Yes. A guaranteed universal life policy issued by Zurich American Life Insurance Company can be sold in a life settlement, and the carrier’s permission is not required, because what a buyer purchases is the contract you already own. Ownership of a life insurance policy has been treated as transferable property since the Supreme Court’s 1911 decision in Grigsby v. Russell, and nothing in a GUL contract changes that.
GUL is a favorite of secondary-market buyers for one specific reason: the no-lapse guarantee. Pay the scheduled premium on time and the death benefit stays in force to a very old age, often 95, 100, or 121, no matter what interest rates do. A buyer knows almost exactly what the coverage costs to keep. That predictability is worth money.
The flip side is unforgiving. GUL builds little or no cash value, and a premium that arrives late can permanently break the guarantee. This page covers who services Zurich American Life contracts today, how the guarantee is valued and how it is lost, the catch-up rules, and when keeping a GUL beats selling it. Pine Lake Life Solutions is not affiliated with Zurich American Life Insurance Company.
In This Article
- Zurich American Life in 2026: Who Holds the Contract
- Why the No-Lapse Guarantee Makes GUL Attractive to Buyers
- How a Missed or Late Premium Voids the Guarantee
- The Documents That Determine Your Offer
- Running the Numbers: A Hypothetical GUL Case
- Change of Ownership: The Step That Actually Closes the Deal
- When You Should Keep the GUL Instead
- Next Steps and the Advice You Still Need
- Frequently Asked Questions
Zurich American Life in 2026: Who Holds the Contract
Zurich American Life Insurance Company is the U.S. life subsidiary of Zurich Insurance Group, the Swiss insurer, with American operations based in Schaumburg, Illinois. The company operated under a different corporate name earlier in its history and was rebranded under the Zurich name around 2010; verify that against your own contract, since older documents may show the prior name.
In recent years Zurich’s U.S. life focus has been group and employer-sponsored benefits rather than individually sold permanent life, and older individual blocks have in some cases been reinsured or placed in runoff. Verify current servicing arrangements before you rely on any of it. Practically, the servicing office is the one that will issue an in-force illustration and record an ownership change, so call the number on your annual statement and confirm who that is.
Why the No-Lapse Guarantee Makes GUL Attractive to Buyers
A traditional universal life policy is a moving target. Its cost of insurance climbs with age, and if credited interest disappoints, the account value drains and the premium has to rise. A buyer pricing that policy has to guess. A GUL removes most of the guessing: as long as the guarantee premium is paid on schedule, coverage is contractually locked to the guarantee age.
That means the buyer can model a fixed annual cost against a fixed death benefit. Fewer unknowns generally translate into a firmer offer. GUL is also usually issued with a high face amount relative to premium, which fits the $100,000-and-up threshold most buyers set. Where GUL loses ground is cash value: because there is almost none, a GUL owner who cannot afford premiums has essentially nothing to fall back on, which is exactly why a settlement is often the only way to salvage value.
How a Missed or Late Premium Voids the Guarantee
This is the part people learn too late. No-lapse guarantees are typically tied to a cumulative premium test: at any point, total premiums paid, adjusted for timing, must be at least the amount required to keep the guarantee alive. Pay less, or pay late, and the test fails. The policy itself may keep running on whatever account value remains, but the guarantee that made it valuable can be gone for good.
Most contracts allow a catch-up, and the rules are strict. Typically you must pay the shortfall plus an interest adjustment, and often you must do it within a defined window such as the grace period or a stated number of days. Some contracts allow reinstatement of the guarantee only with carrier approval and evidence of insurability. If you have been paying erratically, ask the service center in writing for a guarantee status letter that states whether the no-lapse guarantee is currently intact and what it would cost to restore it.
The Documents That Determine Your Offer
Two documents do most of the work. First, the recent annual statement or policy cover page: owner, insured, face amount, policy number, issue date. Second, an in-force illustration, which the carrier will prepare on request. For GUL you want more than one version of that illustration.
Ask for an illustration showing the premium required to maintain the no-lapse guarantee to the guarantee age, and a second showing the minimum premium to keep the policy in force without the guarantee. The gap between those two numbers tells a buyer how fragile the contract is. Also request confirmation of any outstanding policy loan, since a loan reduces the net death benefit and therefore the offer.
| GUL premium history | Effect on no-lapse guarantee | Effect on a settlement offer |
|---|---|---|
| Guarantee premium paid on schedule | Guarantee intact to the stated age | Strongest position; costs are predictable |
| Premium paid late but inside the grace period | Often curable with an interest adjustment | Minor impact if cured before closing |
| Underpaid for several years | Guarantee may be permanently broken | Offer drops; buyer must fund a rising premium |
| Guarantee lost, policy still in force on account value | Coverage now depends on account value | Priced like standard universal life |
| Policy loan outstanding | No direct effect on the guarantee test | Reduces net death benefit and the offer |
| Policy lapsed entirely | Coverage ended | Nothing to sell; ask about reinstatement rules |
Running the Numbers: A Hypothetical GUL Case
Take a hypothetical 78-year-old with a $500,000 Zurich GUL, a guarantee premium of $12,000 a year, and roughly $2,000 of cash surrender value. Surrendering pays $2,000. Lapsing pays nothing. A life settlement in that fact pattern might land somewhere in the broad 10% to 35% of face range that the market generally works within, and even the low end of that range dwarfs $2,000.
