Yes — if you own a Unum whole life policy, you can sell it in a life settlement. The contract is your property, the buyer purchases it from you, and Unum’s permission is not required. That principle comes from Grigsby v. Russell, the 1911 Supreme Court decision holding that a life insurance policy is transferable property, and it applies to every carrier equally.
The Unum-specific wrinkle is ownership. Unum Group is primarily a workplace benefits organization — formed in 1999 when UNUM Corporation, descended from Maine’s Union Mutual of 1848, merged with Provident Companies of Chattanooga, founded 1887 — and a large share of the permanent life coverage carrying a Unum or Colonial Life name was sold at the worksite as voluntary or supplemental coverage. Some of that is individually owned and fully assignable; some is not. Reading your own documents is step one, not step three.
This guide covers how to confirm ownership, how whole life’s guaranteed cash value shapes the settlement-versus-surrender comparison, and what to gather. Pine Lake Life Solutions is not affiliated with Unum, Colonial Life, or any Unum Group subsidiary.
In This Article
- Confirm You Own the Policy, Not a Certificate
- Which Unum Company Holds It
- Guaranteed Cash Value Sets the Number to Beat
- Reduced Paid-Up: The Option Inside Your Contract
- Documents, Loans, and the Assignment
- Timeline and What Protects You
- Get the Right Professionals Involved
- Frequently Asked Questions
Confirm You Own the Policy, Not a Certificate
Worksite permanent life is often designed to be individually owned and portable — you keep it if you change jobs, and you pay the premium directly after that. If your documents are a policy contract naming you as owner, you have exactly what a settlement requires.
If instead you hold a certificate of coverage under an employer’s master contract, the coverage is group-based and generally cannot be assigned or sold. In that case the path runs through conversion, which we cover in the guide to selling a Unum group life policy.
The quickest test: who bills you, and does any document say “certificate”? Direct billing to you plus a contract naming you as owner means individual coverage. Payroll deduction plus a certificate means group. When in doubt, call the service number on your premium notice and ask them to state, in writing, who the policy owner of record is.
Which Unum Company Holds It
Unum Group underwrites through several separately licensed insurers: Unum Life Insurance Company of America, First Unum Life Insurance Company for New York business, Provident Life and Accident, and Colonial Life & Accident, among others. Your contract names the issuer, and change-of-ownership forms, illustration requests, and service all route to that entity specifically.
Unum has also moved risk on legacy blocks through reinsurance, including reinsuring its closed block of individual disability business to a third party in 2020 and pursuing similar treatment for long-term care exposure (verify current details as of 2026). Reinsurance does not alter your contractual rights, but it can change which administrator you deal with.
As for financial strength, Unum’s US insurance subsidiaries have carried A.M. Best ratings in the “Excellent” range; confirm the current rating at ambest.com if it matters. Buyers care about the carrier’s ability to pay claims decades out, so a solid rating helps your policy price.
Guaranteed Cash Value Sets the Number to Beat
Whole life comes with a contractual floor: cash value that accumulates on a guaranteed schedule, plus dividends if the policy is participating. That floor makes the decision a three-way comparison — settlement offer versus cash surrender value versus reduced paid-up coverage.
Surrender value is the benchmark. It is what the insurer will hand you for cashing in, so a settlement only makes sense above it. Federal GAO research on the market (GAO-10-775) found sellers typically received about 10% to 35% of face value, on average roughly 4 to 8 times cash surrender value.
Dividends complicate this. Paid-up additions purchased over many years raise both the death benefit and the surrender value, and a higher surrender value narrows the spread a buyer has to work with. The best-pricing profile is a large face amount with moderate cash value and premiums the owner would rather stop paying. See how cash surrender value works and the short definition.
| Option | What You Get | Coverage After | Best When |
|---|---|---|---|
| Keep paying premiums | Nothing now | Full death benefit | A dependent still needs the coverage |
| Reduced paid-up insurance | No cash; premiums stop | Smaller, fully paid death benefit | The premium is the only problem |
| Extended term insurance | No cash; premiums stop | Full face amount for a limited period | You need full coverage a few more years |
| Surrender | Guaranteed cash surrender value | None | Small policy; no market interest |
| Life settlement | Lump sum, typically 10-35% of face value (GAO-10-775) | None, or partial with a retained death benefit | Coverage not needed; cash needed for care |
Reduced Paid-Up: The Option Inside Your Contract
Worksite whole life policies are often modest in face amount, which makes the nonforfeiture options especially relevant. Most whole life contracts let you stop paying premiums entirely and take a smaller, fully paid-up death benefit instead — no buyer, no medical records, no closing, no waiting.
Extended term insurance is the other standard choice: keep the full face amount, with no further premiums, for a limited number of years.
