Yes — a SILAC universal life policy can be sold in a life settlement whenever the policyholder and the policy qualify; the buyer purchases the contract from you, the carrier’s permission is not required, and the carrier is not a party to the decision. Universal life is the most common policy type in the entire secondary market, and the reason is mechanical rather than promotional.
If your contract reads Equitable Life & Casualty rather than SILAC, you have the right company. SILAC Insurance Company of Salt Lake City is the former Equitable Life & Casualty, rebranded in 2020, and its current business is overwhelmingly annuities. Verify the 2026 ownership, the current financial strength rating, and whether SILAC services any legacy life block directly by calling the number on your most recent statement.
The single document that answers most questions about a universal life policy is the in-force illustration, and this guide is built around getting one and reading it. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of SILAC or Equitable Life & Casualty.
In This Article
- The Mechanism: Why UL Premiums Balloon Later in Life
- Get the In-Force Illustration — Ask for Both Versions
- What a Buyer Is Actually Buying
- Your Surrender Value May Be Almost Nothing — That Matters
- Qualifying — the Insured and the Contract
- Timeline, Step by Step
- When Keeping the Policy Is the Better Answer
- Frequently Asked Questions
The Mechanism: Why UL Premiums Balloon Later in Life
A universal life policy is an account with insurance charges deducted from it. Premiums go in, interest is credited, and each month the carrier subtracts the cost of insurance plus expenses. The cost of insurance is not level — it tracks the insured’s age, and the increases become steep in the 70s and 80s.
The design assumed credited interest would keep pace. For a great many contracts sold from the 1980s through the early 2000s, illustrated at assumed rates in the 8% to 12% range, it did not. Those policies have spent years crediting at or near their guaranteed minimum. Less coming in, more going out, and an account value grinding toward zero.
The owner experiences this as a letter: additional premium is required to keep the policy in force, sometimes several times the amount previously paid. It usually arrives at the worst possible age — old enough that replacing coverage is impractical, and often at a point when income is fixed. That gap between plan and reality is what created the settlement market.
Get the In-Force Illustration — Ask for Both Versions
An in-force illustration is a year-by-year projection the servicing carrier produces on request, at no charge. Ask for it in two forms and one supplement:
- Current assumptions — what happens if today’s crediting rate and current charges continue. Treat this as a best case.
- Guaranteed assumptions — minimum credited interest and maximum allowable charges. This is the honest floor, and it is the version buyers use.
- Premium required to maturity — what it actually costs to carry the coverage to age 100 or maturity.
Then look for one thing: the year the account value hits zero. That is your real time horizon, and it turns a vague worry into a date on a calendar. See what an in-force illustration is for how to read the columns.
What a Buyer Is Actually Buying
A buyer is not paying you for your account value. A buyer is acquiring a future death benefit and taking on the obligation to fund it until it pays. Three inputs set the price.
Life expectancy, estimated from medical records by independent underwriting firms. Fewer expected years of premium means a higher offer.
Cost to carry, taken from the guaranteed-assumption illustration. Universal life is flexible in how it can be funded, and institutional buyers can often carry it more efficiently than an individual owner has been.
Contract terms — face amount, death benefit option A or B, remaining surrender charges, riders, and any outstanding loan, which is paid off at closing.
Reported outcomes generally run about 10% to 35% of face value, and the federal GAO study (GAO-10-775) found sellers received roughly four to eight times cash surrender value. See how much you can get.
| Signal on Your Statement or Notice | What It Usually Means | What to Do |
|---|---|---|
| Required premium jumped sharply | Charges have outrun credited interest | Request an in-force illustration at guaranteed assumptions |
| Account value falling year over year | Monthly deductions exceed premium plus interest | Identify the projected lapse year |
| Cash surrender value near zero | Normal for a mature, underfunded UL | Recognize that surrender is a weak alternative |
| Letter warning of termination | The policy is approaching lapse | Act before the grace period ends — lapsed policies have no value |
| Crediting rate at the guaranteed minimum | The original illustration’s assumptions did not hold | Re-price all options with current numbers |
Your Surrender Value May Be Almost Nothing — That Matters
Owners assume decades of premiums must have accumulated something. On a universal life policy where charges have outrun credited interest for years, the cash surrender value is often a few thousand dollars, and sometimes zero.
Read that as clarifying rather than discouraging. If surrendering returns almost nothing and lapsing returns nothing at all, then a settlement — even a modest one — may be the only route that recovers value from years of premiums. Check the exact surrender value on your most recent statement before assuming otherwise, and compare in settlement vs. surrender.
