Yes — a genuine indexed universal life policy can be sold in a life settlement when the policyholder and the policy qualify, and no carrier’s permission is required. A life insurance contract is property, and property can be transferred. At closing the insurer records a new owner and beneficiary; it has no vote in the matter. With SILAC, though, the honest first step is different from the usual one: establish whether the contract in your file is life insurance at all.
SILAC Insurance Company is based in Salt Lake City, Utah, and traces its history to Equitable Life & Casualty Insurance Company, founded in 1935 and long known for products aimed at seniors. The company adopted the SILAC name around 2019 and has focused its business primarily on fixed indexed annuities and related retirement products. Verify with SILAC directly whether it currently issues, or has ever issued to you, a retail indexed universal life policy. If your contract turns out to be a fixed indexed annuity, nothing in the settlement analysis below applies to it, and any salesperson who tells you otherwise is wrong.
The confusion is understandable because the vocabulary overlaps almost completely. Indexed annuities and indexed universal life both talk about index crediting, caps, participation rates and a 0% floor. The difference lies in what the contract promises. Indexed universal life pays a death benefit to a beneficiary and charges monthly cost of insurance for that promise. A fixed indexed annuity accumulates or pays income to you and has no cost of insurance. Only the life insurance contract can be sold in a life settlement. Pine Lake Life Solutions is not affiliated with SILAC or Equitable Life & Casualty.
In This Article
- A Two-Minute Test on Your Own Paperwork
- The Senior Products Trap: Small Policies That Cannot Be Settled
- If You Genuinely Hold Indexed Universal Life
- Protect Yourself From Pressure Tactics
- What a Qualifying Policy Is Worth
- Alternatives That Often Fit Better
- Start With a Free Review of What You Actually Own
- Frequently Asked Questions
A Two-Minute Test on Your Own Paperwork
Pull the contract and the most recent annual statement. Life insurance markers: a stated face amount or death benefit; a named insured whose age and health were underwritten at issue; and a monthly cost-of-insurance deduction shown on the statement.
Annuity markers: an accumulation value paired with a declining surrender charge schedule; a market value adjustment provision; an income or withdrawal rider with a benefit base separate from the account value; a named annuitant rather than an insured; and no cost-of-insurance charge anywhere in the ledger. If you see the second set and no death benefit, you hold an annuity. That may be a sensible asset for your situation, but a life settlement is not one of its exit options. See life settlement vs. annuity.
The Senior Products Trap: Small Policies That Cannot Be Settled
Companies with a long history of selling to seniors often leave households holding a mix of Medicare supplement plans, hospital indemnity plans, and small burial or final expense life policies. Two of those three have no death benefit and cannot be sold at all. The third has a death benefit but is usually far too small.
Say it plainly: final expense policies are typically issued with face amounts in the range of a few thousand to twenty-five thousand dollars, well below the roughly $100,000 the secondary market needs to justify the underwriting and administration costs of a transaction. If that is what you hold, keeping the policy or surrendering it for any cash value is almost always the better call, and a legitimate reviewer will tell you so in the first conversation. See can I sell a final expense policy and when a policy is too small to sell.
If You Genuinely Hold Indexed Universal Life
Then the standard IUL analysis applies. The policy credits interest linked to an index — commonly the S&P 500 price return, which excludes dividends — subject to a cap and a participation rate, with a floor usually at 0%. Monthly cost of insurance, per-thousand charges and rider fees are deducted from account value regardless of index performance, and carriers may lower current caps and raise current COI rates on in-force contracts within guaranteed limits.
The result over time is familiar: several 0% credit years, a drifting cap, and attained-age cost of insurance that accelerates as the account value shrinks. Account value falls, and the projected lapse year creeps closer. See indexed universal life explained and how cost of insurance works.
| Product You May Hold | Death Benefit? | Settlement Candidate? | Better Path |
|---|---|---|---|
| Fixed indexed annuity | Limited or none | No | Review surrender schedule and income options |
| Indexed universal life, $100k+ | Yes | Possibly | Request a free policy review |
| Final expense / burial life | Yes, small | Usually no | Keep it, or surrender for cash value |
| Medicare supplement | No | No | Compare plans at renewal |
| Hospital indemnity plan | No | No | Not a life settlement asset |
Protect Yourself From Pressure Tactics
Households holding senior-market products get more than their share of unsolicited calls. Two rules cover most of the risk. Never pay an upfront fee to have a policy reviewed or valued — a legitimate policy review is free. And never let anyone tell you that you must act today; life settlement transactions take weeks and there is no legitimate same-day deadline.
