Yes — a RiverSource universal life policy can be sold in a life settlement, and the carrier’s permission is not required, because the transaction is a sale of your contract to a buyer rather than a request to the insurer. RiverSource records the new owner and beneficiary when the paperwork clears, and that is the extent of its role. Universal life is the type most frequently sold in the secondary market, for a reason that has nothing to do with any particular carrier.
Universal life is a flexible-premium contract with an interior account value that pays for the insurance month by month. The monthly charge is based on the amount at risk and a rate that rises with the insured’s age. For thirty years the interest credited covers that charge comfortably. Then, somewhere in the seventies or eighties, it stops covering it, the account value starts draining, and the insurer sends a notice asking for a premium far larger than the one you have been paying.
If you own a RiverSource contract, it may have been issued under the IDS Life Insurance Company name — Ameriprise Financial was spun off from American Express in 2005, and its insurance subsidiary took the RiverSource name in 2006. This page explains how a universal life policy is valued, what to request from the service center, and what to do if a lapse notice has already arrived. Pine Lake Life Solutions is not affiliated with RiverSource or Ameriprise Financial.
In This Article
- The Company Behind the Statement
- Where the Money Actually Goes Each Month
- Order the Right In-Force Illustrations
- If a Lapse Notice Has Already Arrived
- Loans, Riders, and Other Things That Move the Number
- Closing: Assignment, Escrow, Rescission
- Worked Example and Qualification
- Frequently Asked Questions
The Company Behind the Statement
RiverSource Life Insurance Company traces to IDS Life, the Minneapolis insurer built inside Investors Diversified Services. American Express spun off Ameriprise Financial as an independent public company in 2005, and IDS Life became RiverSource the following year, with a separate New York subsidiary issuing New York contracts. Ameriprise’s business has since tilted heavily toward annuities and wealth management distributed through its advisor network, and it exited property and casualty entirely by selling its auto and home unit to American Family Insurance in 2019.
For a policy owner, the useful takeaway is narrow: know which company issued your contract, because change-of-ownership forms go to that company’s service center, and New York contracts follow the New York company’s rules. Confirm the servicing number and the current A.M. Best financial strength rating on RiverSource’s own website (verify as of 2026). A carrier’s rating affects a buyer’s diligence, not your right to sell.
Where the Money Actually Goes Each Month
Picture the account value as a bucket. Premiums pour in, interest is credited, and every month the insurer dips in for the cost of insurance plus administrative and per-thousand charges. The cost-of-insurance rate is not level — it is an age-based rate applied to the net amount at risk, and it accelerates sharply in later years. Meanwhile the net amount at risk grows as the account value shrinks, so the charge compounds against itself.
That is the mechanism behind almost every distressed universal life policy in America. Nothing was mispriced and nobody misbehaved; the design simply front-loads affordability and back-loads cost. The result is a policyholder holding valuable coverage they can no longer carry — and a buyer willing to carry it. Published market research (GAO-10-775) found sellers historically received roughly 10% to 35% of face value, frequently several multiples of surrender value.
Order the Right In-Force Illustrations
The in-force illustration is the single most important document in a universal life settlement, and the version you request determines whether it is useful. Ask the service center for a projection at current charges and current credited rate, and a second at guaranteed maximum charges and the guaranteed minimum rate. The gap between the two brackets the risk a buyer is taking on.
Also ask for the premium solve at three horizons: what it costs to keep the policy in force for the next twelve months, what it costs to carry it to age 95, and what it costs to carry it to maturity. Those numbers convert an abstract question into a price. You may request illustrations yourself as owner, or sign an authorization letting a specialist request them for you — the latter usually moves faster because the request is phrased the way the service center expects.
| Policy Feature | Effect on a Settlement Offer | How to Verify It |
|---|---|---|
| Rising cost of insurance | Higher future premiums lower the offer | In-force illustration at current charges |
| Outstanding policy loan | Deducted dollar for dollar | Annual statement |
| Level (Option A) death benefit | Stable amount a buyer acquires | Specifications page |
| Increasing (Option B) death benefit | Can shrink as account value drains | Written confirmation from service center |
| Term rider on the same contract | May or may not transfer | Rider provisions plus carrier confirmation |
| Grace period notice | Time-critical; policy must stay in force | The notice itself; note the deadline date |
If a Lapse Notice Has Already Arrived
A grace-period or lapse notice is urgent, not fatal. The policy is still in force during the grace period, and a policy in force can be sold; a policy that has lapsed generally cannot, and reinstating it usually requires evidence of insurability that an older insured may not be able to provide.