One trap worth naming: some owners quietly stop paying, hoping the account value will carry the policy for a while. It usually does, until it does not. A lapsed policy has no settlement value whatsoever. If money is tight, start the conversation before the grace period ends, not after.
Qualifying — the Insured and the Contract
The insured. Interest is strongest for insureds roughly 65 and older, and for younger insureds whose health has changed materially since issue. Estimates come from independent medical underwriters, not from anyone’s impression.
The contract. Death benefit of $100,000 or more, in force past the contestability period, and ownership free of complications — trusts, divorce decrees, and collateral assignments should be resolved before marketing.
A carrier historically focused on the senior market often has older policies with modest face amounts. Be realistic: a $25,000 policy cannot carry the fixed cost of underwriting and servicing a transaction, no matter how attractive the situation otherwise looks. Full criteria in what policies qualify.
Timeline, Step by Step
Days 1–7. Free policy review from the cover page. You learn whether you have a realistic candidate before investing effort.
Weeks 2–5. The servicing carrier produces the in-force illustration; medical records are collected under a specific, revocable authorization; life expectancy reports are ordered.
Weeks 5–10. The case goes to buyers. Offers should come in writing, with gross and net-of-commission figures if a broker is involved.
Weeks 8–16. Contracts, independent escrow, the carrier records the ownership change, escrow releases funds. Most states then provide a rescission window to unwind the sale.
About 60 to 120 days overall. Clean title and a responsive service center are what make a case finish on the fast end.
When Keeping the Policy Is the Better Answer
Selling is not automatically right. Keep the policy when a survivor still depends on the death benefit, when the premium is genuinely affordable, or when the coverage is part of an estate plan that still works. In those cases the productive move may be to fix the funding — adding premium, reducing the face amount, or exchanging into a guaranteed product — rather than exiting.
Selling tends to make sense when the original purpose is gone: children grown, mortgage paid, a business partner retired, a spouse deceased. It also makes sense when the premium has become a genuine strain, or when cash is needed now for care costs.
A free review costs nothing and resolves the question either way. Compare with is a life settlement worth it. If you also hold SILAC or Equitable Life & Casualty whole life or term coverage, see selling a SILAC whole life policy or a SILAC term policy. Call (305) 209-7183.
Frequently Asked Questions
Why is universal life the most commonly sold policy type?
Because the cost of insurance rises with age while many older contracts now credit interest near their guaranteed minimum, so required premiums balloon in the insured’s 70s and 80s. Owners face paying far more or losing the coverage. A settlement converts that squeeze into a lump sum.
My contract says Equitable Life & Casualty. Is that the same as SILAC?
Yes. Equitable Life & Casualty, based in Salt Lake City, rebranded as SILAC Insurance Company in 2020. The rebrand does not change your contract’s terms. Confirm with the carrier in 2026 who services your specific policy, since legacy life blocks are sometimes administered elsewhere.
How do I request an in-force illustration?
Call the service number on your premium notice and ask for one, in writing if possible. Request both current and guaranteed assumptions plus the premium needed to carry the policy to maturity. Carriers produce these on request, typically within a few weeks, at no charge.
My cash surrender value is near zero. Is the policy worth nothing?
No. Buyers price the death benefit and the cost to carry it, not the account balance. A universal life policy with little surrender value can still draw offers when the face amount is large enough and the life expectancy analysis supports it.
Does the carrier have to consent to the sale?
No. The buyer purchases the contract from you and the servicing carrier only records the new owner and beneficiary after closing. It is not a party to the decision and does not approve or block it.
What if I have already stopped paying premiums?
Move quickly. A policy in its grace period can often still be evaluated, but a fully lapsed policy has no settlement value. Reinstatement, where available, usually requires back premiums and evidence of insurability, so call before the deadline passes.
Is a smaller senior-market policy worth reviewing?
Pine Lake works with policies of $100,000 or more in death benefit. Underwriting and servicing costs are largely fixed, so smaller policies generally cannot support a transaction. It costs nothing to ask, and an honest no arrives quickly.
How long does it take, and what do I send first?
Typically 60 to 120 days from application to funded payment, with documentation as the slow step. To start, send only the policy cover page showing insurer, policy number, face amount, and issue date.
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
- Life Settlement Vs Surrender
- How Much Can I Get For My Life Insurance Policy
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- Sell My Silac 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.