Yes — a Transamerica survivorship (second-to-die) policy can be sold in a life settlement when the contract and its owner qualify, and Transamerica’s permission is not required, because the policy is transferable property belonging to its owner. On joint-life coverage, the practical questions are what the contract actually costs to keep and whether a buyer will find the economics workable.
Transamerica Corporation, with the landmark pyramid building in San Francisco as its longtime symbol and major operations in Cedar Rapids, Iowa and Baltimore, Maryland, has been a subsidiary of the Dutch insurer Aegon since 1999. It has written survivorship coverage across universal life and indexed universal life chassis, sold largely through independent producers, and it administers a substantial block of older universal life business.
One issue deserves particular attention on Transamerica universal life contracts: cost-of-insurance rates. Several U.S. carriers, including Transamerica, raised non-guaranteed cost-of-insurance charges on blocks of older universal life policies in the mid-2010s, and those increases drew litigation and class settlements. If your survivorship policy has seen a premium or charge increase, this page explains what to do about it. Pine Lake Life Solutions is not affiliated with Transamerica or Aegon, and nothing here is legal, tax or investment advice. Free policy review: send the policy cover page or call (305) 209-7183.
In This Article
Cost-of-Insurance Increases and What They Did to In-Force Policies
Universal life policies carry monthly deductions for cost of insurance, and most contracts allow the carrier to charge up to a guaranteed maximum while typically charging less. Beginning in the mid-2010s, several insurers, Transamerica among them, raised the non-guaranteed rates on certain older universal life blocks, citing changed mortality and interest assumptions. Owners saw cash value erode faster, required premiums jump, or policies projected to lapse years earlier than planned. Litigation followed across the industry, and class settlements were reached in a number of cases.
If your survivorship contract has been affected, three questions matter as of 2026: what the current monthly deductions actually are, what premium is now required to carry the policy to maturity on both lives, and whether you were part of any class settlement and what relief it provided. Ask Transamerica for these answers in writing and consult your own counsel about any settlement rights. The answers can reverse the keep-versus-sell conclusion in either direction — a policy that has become very expensive to hold may be a candidate for exit, while settlement relief may make it affordable again.
The Joint-Mortality Discount
Settlement value is a present-value calculation: death benefit, minus premiums paid while waiting, discounted to today. A survivorship contract pays only after the second insured dies, so a buyer must commission life expectancy reports on both insureds and model the joint distribution. The projected payout date is always later than either individual expectancy, and when one spouse is healthy it can sit decades out.
Consistent results follow. Survivorship offers generally fall below the roughly 10% to 35% of face value associated with qualifying single-life settlements (GAO-10-775), and many joint-life contracts draw no offer at all. A serious diagnosis affecting one insured moves the price much less than expected, because the healthier life still governs timing. And fewer institutional buyers underwrite joint-life paper, so competitive bidding is thin. See how buyers price a policy and what cost of insurance means.
The Turning Point: One Insured Has Died
After a first death, the contract behaves economically like single-life coverage on the survivor. One life expectancy, one medical file, a payout horizon no longer buried behind joint mortality. Providers who declined the policy while both spouses were living often reconsider.
Combine that with a cost-of-insurance increase and you have the classic candidate: a surviving spouse facing a sharply higher required premium on coverage bought to fund an estate tax the surviving estate will never owe. Gather the deceased insured’s death certificate and the most recent annual statement before requesting a review. See a survivorship policy after a first death and what to do about universal life cost increases.
| Symptom | Likely Cause | Question to Ask the Carrier |
|---|---|---|
| Cash value falling despite paying premiums | Higher monthly deductions | What are current cost-of-insurance charges? |
| Required premium jumped sharply | Repriced non-guaranteed charges | What premium now carries the policy to maturity? |
| Lapse notice on a policy you thought was safe | Secondary guarantee broken | Is the guarantee intact and what preserves it? |
| Projected lapse years earlier than planned | Assumption changes in the illustration | Send guaranteed and current-assumption runs |
| Notice about a class settlement | Litigation over charge increases | Ask your own counsel what relief applies |
When the Original Purpose No Longer Applies
Survivorship coverage is bought to solve a dated problem, and the problem expires. Watch for: the federal estate tax exemption rising above the couple’s projected taxable estate; a state estate or inheritance tax change, or a move to a state without one — thresholds vary widely, so confirm your state’s current rules with a tax advisor as of 2026; a business buy-sell obligation ending on a sale or retirement; illiquid holdings converted to cash; heirs who no longer need an inheritance backstop; or an ILIT whose annual gifting and notice routine has become an unwanted chore.
Once the purpose is gone, the decision is which exit is best. Related: when the estate plan changes and outliving the need for coverage.
