Yes. A Western & Southern universal life policy can be sold in a life settlement, because the contract belongs to you and a buyer acquires it from you; the insurer does not have to consent to the sale. Once the transaction closes, the carrier records the new owner and beneficiary and continues administering the contract as usual.
Universal life is the type the secondary market buys most often, and the reason is built into the product. Unlike whole life, universal life is unbundled: your premiums flow into an account value, the insurer credits interest, and every month it deducts a cost-of-insurance charge based on your attained age plus expense and rider charges. That insurance charge rises every year. Policies illustrated at the high interest rates of the 1980s and 1990s watched credited rates fall for decades while the internal charges climbed on schedule, and many now require far more premium than anyone planned.
Western & Southern Financial Group is a Cincinnati-based mutual holding company organization made up of affiliated insurance companies, so the name on your contract may be a member company rather than the group brand. Confirm the issuing and servicing entity on your latest statement and verify current details directly (as of 2026). Pine Lake Life Solutions is not affiliated with Western & Southern or its member companies.
In This Article
Cost of Insurance: The Charge That Never Stops Climbing
Open your annual statement and find the monthly deductions. The largest line is almost always the cost of insurance, calculated on the net amount at risk, which is the death benefit less the account value, multiplied by a rate tied to your attained age.
Two things follow. First, the rate rises every year, slowly in your fifties and steeply in your late seventies and eighties. Second, as the account value shrinks, the net amount at risk grows, so the charge accelerates on both variables at once. That compounding is why universal life policies rarely fail gradually. They look manageable for years and then deteriorate quickly.
Carriers may also raise cost-of-insurance rates within contractual guaranteed maximums, which some blocks of business have experienced. Check your contract for the guaranteed maximum table and ask the servicing company whether current rates differ from those originally charged. Verify the answer in writing rather than relying on an agent’s recollection.
Request the In-Force Illustration First
The in-force illustration is the document that turns a vague worry into a number. It is a projection run on your actual contract as it stands today, and it answers the question that determines everything: what will it cost to keep this policy alive?
Ask the servicing company for several versions. At current charges and current credited rates. At guaranteed maximum charges and guaranteed minimum interest, which is the worst outcome the contract permits. Showing the premium required to carry the policy to age 95 or 100. And showing what happens if you pay nothing more starting now.
Owners regularly discover their policy lapses within a few years at the premium they are currently paying. That is not a reason to panic, but it is a reason to decide deliberately instead of drifting. Request the illustration early; it is the most common source of delay in a settlement, and there is no substitute for it.
Identify the Right Servicing Company
Western & Southern is a family of affiliated insurers under a mutual holding company structure, and over the years additional companies have joined that family. As a result, the entity printed on the front of your policy may not be the name you think of as your insurer, and your servicing center may sit under a different brand.
None of that affects your right to sell. It affects where the paperwork goes. Compare the issued-by line on the contract with the name on your most recent premium notice and annual statement, then call the number printed there and confirm three things: which company services the contract, the correct department and address for a change of ownership, and the current form requirements including any notarization or signature guarantee. Verify these directly rather than assuming, because procedures change.
| Statement Line | What to Look For | Effect on a Settlement |
|---|---|---|
| Death benefit | Current amount, including any increases | The primary driver of value |
| Account value | How much cushion is left | Determines how soon the policy fails |
| Cash surrender value | What the carrier would pay today | The floor an offer must beat |
| Monthly cost of insurance | Trend over the last few years | Sets the buyer’s funding cost |
| Loan balance | Principal plus accrued interest | Subtracted from proceeds |
What Determines the Size of an Offer
A buyer purchases the death benefit and takes on the obligation to fund the policy until it pays. Three inputs drive the number: the death benefit, the projected premium stream from the in-force illustration, and a life expectancy estimate built from medical records.
Aged universal life often prices well relative to its alternatives because the surrender floor is so low. Federal research on the market (GAO-10-775) found sellers typically received roughly 10 to 35 percent of face value, on the order of four to eight times cash surrender value, and many older universal life contracts have very little surrender value left at all.
Offers weaken when the death benefit is small, when a policy loan has drained the contract, or when the projected funding cost consumes too much of the benefit. Read settlement versus surrender for the comparison and how cash surrender value works for what the carrier would actually pay you.
