Yes. A Thrivent variable universal life policy can be sold through a life settlement, because the contract is your property and a buyer purchases it from you; the carrier’s consent to the sale is not required. Thrivent’s role is to record the ownership change afterward, the same as it would for any other transfer.
Variable universal life is the version of universal life where your account value is invested in subaccounts you select, typically mutual-fund-like portfolios covering stocks and bonds. The upside is real. So is the downside, and unlike an indexed contract there is normally no floor protecting the account value from market losses. Combine a bad stretch of market performance with cost-of-insurance charges that climb every year and you get the classic VUL failure pattern: an account value that quietly drains toward zero while the carrier’s notices ask for more premium.
Thrivent is a member-owned fraternal benefit society with Lutheran roots, formed when Aid Association for Lutherans and Lutheran Brotherhood combined in the early 2000s and later opened to Christians more broadly; life coverage is generally issued as a membership certificate. Verify your own contract details with the service number on your statement (as of 2026). Pine Lake Life Solutions is not affiliated with Thrivent.
In This Article
The Two Forces Working on Your Account Value
Every month, two things happen inside a variable universal life contract and they pull in opposite directions.
Your subaccounts move with the markets, up or down, net of the fund-level expenses and the separate account charges the contract imposes. And the insurer deducts a cost-of-insurance charge based on the net amount at risk and your attained age, plus administrative and rider charges. The cost-of-insurance figure rises every single year regardless of what markets do.
In good years the investment gains outrun the deductions and the account value grows. In flat or negative years the deductions come out of a shrinking base, which means the policy needs a larger percentage gain just to get back to even. Do that a few times in a row in your seventies, when the insurance charge is climbing fastest, and the policy can go from comfortable to critical in a short period. Owners are often shocked, because the last statement they read carefully was years earlier when the numbers still looked fine.
Documents Specific to a Variable Contract
A variable universal life review needs everything a fixed universal life review needs, plus a couple of things unique to variable products.
Start with the annual statement: current account value, cash surrender value, any loan balance, subaccount allocations, and the itemized monthly deductions. Then request an in-force illustration from the carrier. Because performance is not fixed, ask for it at several assumed gross rates, including zero percent, and at both current and guaranteed maximum charges. The zero percent version is the one that tells you how long the policy survives if markets do nothing.
Also locate the prospectus and any supplements for the contract and its subaccounts. They disclose the separate account charges, fund expenses and surrender charge schedule that explain where your money is actually going. And check whether a surrender charge is still in effect, because a contract still inside its surrender charge period has an artificially low surrender value, which changes what a settlement comparison looks like.
How Buyers Price a VUL Policy
Buyers value the death benefit and the cost of keeping it alive. With variable universal life, that second piece is harder to pin down because future account value depends on markets, so buyers tend to price conservatively and assume they will fund the policy themselves rather than count on investment performance.
The practical implication for you: the death benefit and the life expectancy estimate carry most of the weight, and a large remaining account value is helpful but not the driver people assume it is. Federal research on the market (GAO-10-775) found sellers typically received about 10 to 35 percent of face value, on the order of four to eight times cash surrender value. A struggling VUL often has little surrender value left after a bad market stretch, which is precisely why owners are surprised the contract has any market value at all.
Compare the paths on our page covering settlement versus surrender, and see how cash surrender value works for what the carrier would actually hand you.
| Assumed Gross Return | What the Illustration Reveals | Why It Matters to You |
|---|---|---|
| 0% | How long the policy lasts with no market help | The realistic worst case for planning |
| Low single digits | Funding needed in a modest-return world | Closest to a conservative baseline |
| Mid single digits | Premium needed if markets cooperate | Shows the best plausible case, not a promise |
| Guaranteed maximum charges | Highest charges the contract permits | Your true downside exposure |
| Reduced face amount | Lower cost of insurance | Whether shrinking coverage saves the policy |
Reallocating Is Not a Rescue Plan
A common instinct when a variable policy is in trouble is to move the subaccounts around, either into something more aggressive to chase the shortfall or into a money market to stop the bleeding. Both instincts can make the situation worse.
Chasing returns raises the odds of another drawdown at exactly the point where the policy cannot absorb one. Moving everything to cash guarantees the account value grows slower than the rising insurance charges, which turns a possible failure into a scheduled one. Neither choice changes the fundamental arithmetic, which is that the cost of insurance keeps climbing.
The decisions that actually change the outcome are different: pay materially more premium, reduce the face amount so the insurance charge falls, exchange into a guaranteed product if you qualify, surrender for what remains, or sell the contract. Our page on how the policy options work covers structures including retained death benefit, where premiums end but your family keeps part of the coverage.