These numbers are illustrative only, not a quote. Real offers turn on the insured’s life expectancy, the exact premium schedule, and whether the guarantee is intact. But the structural point holds: for GUL specifically, cash surrender value is usually so small that the comparison is not close. The GAO found in its 2010 study, GAO-10-775, that settlement payouts ran roughly four to eight times cash surrender value, and GUL sits at the extreme end of that spread precisely because its surrender value is near zero.
Change of Ownership: The Step That Actually Closes the Deal
A settlement closes through an absolute assignment, or change of ownership, filed with the carrier. The buyer submits the carrier’s own forms naming a new owner and a new beneficiary; the seller signs; the carrier records it and issues confirmation. Escrow releases funds when that confirmation arrives.
Carriers process these routinely, but they are particular about their forms, and turnaround can add several weeks. Ask the service center which form numbers they require and whether they need a notarized signature or a medallion signature guarantee. Getting that right in advance is one of the few parts of the timeline a seller can actually speed up.
When You Should Keep the GUL Instead
Keep it if the coverage is still needed and the premium is affordable. GUL is often purchased precisely to guarantee an estate, fund a bequest, or equalize inheritances among children. If that purpose is alive and the premium is not straining the household, selling trades a guaranteed future benefit for a smaller amount today.
Keep it, too, if premiums can be covered from an existing source you had forgotten about, such as an old annuity or a paid-up policy that can be exchanged. And if the insured is terminally ill, check the policy for an accelerated death benefit rider first, since a rider payout can be faster and involves no buyer at all. Selling should be the answer when the premium has become unaffordable, the need has passed, or the money is needed for care today.
Next Steps and the Advice You Still Need
Life settlement proceeds are generally taxed in layers based on your cost basis in the policy, and the 2017 federal tax law changed part of that calculation. Medicaid planning adds another layer, because turning insurance into cash can create a countable asset. Those are descriptions of how the rules are built, not advice. Take the offer paperwork to a CPA and, if long-term care is in the picture, to an elder law attorney.
If you want to know whether a Zurich American Life GUL contract is a realistic candidate, the fastest starting point is the policy cover page. Send it for a free policy review, or call (305) 209-7183 to talk through the guarantee status first. There is no cost to find out, and no obligation to sell.
Frequently Asked Questions
Does a GUL policy have enough cash value to surrender instead?
Usually not. Guaranteed universal life is priced to deliver death benefit rather than accumulation, so surrender values are often tiny or zero even after many years of premiums. That is the main reason a settlement and a surrender are rarely close in value for this policy type.
Can I fix a broken no-lapse guarantee?
Sometimes. Many contracts allow a catch-up payment of the shortfall plus an interest adjustment, often within a limited window. Others require carrier approval or evidence of insurability. Ask the service center for a written guarantee status letter and the exact catch-up amount.
What documents will I be asked for?
A recent policy statement or cover page, an in-force illustration showing the premium needed to maintain the guarantee, confirmation of any loan balance, and a signed HIPAA authorization so life expectancy can be assessed.
Does Zurich have to agree to the sale?
No. The carrier records a change of ownership and change of beneficiary after the sale closes. It has no authority to approve or reject your decision to sell the contract you own.
How much can a GUL policy sell for?
The market generally works in a range of roughly 10% to 35% of the death benefit, with most cases far below the top. Age, health, face amount, and the guarantee premium all move the number. Only a full review produces an actual offer.
Who pays premiums after closing?
The buyer. From the ownership transfer forward, the buyer funds the guarantee premium and receives the death benefit. Your obligation ends and so does the coverage for your family.
How long does a GUL settlement take?
Typically 60 to 120 days from initial review to funding, including medical records review, offers, and carrier processing of the ownership change.
Is Pine Lake affiliated with Zurich American Life?
No. Pine Lake Life Solutions is independent and has no relationship with Zurich American Life Insurance Company or Zurich Insurance Group. Contact the carrier directly for anything about your contract’s terms.
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Related Reading
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- Cash Surrender Value Life Insurance
- What Policies Qualify For Life Settlement
- What Is Cash Surrender Value
- Education Center
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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.