Yes — a Southern Farm Bureau Life universal life policy can be sold in a life settlement, because the policy belongs to you and the buyer purchases the contract directly; the carrier’s permission is not needed. Universal life is, in fact, the single most common policy type in the secondary market, and there is a specific structural reason for that.
Universal life separates the death benefit from the account value. Each month the insurer deducts a cost of insurance from your account, and that cost climbs steeply as the insured ages. Many UL policies written between the 1980s and the 2000s were illustrated at 8% to 12% interest. Credited rates in the decades since have run far lower — in many cases at or near the contract’s guaranteed minimum. The account value never grew the way the sales illustration showed, so the rising insurance charges eat into it, and premiums that once looked comfortable balloon in the insured’s 70s and 80s.
If that describes your policy, you are not alone and it is not your fault. This guide shows how to see exactly when the policy will lapse, and what your options are. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Southern Farm Bureau Life Insurance Company.
In This Article
- Southern Farm Bureau Life in Brief
- The Illustration Problem: Why Your Premium Went Up
- Request an In-Force Illustration at Current AND Guaranteed Assumptions
- Why Buyers Like Universal Life
- Read Your Account Value Honestly
- Watch the Grace Period — Do Not Let It Lapse While You Decide
- Documents, Process, and Timing
- Other Options to Weigh First
- Frequently Asked Questions
Southern Farm Bureau Life in Brief
Southern Farm Bureau Life Insurance Company is based in Jackson, Mississippi, and is jointly owned by a group of state Farm Bureau federations across the South. It sells only through Farm Bureau agents to Farm Bureau members, so membership was a real prerequisite when your policy was written, and its licensed footprint is narrower than a national carrier’s. Confirm the current participating-state list and the 2026 A.M. Best rating with the company directly.
Note that several unrelated insurers use “Farm Bureau” in their names — they are separate legal entities. Check the exact company name on your cover page. And to be clear about the membership question: it governed who could purchase coverage, not what you may do with a contract you already own. It does not block a sale.
The Illustration Problem: Why Your Premium Went Up
When a universal life policy is sold, the agent shows an illustration projecting how the account value will grow. In the 1980s and 1990s, those projections commonly assumed crediting rates of 8% to 12%, because that was the rate environment at the time. The illustration then showed a modest premium carrying the policy for life.
Interest rates fell and stayed low for a long stretch. Policies credited far less than illustrated, in many cases dropping to the contractual guaranteed minimum. Meanwhile the monthly cost of insurance kept rising on schedule with the insured’s age. The account value that was supposed to absorb those charges never materialized, so the policy started consuming itself. Eventually the carrier sends a notice: pay substantially more, or the policy lapses.
That notice is the moment a lot of families discover the secondary market exists. A policy about to lapse is worth zero to you. Sold, it may be worth a meaningful lump sum.
Request an In-Force Illustration at Current AND Guaranteed Assumptions
This is the most useful thing you can do today, and it costs nothing. Call Southern Farm Bureau Life’s policy service line and request an in-force illustration. Ask specifically for two versions:
- At current assumptions — how the policy performs if today’s credited rate and current charges continue.
- At guaranteed assumptions — the worst case the contract permits: minimum credited rate, maximum charges.
Then ask for a third scenario: the premium required to carry the policy to age 100 or maturity. Compare the lapse dates across all three. The gap between the current-assumption lapse year and the guaranteed lapse year tells you how much risk you are carrying. Our guide to reading an in-force illustration explains what each column means.
Why Buyers Like Universal Life
From a buyer’s perspective, UL has an attractive feature: flexible premiums. A buyer can often fund the policy at a minimum level calculated to keep it in force without overpaying, which improves the economics compared with a fixed-premium contract. That flexibility is part of why UL dominates the settlement market.
Buyers price the death benefit against projected premium outlay and life expectancy. What helps your offer: a larger face amount, an insured in their senior years, health impairments that shorten life expectancy, and a policy that can be carried efficiently. What hurts: very high required premiums relative to face, a large outstanding loan, or a policy so well funded that it is cheaper for you to keep than to sell.
Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, about 4 to 8 times cash surrender value. On a struggling UL policy with a depleted account value, that multiple can look dramatic — because the surrender figure it is measured against is so small.
| Illustration Scenario | What to Ask For | What It Tells You |
|---|---|---|
| Current assumptions | Values if today’s credited rate and charges continue | Your realistic lapse year at the premium you pay now |
| Guaranteed assumptions | Minimum credited rate, maximum charges | The earliest the contract could lapse — your true worst case |
| Premium to carry to maturity | Solve for premium to age 100 or maturity | What it would actually cost to keep the policy for life |
| Minimum premium to avoid lapse | Solve for premium to hold the policy one more year | What keeps the policy alive while you evaluate options |
| Net cash surrender value today | Account value less surrender charge and loan | The number any settlement offer has to beat |
Read Your Account Value Honestly
Two numbers on a UL statement look similar and are not: the account value and the net cash surrender value. Account value is the internal balance. Net cash surrender value is that balance minus any remaining surrender charge and minus any outstanding loan — the amount the company would actually pay you to close the policy today.
