Whole & Universal Life Settlements

Your whole life policy is worth more than the number your carrier will quote to take it back.

You've built real cash value in a whole or universal life policy. But the surrender check the carrier offers is often far below what the same policy could be worth to buyers on the secondary market.

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The Direct Answer

Can you sell a whole life insurance policy?

Yes — and whole life is exactly what the secondary market is built to buy. It is permanent coverage with real cash value, so unlike term there is no conversion step; it can go to buyers as it stands.

The catch most owners miss: the cash surrender value is the carrier's internal number, not what the policy is worth on the open market. Buyers price it as a long-term asset, which is why a sale is often more than the cash surrender value — our guide to cash surrender value explained shows why the carrier's figure runs low.

Whether yours fits depends on the insured's age (generally 65+), the death benefit, and any change in health since issue. Our overview of selling a life insurance policy covers the process for any policy type.

Universal Life, Specifically

Selling a universal life insurance policy

Universal life is just as sellable — and for many owners, just as worth checking.

Universal life is one of the most commonly sold policy types on the secondary market — permanent coverage with cash value, but with flexible rather than fixed premiums. That flexibility is what puts these policies under pressure later in life: as the insured ages, the cost of insurance rises, premiums climb, and an underfunded policy can drift toward lapsing, forfeiting everything paid in.

Most owners assume the only choices are to keep paying or surrender for the cash value. But to an institutional buyer, a universal life policy is an attractive long-term asset — real cash value, a permanent death benefit, a familiar structure. What drives its value is the same as any permanent policy: age, death benefit, health, and how it is funded.

The Evaluation

What makes a permanent policy valuable to buyers

To a buyer, whole and universal life are one category: permanent, cash-value coverage. A few factors shape what one is worth — and our guide to companies that buy life insurance policies covers who the buyers are.

What the Carrier Sees vs. What the Market Sees

The surrender gap

Surrender the policy and you get the carrier's number. The secondary market may value the same policy well above where that offer stops — and the space between is the gap.

Cash surrender valuewhat the carrier offers to take it backThe carrier’s offer stops hereMarket valuethe secondary market may seeThe gapthe market may value above surrender

Surrender value is what the policy is worth to the carrier; market value is what a buyer might pay. Shown as proportion, not a promise — every policy is different.

See what your whole life policy could be worth

A short eligibility check tells you whether your policy is a fit for the secondary market — in less than 60 seconds, free and with no obligation.

The Process

How selling a permanent policy works

No conversion to do, no chasing buyers yourself. Lifestone is the connector, not the buyer — we handle the parts that involve your carrier.

  1. Start with a free policy review

    We look at your policy — type, death benefit, premium structure, age and health — to see whether it is a fit. No cost, no obligation.

  2. We shop it to institutional buyers

    We present your policy to institutional buyers, let them compete, and handle the paperwork and carrier coordination.

  3. Offers come back to you

    Offers come back through us. Because buyers price the same policy differently, competition surfaces a stronger number than any single offer.

  4. You decide

    If an offer fits, you accept and receive a lump sum; the buyer takes over the premiums. If not, you walk away — no obligation at any step.

Lifestone is the connector, not the buyer — a family-owned life settlement company that connects sellers with institutional buyers and shops your policy so they compete. Our overview of selling a life insurance policy covers what happens after an offer.

Common Questions

Selling a whole or universal life policy — what people ask

Before you surrender, see what the market would offer

Surrendering hands the policy back for the carrier's number. A free, no-obligation review tells you whether the secondary market values it higher — before you decide.

Or call (954) 933-2412 · Mon–Fri 9am–5pm ET

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