Yes, a universal life policy issued by Standard Insurance Company can be sold, and you do not need the carrier’s blessing to do it. The policy is your property. In a life settlement, a licensed buyer purchases the contract, becomes the owner and beneficiary, takes over the premiums, and collects the death benefit later. The company’s job is simply to record the ownership change on its books.
Universal life is the type most frequently sold, and that is not an accident. UL deducts a monthly cost of insurance that rises with the insured’s age, plus policy charges, from an account value. When the account value stops keeping up, the carrier sends a notice asking for far more premium than the original illustration implied. Owners in their late seventies and eighties are the ones who usually get that letter.
This page explains what a buyer actually evaluates on a UL contract, why the in-force illustration matters more than anything else you can send, and when keeping or surrendering the policy is the smarter move. Pine Lake Life Solutions is not affiliated with The Standard. Send the cover page of your policy and we will review it free.
In This Article
The Company Behind the Policy
The Standard is Standard Insurance Company, a Portland, Oregon insurer and the primary subsidiary of StanCorp Financial Group. StanCorp is best known for group disability, group life, dental and vision, retirement plan services, individual disability, individual annuities, and commercial mortgage lending. Individual life has never been the center of its business, so a policy branded The Standard is worth tracing carefully.
StanCorp was acquired by Meiji Yasuda Life Insurance Company, announced in July 2015 for roughly $5 billion and completed in March 2016 following Oregon regulatory approval. The Standard has continued to operate under its own name and management since then.
Because product lines get sold, reinsured, and reassigned across the industry, do not assume the name on the policy is the company answering the phone in 2026. Check your latest annual statement, call the service number printed on it, and confirm the administrator, the mailing address for change of ownership forms, and the current financial strength rating with A.M. Best directly.
How Universal Life Loses Altitude
A UL policy is essentially an account with an insurance charge deducted every month. In the early years the charge is low and the account value grows. Decades later the cost of insurance can be many times higher, because it is priced on attained age and on the amount of pure insurance the carrier is providing.
Two things then compound. If credited interest is lower than the rate assumed when the policy was sold, growth falls short. And if you paid the planned premium rather than the maximum, there is less cushion. The result is a policy that is technically flexible but practically headed toward lapse unless funded more heavily.
This is why UL owners so often face a real decision rather than a theoretical one. The choice is not whether to keep a free asset. It is whether to spend thousands more per year, cut the death benefit, take the surrender value, walk away, or sell.
Request the In-Force Illustration First
An in-force illustration is a carrier projection of your policy’s future values at current charges. Ask for two: one showing the premium needed to keep the policy in force to a stated age, and one showing what happens if you continue paying your current premium. Together they tell the whole story.
Buyers use these to calculate their carrying cost. A policy that can be maintained with small minimum premiums, or one with a no-lapse or secondary guarantee, is more valuable than an identical death benefit that needs heavy funding. If your contract has a guarantee rider, say so early because it can materially change an offer.
Carriers can take several weeks to produce illustrations, and incomplete request forms get returned. Start that request at the beginning of your evaluation, not after you have an offer on the table.
| Factor a buyer reviews | Where it comes from | Effect on offer |
|---|---|---|
| Life expectancy estimate | Medical records reviewed by independent underwriters | Largest single driver of value |
| Death benefit | Policy pages and annual statement | Usually needs to be $100,000 or more |
| Premium required to keep policy in force | In-force illustration at current charges | Lower cost means a higher offer |
| No-lapse or secondary guarantee | Policy riders | Can raise value by capping carrying cost |
| Outstanding policy loan | Carrier loan payoff statement | Reduces net proceeds, usually paid at closing |
| Cash surrender value | Annual statement | Sets the floor an offer must beat |
What Determines Whether You Qualify
Three factors dominate. First, the insured’s age and health, translated into a life expectancy estimate by independent underwriters who review medical records. Second, the death benefit, with most buyers looking for $100,000 or more. Third, the cost of keeping the policy in force.
Other details can matter. An outstanding policy loan reduces the net death benefit and is usually paid off at closing from the proceeds. Policies inside a trust or owned by a business require extra signatures. Recently issued policies may sit inside a contestability period, which buyers treat cautiously.
