find out if I qualify?
Send the policy cover page — the page listing the insurer, policy number, face amount and issue date. A free, no-obligation review can usually give you an answer within a day or two. You can also call (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
- Life Settlement Vs Long Term Care Rider
- Life Settlement Vs Chronic Illness Rider
- Universal Life Cost Increases
- Cant Afford Life Insurance Premiums
- What Is An In Force Illustration
- What Documents Are Needed Life Settlement
- Entering Assisted Living Funding
- Nursing Home Medicaid Spend Down
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.