Either can be the correct answer when the premium is the only real problem. A settlement is the better answer when the coverage itself is no longer needed and cash is — typically for assisted living costs, in-home care, or a Medicaid spend-down. And keeping the policy is right when a surviving spouse or a dependent with special needs still relies on the death benefit and the premium remains affordable.
Documents, Loans, and the Assignment
To learn whether a sale is possible you need one page: the policy cover page showing insurer, policy number, face amount, and issue date. That is what the free review runs on. If the policy is a candidate, add your most recent annual statement — guaranteed cash value, dividend election, outstanding loan — and an in-force illustration from the issuing company.
If you have borrowed against the policy, get the current payoff. The loan plus accrued interest is deducted from any offer because the buyer takes the contract subject to the debt; see what a policy loan is.
The sale closes with an absolute assignment — a change of ownership and beneficiary recorded by the insurer. Ask the issuing company for its change-of-ownership packet early and confirm requirements, including any notarization, as of 2026. Small procedural details cause most rejected filings.
Timeline and What Protects You
Expect 60 to 120 days from application to funded payment. Free review in days; documentation in two to four weeks; medical records and life-expectancy estimates next; then written offers, contracts, escrow, and the ownership change.
Three safeguards matter more than anything else. Get every offer in writing. If a broker represents you, require commissions disclosed in both gross and net terms so you can see what actually reaches you. And never transfer ownership before the purchase price is in an independent escrow account. After closing, most states allow a rescission period in which you can return the money and undo the sale.
If the face amount is small, do not be discouraged from asking — but be realistic. Policies below $100,000 frequently fall short of what the secondary market will price, and reduced paid-up coverage may serve you better. See what policies qualify, or call (305) 209-7183.
Get the Right Professionals Involved
This page is educational. It is not legal, tax, or investment advice, and it cannot account for your state’s rules or your family’s finances.
Two professionals are worth their fee here. A tax professional, because whether any of the proceeds are taxable depends on your cost basis, the policy’s surrender value, and the sale price — and federal rules for calculating basis on a policy sale were revised in 2017. And an elder law attorney if Medicaid eligibility is anywhere in the picture, since a lump sum can affect eligibility and the look-back analysis is state-specific.
If you also hold universal life or term coverage from a Unum company, the analysis differs by type — see selling a Unum universal life policy or a Unum term policy.
Frequently Asked Questions
Do I need Unum’s permission to sell my whole life policy?
No. The policy is your personal property and can be sold, a right confirmed by the Supreme Court in Grigsby v. Russell in 1911. The insurer’s role is limited to recording the new owner and beneficiary after closing. Its own change-of-ownership forms must be completed correctly.
How do I know if I own my Unum policy or just hold a certificate?
A policy contract naming you as owner, with premiums billed directly to you, is individual coverage you can sell. A certificate of coverage with payroll-deducted premiums points to group coverage under an employer’s master contract, which generally cannot be assigned. Ask the carrier to confirm the owner of record in writing.
Which company actually holds my Unum policy?
Unum Group underwrites through separate insurers including Unum Life Insurance Company of America, First Unum for New York business, Provident Life and Accident, and Colonial Life. The issuer is named on your contract, and all forms route to that company. Confirm with the number on your premium notice.
How much more than surrender value might a settlement pay?
Federal GAO research found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value on average. Age, health, face amount, premium level, and accumulated cash value all move that figure. Only a review of the actual policy can narrow the range.
Does a large dividend-built cash value help my offer?
Not necessarily. Paid-up additions raise the surrender value a buyer must beat, which can compress the offer. Policies with a large death benefit and moderate cash value tend to price best. High cash value still benefits you directly if you choose to surrender instead.
What is reduced paid-up insurance and when is it better than selling?
It is a standard whole life option that lets you stop paying premiums and keep a smaller, fully paid death benefit. It is often better when the premium is your only problem and the coverage is still wanted. It requires no buyer, no medical records, and no closing period.
My policy has a loan against it. Can I still sell?
Yes. The loan balance plus accrued interest is deducted from the proceeds, since the buyer takes the policy subject to that debt. Request a current payoff figure from the carrier so you can compare selling and surrendering on accurate numbers.
How long does the process take from start to payment?
Typically 60 to 120 days. Gathering the in-force illustration and medical records takes the longest, followed by the change of ownership with the insurer. Funds should stay in independent escrow until the transfer is confirmed, and most states then allow a rescission period.
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Related Reading
- Cash Surrender Value Life Insurance
- Life Settlement Vs Surrender
- What Is A Policy Loan
- What Policies Qualify For Life Settlement
- Sell My Unum Group Life Policy
- Sell My Unum Universal 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.