Fraternal Paperwork Notes
Because Thrivent is a fraternal benefit society, your document may be titled a certificate, you may be described as a member, and the contract may reference the society’s bylaws. Ownership can still be transferred. Before closing a sale, confirm with the service line which change-of-ownership form applies to a variable certificate, whether a signature guarantee or notarization is required, and whether any membership-linked provisions operate differently when a non-member owns the contract.
Variable products add one more layer: they are securities as well as insurance, so the servicing process may involve additional forms or acknowledgments. Ask specifically about that and get the requirements confirmed in writing. Verify current procedures directly with the carrier rather than assuming, since these change over time.
Who Qualifies and When Selling Makes Sense
The market looks for an insured roughly 65 or older, or younger with significant health changes since issue, a death benefit of $100,000 or more, and a contract past its contestability period. Health at the time of sale drives value more than anything else.
Selling makes sense when the coverage is no longer needed, when funding it competes with living expenses or care costs, or when a lump sum would solve a real problem such as paying for assisted living or a Medicaid spend-down. Keeping the policy makes sense when someone still depends on the death benefit and you can genuinely afford the premium the in-force illustration says is required.
See what policies qualify for a life settlement, and if you hold other Thrivent coverage, our guides to selling a Thrivent universal life policy or a Thrivent indexed universal life policy.
Timeline and What to Insist On
Plan on roughly 60 to 120 days from application to funded payment, with document gathering and the life expectancy estimate as the slowest stages.
Insist on an itemized gross offer and net proceeds after all commissions and fees, an independent escrow agent holding your funds until the carrier confirms the recorded ownership change, and a clear statement of your rescission rights under your state’s law. Read any HIPAA authorization before signing it; it should name who receives records and be revocable.
To begin, send the certificate cover page, which shows the insurer, contract number, face amount and issue date, for a free policy review. Or call (305) 209-7183. This page is education only and is not legal, tax or investment advice.
Frequently Asked Questions
Can a variable universal life policy be sold even if the account value has dropped?
Yes. Buyers are primarily purchasing the death benefit and taking on the cost of keeping the policy in force, so a depleted account value does not by itself disqualify the contract. In fact many policies reach the secondary market precisely because performance disappointed. What matters most is the death benefit, the insured’s age and health, and the premium required going forward.
Why did my VUL get into trouble?
Two forces work against each other: subaccount performance, which can be negative, and cost-of-insurance charges, which rise with age every year. A flat or down market means deductions come out of a shrinking base, so the policy needs larger gains just to break even. In the insured’s seventies and eighties, when charges climb fastest, this can unravel quickly.
Does Thrivent need to approve the sale?
No. The contract is yours to sell and the buyer purchases it from you. Thrivent records the change of ownership and beneficiary once the required forms are filed and accepted. Because variable products are also securities, ask the service line whether any additional acknowledgments are needed.
What is Thrivent’s corporate structure?
Thrivent is a member-owned fraternal benefit society with Lutheran roots, formed when Aid Association for Lutherans and Lutheran Brotherhood combined in the early 2000s, with membership later broadened beyond Lutherans. Coverage is generally issued as a membership certificate. Verify current structure, ratings and service details with Thrivent directly as of 2026.
Should I move my subaccounts to cash to protect the policy?
Moving to cash stops market losses but guarantees the account value grows slower than the rising insurance charges, which usually turns a possible lapse into a scheduled one. Chasing returns raises the risk of another drawdown the policy cannot absorb. The choices that actually change the outcome are more premium, a smaller face amount, an exchange, a surrender, or a sale.
Do surrender charges affect what I should do?
They can. If the contract is still inside its surrender charge period, the cash surrender value is artificially low, which makes surrendering the worst option and can make a settlement comparison look even more favorable. Check the surrender charge schedule in your prospectus or ask the carrier where you stand.
How much might a settlement pay?
Federal research on the market (GAO-10-775) found sellers typically received about 10 to 35 percent of face value, roughly four to eight times cash surrender value. Your actual offer depends on the death benefit, the projected premium stream and a life expectancy estimate from medical records. A free review is the only way to know.
What documents should I request first?
Your most recent annual statement and an in-force illustration run at several assumed gross rates, including zero percent, at both current and guaranteed maximum charges. Also locate the prospectus for the contract and subaccounts to see the charges in detail. To simply start a free review, the policy cover page is enough.
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Related Reading
- Life Settlement Vs Surrender
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- What Policies Qualify For Life Settlement
- Sell My Thrivent Universal Life Policy
- Sell My Thrivent Indexed 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.