Yes — a Thrivent survivorship (second-to-die) contract can generally be sold in a life settlement when the contract and both insureds qualify, because life insurance is transferable property owned by the policyholder rather than by the issuer. With a fraternal benefit society there is one extra item on the checklist: confirm in writing whether your certificate contains any restriction on assignment or transfer of ownership, since fraternal contracts are written under a different statutory framework than commercial insurance policies.
Thrivent is a fraternal benefit society, not a stock or mutual insurance company. It was formed in 2002 through the merger of Aid Association for Lutherans, founded in 1902, and Lutheran Brotherhood, founded in 1917, and it operates from Minneapolis. Membership was historically limited to Lutherans and was later broadened to Christians generally. Fraternal societies issue certificates of insurance to members and are governed by their bylaws as well as by state insurance law, which is why the assignment question deserves a direct answer from the service center as of 2026 rather than an assumption either way.
This guide explains what the fraternal structure does and does not change, how buyers value a joint-life contract, what happens after a first death, and when keeping or surrendering is the better decision. Pine Lake Life Solutions is not affiliated with Thrivent. Nothing here is legal, tax or investment advice.
In This Article
- What Being a Fraternal Certificate Actually Changes
- Dividends, Riders, and the Value Already Inside the Certificate
- Second-to-Die Valuation: Two Lives, One Payment
- When a Second-to-Die Contract Has Done Its Job
- The First Death Is a Repricing Event
- Trust Ownership, Contestability, and Realistic Numbers
- Getting a Free Review of Your Certificate
- Frequently Asked Questions
What Being a Fraternal Certificate Actually Changes
Start with what does not change. A fraternal life certificate provides a death benefit, has an owner, names beneficiaries, and represents value that can generally be surrendered, borrowed against or transferred. The Supreme Court’s 1911 decision in Grigsby v. Russell — recognizing life insurance as transferable property — is the backdrop for all life coverage.
What can differ is the paperwork and the terms. Fraternal societies operate under bylaws that are incorporated into the certificate, and those bylaws can be amended by the society’s governing process. Membership status, member benefits and any participation features are tied to the member, and would not travel to an institutional purchaser. Some fraternal certificates also contain assignment provisions that are worded differently from a commercial policy’s.
So the first request to the service center is specific: “Does my certificate permit an absolute assignment or change of ownership to an unrelated third party, and what form is required?” Ask for the answer and the form in writing. If the answer is no or conditional, that governs — and it is better to learn it in week one than in week ten. See what an absolute assignment is.
Dividends, Riders, and the Value Already Inside the Certificate
Many fraternal life certificates are participating, meaning they may receive dividends that can be taken in cash, used to reduce premiums, left to accumulate at interest, or applied to buy paid-up additions. Before considering a sale, find out how your dividends have been applied and what the accumulated value is.
That matters two ways. First, dividend elections change the surrender value a sale must beat and can materially raise it if paid-up additions have been accumulating for decades. Second, redirecting dividends is itself an option — applying them to premium can reduce or eliminate an out-of-pocket cost that is driving the whole conversation. Read what happens when dividends are cut and settlement versus surrendering paid-up additions.
Also inventory the riders. Waiver of premium, accelerated death benefit for terminal or chronic illness, and long-term care riders can each provide a route that does not involve selling anything. Ask the service center to list every rider on the certificate, whose health triggers it, and what it pays — on a second-to-die contract, riders are often tied to the second death or require both insureds to qualify.
Second-to-Die Valuation: Two Lives, One Payment
A survivorship contract pays nothing at the first death. To value it, a buyer commissions life expectancy reports on both insureds, blends them into a joint-and-last-survivor curve, projects the premium required across that curve, and discounts the eventual benefit to present value.
Because the joint curve runs long, the buyer funds more premium years and applies a heavier discount. Offers therefore land lower, as a share of face value, than on comparable single-life policies. Published life settlement ranges largely reflect single-life experience, so expect the low end.
Fewer institutional buyers underwrite joint mortality at all, which thins the bidding and further softens price. That is a reason to shop the case carefully and insist on written offers with all compensation disclosed — see how buyers price a policy and provider versus broker.
| Feature | Commercial life policy | Fraternal certificate | What to verify |
|---|---|---|---|
| Issuer type | Stock or mutual insurer | Fraternal benefit society | Named issuer on the contract |
| Governing terms | Policy contract and state law | Certificate, society bylaws and state law | Whether bylaws are incorporated |
| Ownership transfer | Generally permitted by assignment | Generally permitted; confirm certificate terms | Written confirmation and required form |
| Membership benefits | Not applicable | Tied to the member | What is lost on transfer |
| Dividends | On participating policies | On participating certificates | Current election and accumulated value |
When a Second-to-Die Contract Has Done Its Job
These contracts fund something payable at the second death, usually estate liquidity or inheritance equalization. Signs the purpose has ended: federal estate tax exemption levels moved and the estate is no longer taxable (verify current thresholds with a tax advisor as of 2026, and check state estate or inheritance taxes, which several states impose far below the federal threshold); an ILIT that now exists purely to administer the certificate; a completed family business succession or an unwound buy-sell agreement; or adult children who no longer depend on the benefit.