Where offers land: commonly 10 to 35 percent of face value. A GAO study found sellers received roughly four to eight times the cash surrender value they would have received from the carrier. Ranges are not promises, and a meaningful share of policies submitted receive no offer at all.
Running the Numbers Before You Decide
Here is a labeled hypothetical. A 77-year-old owns a $650,000 UL policy with $41,000 of cash surrender value. The in-force illustration shows the account value exhausting in about five years at the current $12,000 annual premium, and about $21,000 a year would be needed to carry it to age 95.
Surrendering yields $41,000 and ends the coverage. Reducing the face amount to roughly $300,000 might make the current premium sustainable while preserving some benefit for heirs. A settlement in the 10 to 35 percent range would hypothetically be $65,000 to $227,500 before fees, which is why it is worth pricing before signing anything.
Those are illustrative figures only. The rule to remember is that surrender is irreversible. Once the contract is gone there is nothing left for a buyer to bid on, so compare first. Our settlement versus surrender guide lays out both paths.
Process, Paperwork, and Timing
Gather the policy and any riders, the most recent annual statement, the in-force illustrations, a loan payoff figure if applicable, and signed HIPAA authorizations. From there the transaction moves through underwriting, bidding, offer acceptance, closing documents, escrow, and funding after the carrier confirms the change of ownership.
Expect 60 to 120 days end to end. Medical records drive the schedule more than anything else. States generally provide a rescission period after funding during which you can return the money and undo the sale.
Bring in your own professionals for the parts that are not ours to advise on. A CPA can explain how proceeds are taxed relative to your basis in the policy. An elder law attorney can address how a lump sum interacts with Medicaid eligibility and spend-down planning.
Red Flags and Reasons to Keep the Policy
No credible buyer quotes a firm number before underwriting is complete, and no credible party charges an upfront fee to look at your policy. Ask how the person you are speaking with is paid and whether your policy will be shown to more than one buyer. Read what a life settlement broker is so you understand who is representing whom.
Keep the coverage when it is still doing real work: a spouse who would be exposed without it, estate liquidity, or a special needs beneficiary. If the only problem is premium, ask the carrier about reduced paid-up options or lowering the face amount. If the insured is terminally ill, an accelerated death benefit rider may be far faster than a settlement.
Pine Lake Life Solutions provides education and free policy reviews and is not affiliated with The Standard or Standard Insurance Company. Nothing here is legal, tax, or investment advice. Call (305) 209-7183 to talk it through.
Frequently Asked Questions
Does The Standard have to agree to the sale?
No. A life insurance policy is personal property and you may transfer ownership. The carrier processes the change of ownership and beneficiary forms after closing and updates its records, nothing more.
Who owns Standard Insurance Company?
It is the principal subsidiary of StanCorp Financial Group in Portland, Oregon. Meiji Yasuda Life Insurance Company announced the acquisition of StanCorp in July 2015 and closed it in March 2016, with The Standard continuing under its own brand.
Why does my universal life policy keep asking for more premium?
The monthly cost of insurance rises with the insured’s age and is deducted from the account value. When crediting rates run below the original assumptions, the account value drains and the carrier requests more premium to prevent a lapse.
What is the single most important document?
The in-force illustration at current charges. It tells a buyer exactly what it will cost to keep the policy alive, which drives the offer. Request it early because carriers can take weeks to produce one.
How much can a universal life policy sell for?
Commonly 10 to 35 percent of the death benefit. A GAO study found sellers received roughly four to eight times the cash surrender value. Offers vary widely and some policies get no bids at all.
Can I sell only part of my policy?
Sometimes. Partial arrangements exist where a portion of the death benefit is retained for your beneficiaries. Availability depends on the buyer and the policy, so ask about it specifically rather than assuming it is on the table.
How long will it take to get paid?
Typically 60 to 120 days from submission to funding. Medical record retrieval and carrier processing of ownership forms are the two slowest steps, and funds are held in escrow until the transfer is confirmed.
Are the proceeds taxable?
It depends on your basis in the policy and the amount received. Federal rules were revised in 2017 and treatment varies by situation, so ask a CPA about your specific numbers before you close the transaction.
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Related Reading
- Life Settlement Vs Surrender
- Cash Surrender Value Life Insurance
- What Is A Policy Loan
- What Is A Life Settlement Broker
- What Policies Qualify For Life Settlement
- Sell My The Standard Group 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.