Yes — you can sell a Washington National whole life policy in a life settlement if you and the policy qualify. The buyer purchases the contract from you, and the carrier’s permission is not part of the transaction. That has been settled since the Supreme Court’s 1911 decision in Grigsby v. Russell, which recognized a life insurance policy as transferable property like any other asset the owner holds.
Whole life is the policy type where the numbers are most knowable in advance. Guaranteed cash value grows on a contractual schedule. If the policy is participating, dividends may add paid-up additions on top. That means before you talk to anyone, you can open your annual statement and find the exact number any settlement offer has to beat — the cash surrender value.
This guide walks through reading that statement line by line, what paid-up additions and outstanding loans do to your net proceeds, and one thing specific to Washington National customers that trips people up before they even start. 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
- First: Make Sure You Are Holding Life Insurance
- The Company Behind the Policy
- Reading the Cash Surrender Value Column
- Paid-Up Additions, Dividends, and the Offer
- Outstanding Loans Come Off the Top
- Alternatives to Weigh Before Selling
- Documents, Process, and Realistic Timing
- Frequently Asked Questions
First: Make Sure You Are Holding Life Insurance
This sounds obvious and it is not. Washington National’s business is weighted heavily toward supplemental health insurance — cancer policies, critical illness, accident, and hospital indemnity coverage sold to middle-income and worksite customers. Those products pay benefits when something happens to you while you are alive. They are not life insurance and they cannot be sold in a life settlement.
A meaningful share of people who call about “selling my Washington National policy” are holding a supplemental health certificate. The confusion is understandable: both arrive as certificates, both come with premium notices, and both were often sold at the same kitchen table or worksite enrollment meeting.
Check the cover page. Life insurance will state a death benefit or face amount payable on the death of the insured. A supplemental health product will describe benefits for a diagnosis, a hospital stay, or an accident. If it is the latter, a settlement is not available, and no reputable party will tell you otherwise.
The Company Behind the Policy
Washington National Insurance Company traces its history to 1911 and today operates as a subsidiary of CNO Financial Group, headquartered in Carmel, Indiana. CNO was known as Conseco until it renamed itself in 2010, and Washington National came into that family through Conseco’s acquisition in the late 1990s. Along the way it has serviced legacy blocks from predecessor and affiliated companies, so it is not unusual for an older policy to have been issued under a name that no longer appears on your statement.
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 before relying on it, and confirm with the service center which legacy block administers your specific contract.
None of this affects your ability to sell. Carrier identity and financial strength matter to a buyer as a measure of how reliably the death benefit will be paid decades from now — not as an approval you need.
Reading the Cash Surrender Value Column
Pull your most recent annual statement and find these lines:
- Face amount / death benefit. What the policy pays at death. The starting point for everything.
- Guaranteed cash value. The contractual schedule, knowable years in advance.
- Cash surrender value. What the carrier would actually pay you today if you surrendered — cash value less any surrender charge and less any outstanding loan.
- Dividends and paid-up additions. If the policy is participating, accumulated additions that increase both cash value and death benefit.
- Loan balance and accrued interest. Money already taken out against the policy.
The cash surrender value is the number to write down. It is the floor. Surrendering pays you exactly that and nothing more, and a settlement is only worth considering if it pays meaningfully more. Our explainer on cash surrender value covers why the account value and the surrender value are often different figures.
| Statement Line | What It Means | Why It Matters to a Sale |
|---|---|---|
| Face amount / death benefit | Payout at the insured’s death | The asset a buyer is acquiring; $100,000+ is the practical floor |
| Guaranteed cash value | Contractual accumulation schedule | Predictable, and independent of interest rates |
| Cash surrender value | What the carrier pays you to surrender today | The number any settlement offer must beat |
| Paid-up additions | Dividends used to buy extra paid-up coverage | Raises death benefit and cash value together |
| Loan balance plus interest | Amount borrowed against the policy | Deducted from your proceeds at closing |
| Annual premium due | Ongoing cost to keep coverage in force | The buyer’s carrying cost, which reduces the offer |
Paid-Up Additions, Dividends, and the Offer
Participating whole life policies may pay dividends, which owners typically direct in one of a few ways: taken in cash, applied to reduce premium, left to accumulate at interest, or used to purchase paid-up additions. That last option is common on older policies and it matters here, because paid-up additions raise both the death benefit and the cash value over time.
For a settlement, that cuts two ways. A larger death benefit is straightforwardly good — it is what the buyer eventually collects. But a larger cash value raises the floor an offer has to clear, and a whole life policy with very rich cash value relative to its death benefit leaves less room between what you could get by surrendering and what a buyer can rationally pay.
The policies that tend to price best are those with a substantial death benefit, manageable ongoing premiums, and moderate rather than maximal cash value. Whether yours fits that shape is a question of arithmetic on your specific contract, which is what a free review is for.
