Yes, a WoodmenLife universal life certificate can generally be sold through a life settlement when the owner and the certificate qualify. The contract belongs to you, a buyer purchases it from you, and the society is not a party to the decision. WoodmenLife’s role at the end is administrative: recording the new owner once a sale closes.
Universal life is the most frequently sold policy type in the secondary market, and older UL contracts in particular. The reason is structural, not anything about a specific carrier, and understanding it is the difference between paying premiums into a policy that will lapse anyway and turning it into cash while it still has value.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of WoodmenLife. Nothing here is legal, tax, or investment advice. To get a specific answer, send the certificate cover page for a free policy review or call (305) 209-7183.
In This Article
First, the Fraternal Question
WoodmenLife is a fraternal benefit society founded in Omaha in 1890 as Woodmen of the World, rebranded to WoodmenLife in 2015. Members hold certificates rather than ordinary policies, the society has no shareholders and pays no shareholder dividends, and members participate through local chapters. In its early decades the society was well known for providing grave markers to members, a piece of Americana still visible in cemeteries across the country.
The practical question for a settlement is narrow: does your certificate permit an absolute assignment to a non-member institutional owner? Fraternal contracts sometimes carry membership-linked language that other policies do not. Ask WoodmenLife in writing, for your specific certificate series, and verify it as of 2026 rather than relying on what was true for a different contract years ago.
Why 1980s and 1990s Universal Life Fails Late
Universal life splits your premium into an account value that earns interest and monthly charges that come out of it. Two things then happen with time.
The cost of insurance charge rises every single year as the insured ages. It is small in your 50s and can be many times larger in your 80s. At the same time, a huge share of the universal life sold from the 1980s into the early 2000s was illustrated at crediting rates of 8% to 12%, which reflected the interest-rate world of that era. Those rates did not last. Many contracts have credited at or near their guaranteed floor, commonly 3% or 4%, for years.
The result is an account value that never grew the way the original illustration promised, facing charges that grew exactly as promised. The certificate needs far more premium than planned, right at the age when the owner is least interested in paying it.
Request the In-Force Illustration and Find the Lapse Year
Call the service number on your WoodmenLife statement and ask for an in-force illustration. It is free and you are entitled to it. Request three scenarios:
- Current assumptions: what happens if today’s crediting rate and charges continue.
- Guaranteed assumptions: the worst case the contract permits, minimum interest and maximum charges.
- Premium to endow or carry to age 100: the annual amount needed to keep the certificate in force for life.
Then find the year the account value reaches zero. That is your lapse year. If it falls before a normal life expectancy, you are on track to pay for years and receive nothing. Our guide to reading an in-force illustration walks through the columns.
| Illustration Scenario | What You Are Asking For | What the Answer Tells You |
|---|---|---|
| Current assumptions | Projection at today’s crediting rate and charges | The realistic lapse year if nothing changes |
| Guaranteed assumptions | Minimum interest, maximum charges | The worst case the contract allows |
| Premium to age 100 | Annual amount to carry the certificate for life | The true long-term cost of keeping it |
| No further premium | How long the account value alone lasts | Your deadline if you stop paying today |
| Loan payoff quote | Balance plus accrued interest | How much comes off any settlement offer |
What That Lapse Date Is Worth to a Buyer
Here is the part that surprises people. A certificate that is struggling on your balance sheet can still be valuable on someone else’s, because the buyer is not trying to make the account value last. The buyer plans to pay whatever premium keeps the death benefit alive and collect it eventually.
Offers are driven by the insured’s life expectancy, the death benefit size, and the annual cost to carry the certificate. Most buyers look for $100,000 or more of death benefit. Published market research, including the GAO’s study (GAO-10-775), found sellers typically received roughly 10% to 35% of face value and on average several times the cash surrender value. Since a depleted UL often has very little surrender value left, the comparison that matters is the offer against the alternative of eventually receiving nothing.
Loans, Withdrawals, and Grace Periods
Three things to check on the statement before you go further. An outstanding certificate loan reduces the death benefit and is generally paid off from proceeds at closing. Prior partial withdrawals have permanently reduced both account value and, often, the death benefit. And if you have received a grace-period or premium-shortfall notice, deal with it immediately, because a lapsed certificate has nothing left to sell.
If a certificate lapsed recently, ask WoodmenLife whether a reinstatement window is still open. Reinstatement usually requires paying back premiums with interest and may require evidence of insurability, but it can restore an asset that would otherwise be gone.
Process and Realistic Timing
Expect about 60 to 120 days. The steps run in order: application and authorization, medical record retrieval, life expectancy underwriting, offers, acceptance, closing documents, and the ownership change with WoodmenLife. Funds are held in escrow until the society confirms the transfer, then released to you.
Keep paying premiums throughout. Most states give sellers a rescission period after closing, commonly around 15 days, during which you may return the money and unwind the sale. Confirm the rule that applies where you live.
Compare Before You Commit
Selling is one of several ways out. You can lower the death benefit to reduce the required premium, use the account value to carry the certificate for a while without new payments, surrender for whatever value remains, or sell. Which one wins depends entirely on whether the coverage still has a job to do.
Run the comparison with real figures from your illustration. Our pages on settlement versus surrender and how much you might receive are the place to start, and if you also hold a WoodmenLife whole life certificate, see selling a WoodmenLife whole life certificate. Free review, no obligation: send the cover page or call (305) 209-7183.
Frequently Asked Questions
Does WoodmenLife need to approve the sale?
The society does not decide whether you sell your certificate. It processes the ownership change after closing and may confirm the assignment complies with the certificate’s provisions, so settle the assignment question with them at the start.
Why is my premium suddenly not enough?
Universal life charges a cost of insurance that rises each year with age, and many older contracts credit interest far below what the original illustration assumed. The gap between the two is why a premium that worked for decades can stop working in your 70s or 80s.
Can I sell a certificate that is about to lapse?
Often yes, and urgency helps. Buyers care about the death benefit and the insured’s life expectancy, not whether your account value is thin. Do not let it actually lapse first, because a lapsed certificate has nothing left to sell.
What if it already lapsed?
Ask WoodmenLife immediately whether a reinstatement period is still open. Reinstatement typically requires back premiums with interest and may require evidence of insurability, but it can restore a certificate that still has real value.
How much might I receive?
It depends on age, health, death benefit, and the premium needed to keep the certificate in force. Market studies point to a broad range of roughly 10% to 35% of face value, but no honest figure can be quoted without reviewing the actual contract.
Does a certificate loan block a sale?
No. The loan is usually paid off at closing from the proceeds, which reduces your net amount. Bring the current payoff figure to the conversation early.
What is the fraternal assignment issue?
Fraternal societies issue certificates of membership, and some contracts include language tied to membership that can affect transferring ownership to a non-member institution. Ask WoodmenLife in writing whether your certificate permits an absolute assignment.
What do I send to get started?
The certificate cover page is enough. Your latest annual statement and an in-force illustration make the review faster. There is no cost and no obligation, and you can call (305) 209-7183 with questions.
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
- What Is An In Force Illustration
- Life Settlement Vs Surrender
- How Much Can I Get For My Life Insurance Policy
- Sell My Woodmenlife Whole Life Policy
- Education Center
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.