Alternatives Worth Pricing Before You Sell
Reducing the face amount lowers the net amount at risk and therefore the monthly cost of insurance, sometimes enough to make the policy sustainable on a premium you can afford. Ask the servicing company to illustrate a reduced face amount before assuming the policy has to go.
You can also let the accumulated account value carry the policy for a while without further premium, though on an aged contract that runway is usually short. Surrender is available and fast but generally the lowest payout. And a partial sale with a retained death benefit ends premiums while preserving part of the coverage for your family, described in how the policy options work.
The one thing to avoid is silence. Letting a policy lapse without checking whether it has market value destroys an asset for no reason. A review takes days and costs nothing.
Who Qualifies
The typical candidate: insured around 65 or older, or younger with meaningful health changes since issue; death benefit of $100,000 or more; contract in force beyond its contestability period; premiums substantial relative to the benefit.
Health is the input most owners underestimate. Your policy was underwritten on the person you were at issue. A settlement is priced on the person you are now, and changes in health since then can significantly increase what a buyer will pay. That is why a contract that has felt like a losing proposition for a decade can turn out to be a meaningful asset for funding care.
Our page on what policies qualify lays out the full screen. If you hold other Western & Southern contracts, see selling a Western & Southern guaranteed universal life policy or a Western & Southern whole life policy.
The Process, Start to Finish
Step one, free review: send the policy cover page showing the insurer, policy number, face amount and issue date. Step two, documentation: in-force illustration, recent statements, and a HIPAA authorization so medical records can support a life expectancy estimate. Step three, offers, in writing, showing gross and net after every commission. Step four, contracts and independent escrow. Step five, the ownership change and funding, followed by your state’s rescission window.
Total elapsed time is typically 60 to 120 days. Read any HIPAA release before signing; it should name who receives records and be revocable. Never transfer ownership against a promise of payment afterward.
To get started, send the cover page for a free policy review or call (305) 209-7183. This page is education, not legal, tax or investment advice.
Frequently Asked Questions
Why does my universal life policy keep asking for more premium?
Universal life deducts a monthly cost-of-insurance charge that rises with your attained age and grows as the account value shrinks. When credited interest cannot keep pace, the account value erodes and the carrier requests more premium to prevent a lapse. An in-force illustration shows precisely how steep that curve is on your contract.
Does Western & Southern need to approve the sale?
No. A buyer purchases the contract from you and carrier consent is not part of the decision. The insurer records the change of ownership and beneficiary once the forms are filed and accepted, and that written acknowledgment normally releases your funds from escrow.
The company on my policy is not Western & Southern. Is my policy still valid?
Yes. Western & Southern Financial Group is a Cincinnati-based mutual holding company organization made up of affiliated insurers, and policies were issued by member companies under their own brands. Your rights are unchanged. Use the servicing company and number on your latest statement for document requests and ownership changes.
Can the carrier raise my cost-of-insurance rates?
Universal life contracts typically state a guaranteed maximum cost-of-insurance table, and current rates can be adjusted within those limits. Some blocks of business across the industry have seen increases. Check your contract for the guaranteed maximums and ask the servicing company in writing whether current rates differ from those originally charged.
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. Aged universal life often has almost no surrender value left, which is why the difference can be striking. Your offer depends on the death benefit, projected premiums and a life expectancy estimate.
Would reducing my face amount fix the problem instead?
Sometimes. A lower death benefit means a smaller net amount at risk and a smaller monthly insurance charge, which can make the policy affordable again. Ask the servicing company to illustrate a reduced face amount before concluding the policy has to be sold or surrendered.
What if I simply stop paying?
On an older universal life contract the remaining account value usually carries the policy only briefly before it lapses, and a lapsed policy is worth nothing to anyone. If you are thinking about walking away, get a free review first. It costs nothing and takes days.
What is the first document to request?
An in-force illustration from the servicing company, ideally in several versions: current charges, guaranteed maximum charges, and the premium required to carry the policy to age 95 or 100. To simply start a free review, the policy cover page alone is enough.
Find out what your policy is worth — free, confidential, no obligation.
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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 Western Southern Whole Life Policy
- Sell My Western Southern 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.