Outstanding Loans Come Off the Top
If you have borrowed against the policy, the loan balance plus accrued interest is deducted from what you receive at closing. The buyer takes the policy subject to the loan, so the loan is effectively repaid out of the purchase price.
This is where deals quietly fall apart. A $150,000 whole life policy with an $80,000 loan against it is a very different asset than the face amount suggests, and unpaid loan interest compounds year over year on older policies. Find the current balance on your statement before you begin, not after an offer arrives.
Loans also interact with the surrender comparison: the cash surrender value shown on your statement may already be net of the loan, or it may not be. Ask the carrier which convention your statement uses so you are comparing the right numbers.
Alternatives to Weigh Before Selling
Whole life gives you more non-sale options than any other policy type, and they should all be on the table:
- Reduced paid-up insurance. Stop paying premiums and keep a smaller, fully paid death benefit. If your goal is simply ending the premium, this may be the answer with no sale needed.
- Extended term. Use the cash value to keep the full death benefit in force for a defined period.
- Policy loan. Access cash while keeping the policy, at the cost of interest and a reduced death benefit.
- Surrender. Simple and fast, but usually the lowest-value exit.
- Life settlement. A lump sum for the contract itself, typically well above surrender value for policies that qualify.
Published GAO market data (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly four to eight times cash surrender value. A settlement tends to win when the coverage is no longer needed and the premium has become a burden; it loses when heirs still depend on the death benefit. See settlement versus surrender and how the policy options work.
Documents, Process, and Realistic Timing
To find out if the policy is a candidate, send one page: the policy cover page showing the insurer, policy number, face amount, and issue date. That is the whole ask for a free review.
If it moves forward, the file adds your most recent annual statement, an in-force illustration from the service center, and a HIPAA authorization so independent underwriters can estimate life expectancy from medical records. Read anything you sign; a medical authorization should name who receives records and be revocable.
Expect roughly 60 to 120 days from review to funded payment. Get any offer in writing and ask for the number net of all commissions and fees. At closing, funds should be held by an independent escrow agent and released only after the insurer confirms the ownership change — never transfer ownership against a promise of later payment. Most states then provide a rescission window. To begin, call (305) 209-7183 or send the cover page. If you hold other Washington National coverage, see our guides to universal life and term life.
Frequently Asked Questions
Does Washington National have to approve the sale of my whole life policy?
No. A life insurance policy is your personal property, and the 1911 Supreme Court decision in Grigsby v. Russell confirmed the owner’s right to transfer it. The buyer purchases the contract from you. The carrier’s role is administrative — recording the new owner and beneficiary after closing.
My Washington National policy might be a cancer or critical illness plan. Can that be sold?
No. Supplemental health products pay benefits for a diagnosis, hospital stay, or accident while you are living, and they cannot be sold in a life settlement. Check your cover page: life insurance states a death benefit payable at the insured’s death. Washington National sells a large amount of supplemental health coverage, so this mix-up is common.
Where do I find my cash surrender value?
On your most recent annual statement, usually near the cash value figures. Note that cash value and cash surrender value can differ, because surrender charges and outstanding loans reduce what you would actually be paid. Ask the carrier whether the figure shown is already net of any loan.
Does high cash value make my policy worth more to a buyer?
Not necessarily. High cash value raises the surrender floor an offer must beat, and it can compress a buyer’s economics. Policies with a large death benefit, manageable premiums, and moderate cash value often price best. Only a review of your actual contract can tell you where yours lands.
What happens to my policy loan when I sell?
The loan balance and accrued interest are deducted from what you receive at closing, since the buyer takes the policy subject to the loan. On older policies compounding interest can make the balance much larger than expected. Get the current figure from your statement before starting.
How much might a whole life settlement pay?
Federal GAO market data (GAO-10-775) found sellers typically received about 10% to 35% of face value, roughly four to eight times cash surrender value. Your result depends on the death benefit, the insured’s age and health, the premium, and the cash value. Those are market ranges, not a quote.
Should I consider reduced paid-up insurance instead?
It is worth pricing. Reduced paid-up lets you stop paying premiums and keep a smaller, fully paid death benefit, which can be the right answer if your goal is simply to end the premium burden while keeping some coverage. Ask the carrier for a reduced paid-up quote alongside your surrender value.
Is Pine Lake connected to 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. We provide education and a free policy review. Send the policy cover page or call (305) 209-7183; nothing here is legal, tax, or investment advice.
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Related Reading
- Cash Surrender Value Life Insurance
- Life Settlement Vs Surrender
- How It Works Policy Options
- Is A Life Settlement Worth It
- Sell My Washington National Universal Life Policy
- Sell My Washington National Term 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.