Because a settlement runs roughly 60 to 120 days, a premium often has to be paid to hold the contract open while the transaction proceeds. Say so on the very first call if a notice has arrived, and note the exact date the grace period ends. Do not let a policy lapse quietly on the theory that you will sort it out next month — the asset disappears at the deadline and the years of premiums go with it.
Loans, Riders, and Other Things That Move the Number
Several contract features change what a buyer will pay. An outstanding loan is deducted from the offer along with accrued interest. A term rider on the same contract may or may not be included in the transferable death benefit — check whether it is convertible and whether it survives a change of ownership. An accelerated death benefit or chronic-illness rider can matter if it has already been triggered.
Increasing versus level death benefit matters too. An increasing (Option B) design ties the death benefit to the account value, so as the account value drains the death benefit can shrink — the number a buyer is acquiring is the current one, not the original. Ask the service center to confirm the current death benefit option and amount in writing. For context on the cash figures, see how cash surrender value works.
Closing: Assignment, Escrow, Rescission
The transfer is done by absolute assignment on the carrier’s form, naming the buyer as owner and beneficiary. Insurers commonly require the signature to match the owner’s name on the policy, plus notarization or a signature guarantee, and they will verify the policy is in force and not in grace before recording.
Funds are held by an independent escrow agent and released only after the insurer confirms the recorded change in writing. Most states then give the seller a rescission window. If a broker is involved, ask for both the gross offer and the net-to-you figure after commissions, in writing, before signing. The full sequence and the partial-sale alternatives appear in how the policy options work.
Worked Example and Qualification
Hypothetical, rounded, illustration only. An 81-year-old owns a $600,000 universal life policy with a $12,000 account value, a $4,000 outstanding loan, and an in-force illustration showing $26,000 a year is now required to carry it to age 100. Surrender pays essentially nothing after the loan. A settlement in the published 10%–35%-of-face range would be $60,000 to $210,000 gross, less the loan, with the real figure determined by life expectancy and the premium burden a buyer assumes. Invented numbers, shown to illustrate the shape of the trade.
Common qualifying profile: insured about 65 or older, death benefit of $100,000 or more, policy in force at least two years, premiums rising or already unaffordable. Compare the exits in settlement versus surrender, check the screen in what policies qualify, or browse the education center. To have a policy reviewed at no cost, send the cover page or call (305) 209-7183. If your RiverSource contract is a variable universal life policy, see selling a RiverSource VUL policy.
Frequently Asked Questions
Why is universal life the most commonly sold policy type?
Because its cost structure rises with age. Monthly cost-of-insurance charges climb steeply in later years, so premiums that were affordable for decades become a burden exactly when the coverage is often no longer needed. That combination is what creates a seller and a buyer.
Do I need RiverSource’s consent to sell?
No. The buyer purchases the contract from you. The insurer’s role is administrative — recording the change of owner and beneficiary once the assignment forms are complete and in good order.
My policy says IDS Life. What happened to that company?
IDS Life Insurance Company was renamed RiverSource Life Insurance Company in 2006, following Ameriprise Financial’s 2005 spinoff from American Express. The contract terms carried over. Confirm the current servicing company using the number on your most recent statement.
Which in-force illustrations should I request?
Request one at current charges and current credited rate, and one at guaranteed maximum charges and the guaranteed minimum rate. Also ask for the premium needed to keep the policy in force for twelve months, to age 95, and to maturity. Those figures are what a buyer prices from.
I received a lapse notice. Can I still sell?
Possibly, but act immediately. A policy in its grace period is still in force and can be sold; a lapsed policy generally cannot, and reinstatement usually requires evidence of insurability. Because a settlement takes 60 to 120 days, a premium may be needed to hold the policy open.
Will a policy loan reduce my proceeds?
Yes. The buyer takes the policy subject to its debt, so the loan balance plus accrued interest is subtracted from the gross offer. Large loans sometimes make a sale uneconomic, which is why the balance is checked early in a review.
How is my payment protected at closing?
Funds should be held by an independent escrow agent and released only after the insurer confirms in writing that the ownership change has been recorded. Never transfer ownership in exchange for a promise of later payment. Most states also allow a rescission period after closing.
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Related Reading
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Education Center
- Sell My Riversource Variable 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.