Other red flags: a caller who already claims to know your policy’s value without seeing any documents, pressure to sign a HIPAA authorization before you understand what it releases, and a refusal to put an offer in writing with both gross and net figures. See the upfront fee scam, cold calls about your policy, and warning signs of senior financial exploitation.
What a Qualifying Policy Is Worth
A buyer values a life policy as the expected net death benefit, minus the projected premiums required to keep it in force, discounted to present value at their required rate of return, across the duration distribution in an independent life-expectancy report.
The qualifying profile in 2026 is consistent: insured 65 or older or younger with significant health impairment; death benefit of $100,000 or more; policy past the two-year contestability period; and premiums the owner no longer wants to carry. The GAO’s market study (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, several times cash surrender value. See how buyers price a policy and what qualifies.
Alternatives That Often Fit Better
Reduce the face amount to lower charges. Consider a 1035 exchange if coverage is still needed but the current contract is failing — and get advice specific to your contract type, because exchanges between annuities and life insurance are treated differently under the tax code. Surrender a small policy for its cash value. Ask about a retained death benefit if you want premiums to end while heirs keep part of the coverage.
Where the coverage still serves your family and the premium is manageable, keeping it is the right answer. That is not a consolation prize; it is frequently the correct outcome of a careful review. See when keeping the policy is right.
Start With a Free Review of What You Actually Own
Send the cover page of the contract — issuing company, contract or policy number, any stated face amount, and issue date — and request a free policy review. The first thing that review does is identify the product type, which answers the annuity-versus-life question at no cost and with no obligation. Call (305) 209-7183 with questions first if you prefer.
If a genuine life policy proceeds, plan on 60 to 120 days. HIPAA-authorized medical record collection and independent life-expectancy reports take the longest. Offers arrive in writing, closing funds are held by an independent escrow agent until the carrier confirms the ownership change, and most states provide a rescission window after funding — confirm the rule that applies where you live. Nothing here is legal, tax, or investment advice.
Frequently Asked Questions
Does SILAC issue indexed universal life insurance?
SILAC has focused primarily on fixed indexed annuities and related retirement products rather than retail life insurance. Confirm directly with SILAC whether it issues or has issued an indexed universal life policy to you. If your contract is an annuity, it cannot be sold in a life settlement.
What was SILAC before it had that name?
SILAC traces to Equitable Life & Casualty Insurance Company, a Salt Lake City insurer founded in 1935 that was long known for senior-market products. The SILAC brand was adopted around 2019. Older paperwork may carry the earlier name.
How can I tell whether I hold life insurance or an annuity?
Life insurance shows a stated death benefit, a named insured who was medically underwritten, and a monthly cost-of-insurance charge. Annuities show an accumulation value, a surrender charge schedule, often an income rider with a benefit base, and no cost-of-insurance charge.
Is Pine Lake affiliated with SILAC?
No. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of SILAC Insurance Company or Equitable Life & Casualty. The names appear only to describe the type of contract discussed.
Can I sell a small burial policy?
Usually not. Final expense policies are typically issued with face amounts far below the roughly $100,000 the secondary market requires, so there is generally no buyer. Keeping the policy or surrendering it for any cash value is normally the better option.
Someone called offering to value my policy for a fee. Is that normal?
No. A legitimate policy review is free and no upfront fee should ever be required to learn what a policy is worth. Treat a fee demand, a claimed same-day deadline, or a refusal to put an offer in writing as reasons to walk away.
How much can a qualifying policy sell for?
The federal GAO market study found sellers typically received roughly 10% to 35% of face value, often several times cash surrender value. The actual figure depends on the insured’s life expectancy, the death benefit net of loans, and the premium needed to sustain the policy.
What should I send to find out what I have?
The cover page of the contract, showing the issuing company, contract number and any stated face amount. The review is free and carries no obligation. You can also call (305) 209-7183 to talk it through first.
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 Indexed Universal Life
- Life Settlement Vs Annuity
- Can I Sell A Final Expense Policy
- Policy Too Small To Sell
- What Is Cost Of Insurance
- Upfront Fee Demand Scam
- Cold Call About My Policy
- Senior Financial Exploitation Warning Signs
- How Buyers Price A Policy
- What Is A Qualifying Life Settlement
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.