Yes — a Washington National universal life policy can be sold in a life settlement when you and the policy qualify, and the carrier’s consent is not part of the equation. The buyer acquires the contract directly from you. The owner’s right to transfer a policy is long-settled American law, and it applies identically to every insurer.
Universal life shows up in the secondary market more often than any other policy type, and the reason is baked into how the product works. A UL policy is an account: premiums go in, interest is credited, and the monthly cost of insurance is deducted out. Policies written in the 1980s and 1990s were illustrated at credited rates of 8% to 12%. Those rates did not hold. Most such policies have spent years crediting at or near their contractual guaranteed minimum while the cost of insurance climbed with the insured’s age.
The result arrives late and abruptly: a lapse notice in the insured’s 70s or 80s demanding a premium several times what the owner has been paying. This guide explains how to see that moment coming in your own paperwork, what a buyer values, and where Washington National’s history creates confusion worth clearing up first. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Washington National Insurance Company or CNO Financial Group. Education only, not legal, tax, or investment advice.
In This Article
- Washington National, Conseco, and Legacy Blocks
- The Arithmetic That Turns Old UL Into a Settlement Candidate
- Ask for the In-Force Illustration in Three Versions
- Target Premium, Minimum Premium, and What You Actually Pay
- What Raises and Lowers an Offer
- Documents to Gather
- Process, Timing, and Getting Started
- Frequently Asked Questions
Washington National, Conseco, and Legacy Blocks
Washington National Insurance Company traces back to 1911 and today operates as a CNO Financial Group subsidiary based in Carmel, Indiana. CNO was called Conseco until it renamed in 2010, and Washington National joined that family through Conseco’s late-1990s acquisition. Over the years the company has absorbed and serviced blocks from predecessor and affiliated carriers, which is why an older universal life contract may carry a company name on the policy jacket that no longer appears on your premium notice.
Two practical points follow. First, confirm which service center administers your specific policy before requesting anything — call the number on your most recent premium notice, and as of 2026 verify the process directly rather than assuming. Second, and more importantly for many callers: Washington National’s product mix is dominated by supplemental health coverage, including cancer and critical illness plans sold to middle-income and worksite customers. If your certificate pays benefits for a diagnosis or hospital stay rather than a death benefit, it is not life insurance and cannot be sold in a settlement. Read the cover page before going further.
A.M. Best has rated Washington National in the “A-” (Excellent) range in recent years; confirm the current 2026 rating with A.M. Best or the carrier.
The Arithmetic That Turns Old UL Into a Settlement Candidate
Three forces work against a universal life policy as the insured ages.
Credited interest fell. A policy illustrated at 9% and crediting near its 3% or 4% guaranteed floor accumulates dramatically less account value than the original projection showed. Decades of that shortfall compound.
Cost of insurance rises. The monthly deduction is priced on the insured’s attained age and on the net amount at risk — the gap between the death benefit and the account value. As the account value falls behind, that gap widens, so the charge rises for two reasons at once.
The premium never changed. Most owners kept paying the same amount they were quoted at issue, because nobody told them to pay more.
Put together, the policy runs on a slowly draining account until the drain empties. The lapse notice is the first moment many owners learn any of this. At that point the choices are: pay far more, surrender for whatever small account value remains, lapse for nothing, or sell the contract.
Ask for the In-Force Illustration in Three Versions
An in-force illustration is the projection of your policy going forward, and it is the single most useful thing you can request. Do not accept just one version. Ask for:
- Current assumptions at your current premium — shows the lapse year if nothing changes.
- Guaranteed assumptions at your current premium — shows the worst outcome the contract permits, using the guaranteed minimum credited rate and maximum allowable charges.
- Premium required to carry the policy to age 100, at both current and guaranteed assumptions.
The gap between the first two numbers is the risk you are carrying. The third number is the real annual cost of ownership, as opposed to the number on your bill. Many people make their decision the moment they see it. Our explainer on what an in-force illustration is goes through the columns.
| Premium Figure | What It Really Is | Can It Sustain the Policy? |
|---|---|---|
| Minimum premium | The least the contract accepts short-term | No — short-run only |
| Target premium | A commission benchmark from the original sale | No contractual guarantee |
| Planned premium | What you elected based on the issue illustration | Only if the original assumptions held, which they usually did not |
| Required premium to age 100, current assumptions | What it costs now under today’s rates and charges | Yes, if rates and charges do not worsen |
| Required premium to age 100, guaranteed | Cost under the worst terms the contract allows | Yes, and it is the ceiling on your exposure |
Target Premium, Minimum Premium, and What You Actually Pay
Universal life contracts throw around several premium figures and they mean different things:
Minimum premium keeps the policy in force only in the very short run — it is not a funding plan. Target premium is largely a commission benchmark from the original sale and has no contractual power to sustain the policy. Planned premium is what you elected to pay, which was based on an illustration that may not have held up. Required premium is what it actually takes now to carry the policy to a given age.
