Yes — a William Penn survivorship (second-to-die) policy can be sold in a life settlement when the owner and the contract qualify, and the insurer’s permission is not part of the transaction. A life insurance policy is property that its owner may transfer; the carrier records the new owner and beneficiary after the sale closes and has no veto over whether it happens. The real question is whether an institutional buyer will price the joint-life risk in your contract at a number that beats your alternatives.
A William Penn contract carries one distinguishing feature that shapes the entire process: it is a New York policy. William Penn Life Insurance Company of New York exists precisely because New York regulates insurance separately and more prescriptively than other states, and that extends to the life settlement market. New York licenses settlement providers and brokers under its own statute, imposes its own disclosure requirements, and sets its own rescission rules. If you live in New York and hold a New York-issued policy, those rules govern your transaction.
This is general education, not legal, tax, or investment advice, and Pine Lake Life Solutions is not affiliated with or endorsed by William Penn Life Insurance Company of New York, Banner Life, or Legal & General America. Pine Lake makes no representation about being licensed in any particular state. For a free, no-obligation policy review, send the cover page or call (305) 209-7183.
In This Article
- Why a Separate New York Company Exists
- New York’s Rules Apply to the Sale, Not Just the Policy
- Two Insureds, One Benefit, and a Lower Number
- Term Coverage Is a Different Question
- When the Coverage No Longer Has a Job
- After the First Death, Re-Run the Numbers
- Trust Ownership, Trustees, and Crummey Records
- Contestability, Timing, and the Honest Alternatives
- Frequently Asked Questions
Why a Separate New York Company Exists
William Penn Life Insurance Company of New York is the New York-chartered member of the Legal & General America group, whose other company, Banner Life Insurance Company, writes business in the rest of the country. National carriers commonly maintain a distinct New York subsidiary because New York requires separate product filings, applies its own reserve and nonforfeiture standards, and enforces regulations — including the state’s insurance regulation on suitability and best-interest standards for life insurance sales — that differ from the model rules other states follow.
Ownership of the group has shifted: Legal & General agreed to sell its US protection business, and control of Legal & General America has since changed. That does not alter your contract, but it does affect who answers the phone. As of 2026, confirm the current owner, the servicing address, and the correct forms with the company directly. Read the issuing company name from the policy cover page rather than from the agent’s business card — if the cover page says Banner Life rather than William Penn, follow the Banner Life survivorship guidance instead.
New York’s Rules Apply to the Sale, Not Just the Policy
New York regulates life settlements under its own article of the insurance law rather than adopting another state’s model act wholesale. Practically, that means a settlement provider and any broker involved in your transaction should hold the appropriate New York licenses, the disclosures you receive are prescribed by New York, and the period during which you may rescind after receiving payment is set by New York law rather than by industry custom.
Verify licensure yourself before signing anything. The New York Department of Financial Services maintains public licensee information, and checking it takes minutes. Do not accept a verbal assurance. See how to verify a provider’s license, New York insurance department consumer help, and life settlement licensing in New York. Our page on the rescission period explains why the unwind window matters and why you should know its exact length before closing.
If you moved out of New York after buying the policy, which state’s rules apply can become genuinely complicated. See what happens when you move states and raise the question with your own attorney rather than with a buyer.
Two Insureds, One Benefit, and a Lower Number
A survivorship policy insures two people and pays a single death benefit after the second of them dies. Nothing is paid on the first death, and that structure drives every part of the valuation.
A buyer must estimate how long it will fund premiums before collecting, then discount the death benefit to present value. That requires life expectancy reports on both insureds and a joint-mortality model, because the payout waits on whichever insured lives longer. The healthier or younger life therefore sets the pricing. Each extra projected year adds premium the buyer must pay and another year of discounting.
Consequently, second-to-die offers run below single-life offers on the same face amount, and fewer buyers bid, because not every provider underwrites joint-life risk. Market-wide benchmarks — roughly 10% to 35% of face value, and average proceeds of about four to eight times cash surrender value in the GAO’s market study (GAO-10-775) — bound the market as a whole; survivorship cases sit near the bottom of it, and some draw nothing. See life expectancy underwriting.
Term Coverage Is a Different Question
Legal & General America built its market position on competitively priced level term insurance, and much of the in-force New York business is term rather than permanent. Before applying anything on this page, confirm your contract is a permanent second-to-die policy: two named insureds, benefit payable at the second death, and either cash value or a secondary no-lapse guarantee.
Term coverage can occasionally be settled, but usually only where a conversion privilege remains exercisable, since the buyer would convert the policy to permanent coverage as part of the transaction. Conversion rights expire at a specified age or policy year, and once they lapse the policy is generally unsellable. See selling a term policy and an expiring conversion rider.
| Step | What to Verify | Where |
|---|---|---|
| Identify the issuer | William Penn (NY) or Banner Life | Policy cover page |
| Confirm the product | Permanent second-to-die, not term | Cover page and specifications pages |
| Check licensure | Provider and broker licensed in New York | New York Department of Financial Services records |
| Know the rescission window | Length set by New York law | Closing documents and state statute |
| Confirm premium requirement | Premium sustaining coverage or guarantee | Current in-force illustration |
| Establish authority to sell | Owner or trustee, with documentation | Cover page owner line; trust instrument |
When the Coverage No Longer Has a Job
- Estate-tax exposure fell away. Second-to-die coverage was sold to fund a tax bill at the second death. Federal exemption levels have risen substantially, and New York’s own estate tax has its own threshold and its own quirks — confirm both with a tax professional for the applicable year.
