Yes, a WoodmenLife guaranteed universal life certificate can be sold in a life settlement if you and the certificate qualify, and with GUL a settlement is frequently the only exit that returns meaningful money. You own the contract, the buyer purchases it from you, and the society’s permission is not part of the transaction. The catch specific to guaranteed universal life is that surrendering it typically pays close to nothing, because the product was built to deliver a guarantee rather than an account balance.
Think of GUL as insurance engineered for certainty. Pay the scheduled premium and the death benefit is guaranteed not to lapse for a stated period, often to age 90, 100, 105, or 121 depending on the design. Miss the schedule and that certainty can evaporate, which is the single most important thing to understand before you do anything else.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of WoodmenLife. This page is education, not legal, tax, or investment advice. Send the certificate cover page for a free policy review, or call (305) 209-7183.
In This Article
One Late Payment Can Cost You the Guarantee
In most guaranteed universal life contracts, the no-lapse guarantee is conditional on premiums arriving on time and in full. A short payment, a late payment, or a skipped year can permanently reduce the guarantee period or void it entirely, even though the certificate itself stays active and statements keep arriving as if nothing happened.
Some contracts include a catch-up provision that lets you restore the guarantee by paying the shortfall plus interest within a defined window. Others do not. The only way to know is to ask.
So if there has ever been a payment hiccup, ask WoodmenLife two questions in writing: is the no-lapse guarantee currently intact, and is any catch-up or reinstatement of the guarantee still available? A guarantee that can still be repaired is worth far more than one that quietly expired three years ago.
Why Surrender Is Not a Real Option Here
Whole life builds guaranteed cash value on a printed schedule. Older universal life builds an account value you can access. Guaranteed universal life does neither in any meaningful amount. The premium buys the promise, not a savings balance, and many GUL contracts show a cash surrender value at or near zero for their entire life.
That reframes the usual decision. For most policy types the question is how much more than surrender value a settlement would pay. For GUL, the question is whether you receive something rather than nothing. If you walk away from a GUL certificate, you generally walk away with nothing at all, no matter how many years of premium you paid. Our page on cash surrender value explains why the products behave so differently.
Buyers Price the Guarantee, Not the Account
Because there is no account value to speak of, a buyer evaluating a GUL certificate looks at three things: how long the guarantee runs, what premium sustains it, and whether the guarantee is fully intact.
Those inputs are unusually clean. With interest-sensitive universal life, a buyer has to make assumptions about future crediting rates and charges. With GUL, the premium is contractual and level, and the guarantee period is stated. Less uncertainty tends to mean a more confident bid, which is one reason GUL is well regarded in the secondary market.
General market research, including the GAO’s study (GAO-10-775), found sellers typically receiving about 10% to 35% of face value. Buyers usually want a death benefit of $100,000 or more and an insured in the senior years or with a meaningful health condition.
| Premium History | Likely Effect on the No-Lapse Guarantee | What to Ask the Society |
|---|---|---|
| Every premium paid in full and on time | Guarantee intact for the stated period | Confirm the guarantee end age in writing |
| One payment made late within the grace period | Often survivable, sometimes not | Ask whether the guarantee was recalculated |
| Payment short of the required amount | Guarantee period can be shortened | Ask for a catch-up quote with interest |
| A year skipped entirely | Guarantee may be permanently voided | Ask if any restoration option remains |
| Certificate lapsed and reinstated | Guarantee may not have been restored with coverage | Request written guarantee status post-reinstatement |
The Fraternal Certificate Angle
WoodmenLife is a fraternal benefit society, founded in Omaha in 1890 as Woodmen of the World and rebranded in 2015. Members hold certificates rather than ordinary policies, the society has no shareholders, and local chapters are part of membership.
For a settlement, this raises one specific question: whether your certificate permits an absolute assignment to a non-member institutional owner. Some fraternal contracts contain membership-linked language that ordinary policies do not. Ask WoodmenLife in writing about your certificate series and get confirmation as of 2026. Handle this before spending time on offers, because it is the one issue that could stop a transaction that otherwise makes sense.
Exactly What to Request from the Society
Three documents make a GUL review straightforward:
- The certificate cover page, showing owner, insured, face amount, and issue date.
- An in-force illustration showing the guarantee, including the guarantee period at the current premium and the premium required to extend it to the contract’s maximum age.
- A written statement of guarantee status, confirming whether any past payment issue has impaired it.
That third item is easy to skip and important to have. A routine illustration can show the certificate in force without making the state of the guarantee obvious. See how to read an in-force illustration for the columns that matter.
Timing, and Do Not Stop Paying
A settlement generally takes 60 to 120 days from first call to funded payment, driven mostly by medical record retrieval and life expectancy underwriting. After you accept an offer, closing documents go to WoodmenLife for the ownership change, and funds stay in escrow until the society confirms it.
Keep every premium current until the money is released. This matters more with GUL than with any other product, because a missed payment during the process can damage the very guarantee the buyer is paying for. Most states also give sellers a rescission window after closing, commonly around 15 days, so ask what applies where you live.
Weigh It Against the Alternatives
Before selling, ask WoodmenLife what reduced death benefit your existing premium would fully guarantee. Lowering the face amount can cut the bill while keeping some protection, and that may be the right answer if a family member still depends on the coverage. Stopping payments outright is the option that pays you nothing.
Selling makes sense when the coverage no longer serves a purpose and you would rather have cash for care, debt, or income. Work through whether a settlement is worth it and settlement versus surrender before deciding. If you also hold a WoodmenLife variable universal life certificate, that product behaves very differently: see selling a WoodmenLife VUL certificate. Free review, no obligation, at (305) 209-7183.
Frequently Asked Questions
Why would a buyer want a certificate with no cash value?
Because the buyer is purchasing the death benefit, not a savings balance. A long guarantee period with a known, level premium is easier to evaluate than an interest-sensitive contract, which makes GUL attractive in the secondary market.
I paid a premium late once. Is the guarantee ruined?
Not necessarily. Some contracts allow a catch-up payment with interest inside a stated window, and some late payments made within the grace period cause no harm. Ask WoodmenLife for the current guarantee status in writing.
Can I stop paying premiums once I request offers?
No. Keep paying until the sale closes and funds are released. A missed payment during the process can impair the guarantee and shrink or eliminate the offer.
Does WoodmenLife have to approve the sale?
The society does not decide whether you sell. It processes the ownership change afterward and may verify that the assignment complies with the certificate, which is why the fraternal assignment question should be settled early.
How much might a GUL certificate bring?
It depends on the insured’s age and health, the death benefit, the guarantee period, and the premium required. Market studies describe a broad range of roughly 10% to 35% of face value, but a real figure requires reviewing the actual contract.
What if I only have $75,000 of coverage?
Most buyers concentrate on death benefits of $100,000 or more, so smaller certificates often do not attract offers. A free review will tell you quickly, and if it is not a fit you can ask the society about reducing the face amount to lower the premium instead.
Will I owe taxes on a settlement payment?
Possibly. Treatment depends on your cost basis and health status, and differs for a chronically or terminally ill insured. Ask a CPA or tax attorney. This page is not tax advice.
How do I start?
Send the certificate cover page for a free policy review or call (305) 209-7183. There is no cost, no obligation, and you will get a straight answer about whether the certificate is a candidate.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- Cash Surrender Value Life Insurance
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Life Settlement Vs Surrender
- Sell My Woodmenlife Variable 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.