Yes — a Reliance Standard universal life policy can be sold in a life settlement if you and the policy qualify. The contract is your personal property, the buyer purchases it from you, and the carrier’s permission is not needed. Reliance Standard is not a party to the decision; after closing it processes an ownership change like any other administrative form.
Some context on the company. Reliance Standard Life Insurance Company is a Philadelphia-based carrier best known for group employee benefits — group life, disability and voluntary products sold through employers rather than individual policies sold at the kitchen table. It joined the Tokio Marine group when its parent, Delphi Financial Group, was acquired in a deal announced in 2011 and completed in 2012; confirm the current corporate structure and A.M. Best rating with the carrier as of 2026. Because individual permanent life is a small slice of that book, check first whether you hold an individual UL policy or a group certificate that would need converting.
If you do hold individual universal life, you hold the single most common life-settlement candidate there is. Here is why, and what to do about it. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Reliance Standard.
In This Article
The Machine Under the Hood
A universal life policy is an account, not a fixed contract. Premium goes in, the insurer credits interest, and every month the company subtracts a cost-of-insurance charge plus administrative fees. Whatever is left is your account value. As long as that value stays above zero, the policy stays alive.
The catch is that the monthly cost of insurance is not level. It is priced on the insured’s current age, so it climbs every year, gently in your fifties and steeply after 75. A structure that works beautifully at 45 works against you at 80.
Why 1980s and 1990s Policies Are Failing Now
Universal life sold in the 1980s, 1990s and early 2000s was illustrated with crediting assumptions of roughly 8% to 12%, which reflected the interest-rate environment of the era. Buyers were shown projections where the account grew fast enough to absorb rising insurance charges forever, and many were told the policy would be self-supporting after a set number of years.
Interest rates fell and stayed low for a long stretch, and most of those contracts now credit at or near their guaranteed minimum — frequently in the 2% to 4% range depending on the contract language. Less interest coming in, plus an insurance charge that grows every year, produces a shrinking account value. Eventually the carrier sends a letter asking for a much larger premium to prevent lapse. Owners in their late seventies and eighties are the ones receiving those letters.
Nothing improper happened; the illustrations were projections, not promises. But the result is a large population of policies that are simultaneously expensive to keep and valuable to sell.
Request the In-Force Illustration — Both Versions
Call the service center and request an in-force illustration. It is free and you are entitled to it as owner. Ask for two runs:
- Current assumptions — today’s crediting rate and today’s charges continuing unchanged.
- Guaranteed assumptions — the minimum interest and maximum charges the contract permits.
Then ask one question in plain language: at the premium I pay now, in what year does this policy lapse? The guaranteed run is the pessimistic case and the current run is the optimistic one; the truth usually falls between. If the answer is a year you might reasonably live to see, the policy is at risk and worth evaluating. Our guide to reading an in-force illustration explains the columns.
Also ask for the premium required to carry the policy to age 100. That number is often the one that ends the debate.
| Illustration Scenario | What It Assumes | What It Tells You |
|---|---|---|
| Current assumptions | Today’s crediting rate and current charges continue | Best realistic case for the lapse year |
| Guaranteed assumptions | Minimum interest, maximum contractual charges | Worst case the carrier is allowed to deliver |
| Premium to age 100 | Policy carried to age 100 without lapsing | The true long-run cost of keeping it |
| Reduced face amount | Lower death benefit, lower monthly charges | Whether the policy can be made self-sustaining |
| Minimum premium to avoid lapse | Bare minimum funding | The number a settlement buyer prices against |
What Drives the Offer
Four inputs move a universal life offer more than anything else:
- Death benefit. $100,000 is the practical floor for the secondary market.
- Life expectancy. Produced by independent actuarial firms from medical records, not by the buyer’s opinion.
- Cost to carry. The minimum premium a buyer must pay each year to keep the policy in force. Lower is better for the offer.
- Contract mechanics. Guaranteed minimum crediting rate, guaranteed maximum charges, and any no-lapse features.
Note what is missing from that list: your account value. It matters only insofar as it reduces the future premium a buyer must pay. A thin account value does not disqualify a policy — it usually explains why the owner is looking. For general ranges see how much a policy can bring.
Options Short of Selling
A settlement is one choice among several, and honest advice starts with the others:
- Reduce the death benefit. A smaller face amount lowers the monthly insurance charge and can make the account value sustainable again. This is the most underused fix in universal life.
- Pay more now. Adding premium while the insured is younger costs far less than fixing a nearly empty account later.
- Surrender. You collect the cash surrender value, which on an underfunded UL is often disappointing.
- Let it lapse. You receive nothing, which is the outcome worth avoiding if the policy has settlement value.
Weigh them with the framework in is a life settlement worth it.
Process, Paperwork and Timing
Send the policy cover page first — that alone supports a free, no-obligation review. If the policy is a candidate, the file needs the current annual statement, in-force illustrations at current and guaranteed assumptions, the full contract with riders, any loan payoff figure, and health information for the life-expectancy reports.
Expect 60 to 120 days from application to funded payment. The stages are authorizations, medical records, one or two independent life-expectancy reports, bidding among licensed institutional buyers, acceptance, and closing through an independent escrow account, with funds released after the carrier confirms the ownership change. Keep the policy funded until closing — a lapse mid-process ends the transaction. This page is educational only and is not legal, tax or investment advice; proceeds can be taxable and can affect eligibility for needs-based benefits, so involve a CPA or elder-law attorney.
Frequently Asked Questions
Why did my universal life premium jump after decades of the same payment?
The internal cost of insurance rises every year with the insured’s age, while older policies now credit interest near their guaranteed minimum instead of the 8% to 12% originally illustrated. When the account value can no longer absorb the charges, the carrier requests a larger premium to prevent lapse.
Do I need Reliance Standard’s approval to sell?
No. The policy is your property, the buyer purchases the contract from you, and the carrier’s permission is not required. Reliance Standard simply records the ownership and beneficiary change after the sale closes.
My account value is nearly gone. Is the policy worthless?
Not necessarily. Buyers price the death benefit, the insured’s life expectancy and the premium needed to keep the policy in force. A low account value affects the buyer’s carrying cost but does not by itself disqualify the policy.
What is an in-force illustration and which version should I request?
It is a free carrier projection of how the policy performs year by year. Request one at current assumptions and one at guaranteed assumptions, and ask in what year the policy lapses at your present premium. The gap between the two shows how much time you really have.
Would reducing the death benefit be better than selling?
Sometimes. Lowering the face amount reduces the monthly insurance charge and can make the account value sustainable again, which is the right answer if you still need some coverage. If the coverage is no longer needed at all, a settlement usually returns more than surrender.
How much might my policy sell for?
The federal GAO study (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, averaging about four to eight times cash surrender value. No one can give you a real number without reviewing the contract and the medical file.
I think my policy is actually a group certificate. What now?
Group coverage cannot be sold as-is. It has to be converted into an individual policy first, and the conversion window after leaving the employer is typically about 31 days. Ask the plan administrator or carrier to confirm your deadline in writing.
What is the first step?
Send the policy cover page for a free, no-obligation review, or call (305) 209-7183. If it looks like a candidate, the next step is requesting the in-force illustration from the carrier.
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
- What Is An In Force Illustration
- How Much Can I Get For My Life Insurance Policy
- Is A Life Settlement Worth It
- Life Settlement Vs Surrender
- Sell My Reliance Standard Guaranteed Universal Policy
- Sell My Reliance Standard 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.