On an older UL policy, surrender charges have usually run off, so the two figures converge. But if the account value has been drained by rising insurance costs, the surrender check may be a few thousand dollars on a policy with a six-figure death benefit. That is precisely the situation where selling beats surrendering by the widest margin. Compare the two paths in settlement vs. surrender.
Watch the Grace Period — Do Not Let It Lapse While You Decide
A universal life policy lapses when the account value can no longer cover the monthly deductions and the grace period runs out. Once it lapses, there is nothing to sell. Reinstatement is sometimes possible but usually requires evidence of insurability, which is exactly what an impaired insured cannot easily provide.
So if you have received a lapse warning, keep the policy alive while you evaluate. Pay the minimum required to hold the grace period open, or use available account value to do it. A settlement takes 60 to 120 days end to end; a grace period is typically far shorter. Timing matters more here than in almost any other policy type.
Documents, Process, and Timing
To start, send only the policy cover page — insurer, policy number, face amount, issue date. That is enough for a free review to tell you whether the policy is in a realistic range. If it is, the next items are your most recent annual statement and the in-force illustrations described above, plus a HIPAA authorization so life expectancy can be estimated from medical records. Keep any release specific and revocable.
From there: documentation and underwriting, a written offer, contracts, independent escrow holding your funds, the recorded ownership change with the carrier, and release of payment. Roughly 60 to 120 days total, with a state rescission window afterward in most cases. Ask for both the gross offer and the net-to-you figure after any broker commission and loan payoff.
Other Options to Weigh First
Selling is not automatically the answer. If the death benefit still protects someone who depends on it and the higher premium is affordable, keep the policy. If you only need to shed the premium, ask the carrier whether the contract allows a reduced face amount at a sustainable premium — a smaller death benefit you can actually keep beats a large one that lapses. Surrender is the fast, low exit. And some settlements allow a retained death benefit, ending premiums while preserving part of the coverage; see how the policy options work.
If you also hold Southern Farm Bureau whole life or a guaranteed UL contract, the analysis differs — see our guides to selling a whole life policy or a guaranteed universal life policy. For a free policy review, send the cover page or call (305) 209-7183. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Why did my Southern Farm Bureau universal life premium suddenly increase?
Most older universal life policies were illustrated at high interest assumptions that never materialized, while the internal cost of insurance rises every year with the insured’s age. When the account value can no longer absorb those charges, the carrier asks for a higher premium to keep the policy in force. This pattern is common across the industry, not specific to any one company.
Does the carrier have to approve the sale?
No. The policy is your personal property and the buyer purchases the contract from you. Southern Farm Bureau Life’s role is administrative — recording the new owner and beneficiary after closing. Pine Lake is not affiliated with, endorsed by, or acting on behalf of the company.
What exactly should I ask for when I call for an in-force illustration?
Ask for the illustration at current assumptions and at guaranteed assumptions, plus the premium required to carry the policy to maturity. Request the lapse year under each scenario. Those numbers tell you how much time you actually have and what keeping the policy would really cost.
My policy is about to lapse. Is it too late to sell?
Not necessarily, but move quickly. A lapsed policy cannot be sold, so keep it in force while you evaluate — pay the minimum needed to hold the grace period open if you can. A settlement typically takes 60 to 120 days, which is longer than most grace periods.
Why is universal life the most common type of policy sold?
Two reasons. Rising costs of insurance and disappointing credited rates push many UL policies toward unaffordable premiums, so owners look for an exit. And flexible premiums let a buyer fund the policy efficiently, which improves the economics of the purchase.
How much could my policy be worth?
Federal research found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value. Because a struggling UL policy often has very little surrender value left, the difference between selling and surrendering can be especially large. Only a review of your actual numbers can tell you.
Does an outstanding policy loan disqualify me?
No, but it reduces your proceeds. The loan is repaid from the transaction at closing. Ask up front for both the gross offer and the net-to-you amount after loan payoff and any commissions, in writing.
What do I send to get started?
Just the policy cover page showing the insurer, policy number, face amount, and issue date. That is enough for a free, no-obligation review. If the policy looks like a candidate, the in-force illustration is the next step.
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 It Works Policy Options
- What Policies Qualify For Life Settlement
- Sell My Southern Farm Bureau Whole Life Policy
- Sell My Southern Farm Bureau Guaranteed 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.