Add the practical case: premiums that were easy at 62 and are difficult at 84. Before selling, price the non-sale routes — reduced paid-up coverage, a lower face amount, applying dividends to premium — because for a participating certificate those options are often stronger than owners expect. See reduced paid-up versus settlement.
The First Death Is a Repricing Event
When one insured dies, the contract behaves like a single-life policy on the survivor: one mortality to underwrite, a nearer expected payout, and a lower premium for a buyer to carry. Market value on the same face amount often improves substantially, especially when the survivor is elderly or in declining health.
Notify the society, request an updated in-force illustration or values statement reflecting the change, and ask whether the certificate contains a split option or a provision responding to estate tax law changes. Then compare the alternatives. Families frequently lapse survivorship coverage in the year after a first death because it produced no payout; in market terms that is often the moment it is worth the most. Read what happens after the first death.
Trust Ownership, Contestability, and Realistic Numbers
If an irrevocable life insurance trust owns the certificate, the trustee is the seller: signing, receiving proceeds for the trust, and distributing under the trust document. Trustees should document carrying cost, surrender value, offers obtained and the reasoning, and confirm whether the instrument requires beneficiary notice, consent or court approval. Expect requests for the trust agreement and amendments, trustee authority, the trust EIN, and the Crummey notice history supporting annual-exclusion treatment of premium gifts.
The universal gates apply here too: the contract must be past its two-year contestability period, measured from issue or from any reinstatement, and face amounts under $100,000 rarely attract institutional interest. Small final-expense-scale coverage, from any issuer, almost never finds a buyer — for those, surrender value or paid-up options are the realistic comparison. Where a contract qualifies, GAO research (GAO-10-775) found sellers typically received about 10% to 35% of face value, averaging roughly four to eight times cash surrender value, with survivorship cases at the low end. More: selling an ILIT-owned policy.
Getting a Free Review of Your Certificate
Send the certificate’s cover page — issuing society, certificate or policy number, face amount, issue date and both insureds’ names — and a specialist can tell you whether it is a realistic candidate. Because of the assignment question specific to fraternal contracts, it is worth requesting the society’s written confirmation on transferability at the same time.
If the case proceeds, plan on 60 to 120 days, at the longer end for joint-life files: HIPAA authorizations and medical records for both insureds, independent life expectancy reports, the in-force values or illustration, written offers, contracts, and independent escrow holding funds until the ownership change is recorded. Most states then provide a rescission window.
To start a free, no-obligation review, send the cover page or call Pine Lake Life Solutions at (305) 209-7183. Pine Lake is not affiliated with Thrivent; this page is educational information only.
Frequently Asked Questions
Can a fraternal benefit society certificate be sold at all?
Generally yes, since life insurance is transferable property, but fraternal certificates are governed by the society’s bylaws as well as state law. Ask the service center in writing whether your certificate permits an absolute assignment or change of ownership to an unrelated third party, and what form is required.
Do I lose membership benefits if I sell?
Membership status and member benefits are tied to the member, not to an institutional purchaser, so they would not transfer with the certificate. Ask Thrivent to explain in writing what changes for you if ownership of the certificate is transferred.
What should I check before considering a sale?
Dividend history and election, accumulated paid-up additions, every rider on the certificate and what triggers it, the current surrender value, and the premium required to carry the contract to the later of the two life expectancies. Participating contracts often have stronger non-sale options than owners expect.
Why do second-to-die contracts receive lower offers?
The benefit is payable only after both insureds die, so buyers model a joint-and-last-survivor curve, fund premiums over a longer horizon, and discount the payout from further out. Fewer institutional buyers underwrite joint mortality, which reduces competition for the case.
Does the value change after the first insured dies?
Usually it improves. The contract becomes economically a single-life policy on the survivor, which buyers underwrite more readily and value closer to payout. Notify the society, request updated values, and have the certificate reviewed before surrendering or lapsing.
Could a rider be a better option than selling?
Sometimes. Waiver of premium, accelerated death benefit and long-term care riders can provide relief without a sale. On survivorship contracts these riders are frequently tied to the second death or require both insureds to qualify, so ask for the exact terms in writing.
Our ILIT owns the certificate. Who signs?
The trustee signs as seller and the trust receives the proceeds, distributed under the trust document. The trustee should document the comparison of keeping, surrendering and selling and confirm whether beneficiary notice, consent or court approval is required.
How do I get started?
Send the certificate cover page showing the issuing society, certificate number, face amount, issue date and both insureds’ names, and request written confirmation of transferability. That supports a free, no-obligation assessment. Call (305) 209-7183 with questions.
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Related Reading
- Can I Sell A Survivorship Life Policy
- Survivorship Policy First Death
- What Is An Absolute Assignment
- Whole Life Dividends Cut
- Life Settlement Vs Surrendering Paid Up Additions
- Reduced Paid Up Vs Settlement
- Sell Ilit Trust Owned Policy
- How Life Settlement Buyers Price A Policy
- Life Settlement Provider Vs Broker
- Buy Sell Agreement Policy Unneeded
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.