Only that last figure is decision-grade information, and it is the one nobody sends you unprompted. Request it explicitly. If the required premium to age 100 is several times your planned premium, you are holding a policy that is, in practical terms, already in trouble — and that is precisely the profile the settlement market was built around.
What Raises and Lowers an Offer
Buyers weigh four things. Death benefit: the eventual payout, with $100,000 as the practical minimum since transaction costs do not shrink with policy size. Life expectancy: estimated by independent medical underwriters from records; shorter estimates raise offers, which is uncomfortable but is how the math functions. Carrying cost: the premium needed to keep the policy alive, deducted from what a buyer can pay. Account and surrender value: sets the floor an offer must exceed.
Things that lower an offer: an outstanding loan, which is deducted at closing; a policy that requires very heavy funding; and a death benefit near or below the practical floor. Things that raise it: a large face amount, low required premium, and documented health impairments.
Federal GAO market data (GAO-10-775) put typical proceeds at roughly 10% to 35% of face value, on the order of four to eight times cash surrender value. Broad market ranges, not a quote. See how much you might receive.
Documents to Gather
Start with the policy cover page: insurer, policy number, face amount, issue date. That single page is enough for a free review to tell you whether it is worth going further.
Beyond that, the working file typically holds the most recent annual statement showing account value, surrender value, and any loan; the in-force illustrations described above; and a HIPAA authorization allowing life-expectancy underwriters to order medical records. Read any authorization carefully — it should specify who receives records and be revocable.
One thing to do today regardless of whether you sell: find out your loan balance if you have one. Loan interest on an old universal life policy compounds quietly and can consume the account value entirely, which lapses the policy and can produce a taxable event. That is worth knowing about early. Consult your own tax advisor on that point; this page does not give tax advice.
Process, Timing, and Getting Started
Realistic timing is 60 to 120 days from first review to funded payment. The two slow steps are the carrier producing the in-force illustration and physicians’ offices releasing records. Neither can be rushed much, so start early if a lapse date is approaching.
Keep paying premiums throughout. A policy that lapses mid-process is no longer sellable, and reinstatement is not always available. Once an offer arrives, get it in writing and ask what the figure is net of every commission and fee — if a broker sits in the chain, ask for gross and net side by side.
At closing, funds should be held by an independent escrow agent and released only after the insurer confirms the ownership change on its books. Most states then provide a rescission period during which the sale can be unwound. To start, send the policy cover page for a free, no-obligation review or call (305) 209-7183. Related: settlement versus surrender, what policies qualify, and our guide to Washington National whole life.
Frequently Asked Questions
Do I need Washington National’s approval to sell my universal life policy?
No. The policy is personal property you own, and the owner’s right to transfer it was affirmed by the Supreme Court in Grigsby v. Russell in 1911. The buyer purchases the contract from you and the carrier records the ownership and beneficiary change after closing.
Why is my universal life policy suddenly demanding a much larger premium?
Because credited interest fell far below what 1980s and 1990s illustrations assumed, while the internal cost of insurance rose with the insured’s age. The account value never accumulated as projected, so it can no longer absorb the monthly charges. The shortfall usually surfaces as a lapse notice in the insured’s 70s or 80s.
How do I request an in-force illustration?
Call the service number on your most recent premium notice and ask for in-force illustrations at both current and guaranteed assumptions, plus the premium required to carry the policy to age 100 under each. Ask for it in writing. As of 2026, confirm the request process directly with the carrier, since service centers differ by legacy block.
My Washington National certificate might be a cancer or critical illness plan. Can I sell it?
No. Supplemental health products pay benefits during your lifetime for a diagnosis, hospital stay, or accident, and they cannot be sold in a life settlement. Washington National sells a great deal of supplemental health coverage, so this confusion is common. Check whether your cover page states a death benefit.
How much could a universal life settlement pay?
The federal GAO study (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly four to eight times cash surrender value. Your outcome depends on the death benefit, the insured’s age and health, and how much premium it takes to keep the policy in force.
Should I stop paying premiums while a sale is being arranged?
No. A lapsed policy generally cannot be sold, and reinstatement is not always available. Keep the policy in force until closing; premium responsibility shifts to the buyer only after the ownership change is complete and funds are released.
What does a policy loan do to my proceeds?
The loan balance plus accrued interest is deducted from what you receive, because the buyer takes the policy subject to the loan. On older universal life contracts, compounding loan interest can also erode the account value enough to lapse the policy, which may create tax consequences. Speak with your own tax advisor.
Is Pine Lake affiliated with Washington National?
No. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Washington National Insurance Company or CNO Financial Group. This page is educational and is not legal, tax, or investment advice. For a free review, send the policy cover page or call (305) 209-7183.
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Related Reading
- What Is An In Force Illustration
- How Much Can I Get For My Life Insurance Policy
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Sell My Washington National Whole Life Policy
- Sell My Washington National Guaranteed 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.