- The ILIT serves no remaining purpose. A trust holding only this policy, for an estate that is no longer taxable, is an administrative cost.
- One insured has died. The contract continues but must be re-analyzed from scratch.
- A business arrangement was unwound. Buy-sell and succession funding outlives its purpose regularly.
- The premium no longer fits the household. See paying premiums on a fixed income.
After the First Death, Re-Run the Numbers
When one insured dies, the policy converts economically into a single-life contract on the survivor. Only one death now separates the owner from the claim, the joint-mortality drag disappears, and value frequently improves enough to change the answer entirely.
Do it in order: notify the carrier of the death as the contract requires, then request a new in-force illustration reflecting a single remaining insured. On a guaranteed universal chassis in particular, the premium needed to sustain a no-lapse guarantee can change after the first death, and negotiating from a stale illustration means negotiating from the wrong number. See survivorship policies after the first death and what a no-lapse guarantee is.
Trust Ownership, Trustees, and Crummey Records
Most survivorship policies sit in an irrevocable life insurance trust, which means the trustee — not the insureds — is the seller, acting under fiduciary duty to the beneficiaries. Buyers will require the complete trust instrument with amendments, evidence of who is currently serving as trustee including successor appointments, and confirmation the trust authorizes disposing of trust property. Some instruments require written beneficiary consent or notice; some name a trust protector.
Expect the Crummey question too. ILITs funded by annual exclusion gifts rely on written withdrawal notices to beneficiaries, and after decades those notices are frequently missing. Gaps rarely block a sale but they slow diligence and raise gift-tax issues your own attorney should address. See selling an ILIT-owned policy and missing Crummey notices.
Contestability, Timing, and the Honest Alternatives
Life policies carry a two-year contestability period from issue, during which the insurer may investigate and rescind for material misstatement in the application. Buyers will not accept that exposure, so a newly issued policy has to season; the clock runs from issue for both insureds. Realistic timing for a completed transaction is roughly 60 to 120 days, with two sets of medical records the usual bottleneck, and funds should be held by an independent escrow agent until the ownership change is recorded.
Rank your options honestly before starting. Keep the policy if the death benefit still funds a real obligation and the premium is sustainable. Reduce the face amount if the premium alone is the problem. Surrender if the contract has cash value and no buyer interest — that value is the floor any offer must beat. Sell only when a written offer clears that floor by a margin that justifies months of underwriting. And never simply stop paying on a no-lapse guarantee contract while you consider your options; the guarantee can be permanently damaged. See when keeping the policy is right and alternatives to stopping premiums. Send the cover page for a free review or call (305) 209-7183.
Frequently Asked Questions
Does William Penn have to approve the sale?
No. The policy is transferable property and the owner may sell it without the insurer’s consent. The company records the change of owner and beneficiary once the transaction closes. Pine Lake is not affiliated with William Penn Life Insurance Company of New York or Legal & General America.
How is a New York policy different?
New York regulates life settlements under its own insurance law rather than adopting a model act, with its own licensing, disclosure, and rescission requirements. Providers and brokers involved in a New York transaction should hold the appropriate New York licenses. Verify licensure through the New York Department of Financial Services before signing anything.
Why is William Penn separate from Banner Life?
New York requires separate product filings and applies its own regulatory standards, so many national carriers maintain a distinct New York-chartered subsidiary. William Penn writes the New York business for the Legal & General America group while Banner Life writes elsewhere. Your cover page shows which company issued your contract.
Why do second-to-die policies get smaller offers?
Because nothing is paid until both insureds have died. Buyers must underwrite two life expectancies and price joint mortality, with the payout following whichever insured lives longer. That lengthens the expected holding period and premium outlay, lowering present value and thinning the pool of bidding buyers.
One insured has died. What should we do first?
Notify the carrier of the death as the contract requires, then request a new in-force illustration reflecting a single remaining insured. The policy now prices like single-life coverage on the survivor, which usually improves value, but the premium needed to maintain any guarantee can also change.
We moved out of New York. Which state’s rules apply?
It depends on where you reside at the time of the transaction and on the terms of the policy, and the answer is not always obvious. Raise it with your own attorney rather than with a buyer, since the applicable disclosures, licensing, and rescission rights can differ meaningfully by state.
Our policy is term, not permanent. Does that matter?
A great deal. Term coverage generally can only be settled if a conversion privilege remains exercisable, because a buyer would convert it to permanent insurance as part of the transaction. Conversion rights expire at a stated age or policy year, so identify that deadline immediately.
What is the first step?
Send the policy cover page for a free, no-obligation review. It shows the issuing company, policy number, face amount, issue date, owner, and both insureds. Keep paying premiums while the review is underway, particularly on a no-lapse guarantee contract. Call (305) 209-7183 with questions.
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Related Reading
- Can I Sell A Survivorship Life Policy
- Sell My Banner Life Survivorship Policy
- Life Settlement Licensing New York
- New York Insurance Department Consumer Help
- Verify Provider License State
- Life Settlement Rescission Period Explained
- Survivorship Policy First Death
- Sell Ilit Trust Owned Policy
- Crummey Notices Missing
- What Is A No Lapse Guarantee
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.