Trust Ownership and Who Signs
If an irrevocable life insurance trust owns the policy, the trust is the seller and the trustee signs every document. Assemble the executed trust instrument, written confirmation of who serves as trustee today, and any successor appointments or resignations. Discovering that the named trustee died or resigned — and that a successor must be formally appointed — is a common source of delay.
Trustees are fiduciaries to the trust beneficiaries. A defensible record shows the alternatives evaluated, the reasoning that a sale serves beneficiaries better than continued premium funding, and any consents the instrument or state law requires. Where annual exclusion gifts funded premiums, Crummey withdrawal notices should have gone to beneficiaries each year; that history occasionally comes up in diligence and gaps can raise gift-tax questions the family’s own counsel should evaluate. Read: selling an ILIT-owned policy and trust-owned policy sales.
What to Request From Transamerica
Order a current in-force illustration and be specific: minimum premium to carry the contract to maturity on both lives; guaranteed-assumption alongside current-assumption; a breakdown of current monthly deductions including cost of insurance; the effect of any outstanding policy loan with projected interest; and written confirmation of whether any secondary or no-lapse guarantee remains in force and what premium schedule preserves it. On indexed survivorship contracts, request projections at more than one assumed crediting rate.
Confirm contestability at the same time. Two years from issue, and again from any reinstatement, the carrier may investigate and rescind for material misstatements, and both insureds’ application answers are in scope on a survivorship contract. Most state life settlement statutes impose a separate waiting period, commonly two years, with hardship exceptions that vary; confirm with your state insurance department. Background: in-force illustrations, contestability, documents needed.
Deciding What to Do
Keep the policy when the current required premium is affordable and a guarantee is confirmed intact — a guaranteed death benefit generally beats any lump sum a buyer would rationally pay on a distant payout. Reduce the face amount when the purpose survives but the new premium does not fit; that is often the cleanest response to a cost-of-insurance increase, and Transamerica can quote it. Surrender when the policy is small and no buyer interest exists, understanding it is normally the lowest-value exit. Sell when the coverage purpose is genuinely gone, the premium is unaffordable, a first death has occurred, or lapse for nothing is the realistic alternative.
Compare on paper with settlement versus keeping and surrender versus sale. Expect roughly 60 to 120 days for a completed transaction.
To find out where your contract stands, send the policy cover page — insurer, policy number, face amount, issue date and both insureds — for a free, no-obligation policy review, or call (305) 209-7183. Pine Lake Life Solutions is not affiliated with Transamerica and does not provide legal, tax or investment advice.
Frequently Asked Questions
Does Transamerica have to approve the sale?
No. The owner may transfer the policy, and the carrier records the ownership and beneficiary change after closing. Pine Lake Life Solutions is not affiliated with Transamerica or its parent, Aegon.
My premium went up sharply. Why?
Universal life policies carry non-guaranteed monthly deductions, and several carriers raised cost-of-insurance rates on older blocks in the mid-2010s. Ask Transamerica in writing for the current charges and the premium now required to carry the policy to maturity on both lives.
I received a class settlement notice. What should I do?
Read it and consult your own attorney about what relief may apply to your contract. Settlement terms differ by case and by policy form, and this page is not legal advice. Do not let a notice deadline pass while you decide.
Why are second-to-die offers lower?
No benefit is payable until both insureds have died, so buyers face a longer premium runway and a later payout, which lowers present value. Fewer providers underwrite joint-life paper, so competitive pressure on price is weaker as well.
What changes after one insured dies?
The contract is valued like single-life coverage on the survivor, with one life expectancy to underwrite and a nearer expected payout. Interest from buyers usually improves considerably. Provide the death certificate along with the latest annual statement.
Is reducing the face amount a real alternative?
Often the best one after a cost increase. A smaller death benefit at a sustainable premium can preserve part of the planning purpose without selling anything. Ask Transamerica to quote the reduced face amount and the premium it requires.
Who signs if a trust owns the policy?
The current trustee signs as seller. You will need the executed trust instrument and confirmation of any successor trustee appointments. Trustees should obtain independent legal advice about fiduciary duties and required consents.
What do I send for a free review?
The policy cover page showing the carrier, policy number, face amount, issue date and both insureds. That is enough for an initial screen at no cost and with no obligation to proceed.
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Related Reading
- Can I Sell A Survivorship Life Policy
- Survivorship Policy First Death
- Universal Life Cost Increases
- What Is Cost Of Insurance
- Sell Ilit Trust Owned Policy
- Can I Sell A Policy Owned By A Trust
- How Life Settlement Buyers Price A Policy
- What Is An In Force Illustration
- What Is The Contestability Period
- Surrender Vs Sell 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.