Term life insurance policies can qualify for a life settlement if they include a conversion option — the right to convert the term policy into permanent coverage before the conversion deadline.
Term Life Insurance
Most term policies expire worthless — no cash value, no market value, no options. But if your term policy has a conversion option, it may be worth significantly more than you think. We'll tell you if it qualifies.
Check If Your Term Policy QualifiesMost term policies expire worthless. No cash value. No market value. No options. The insurer collects premiums for years, the term ends, and the policyholder walks away with nothing.
But if your term policy has a conversion option — the ability to convert to a permanent policy — it may have significant value. That single clause changes everything.
The conversion right lets you lock in permanent coverage without a new medical exam. For someone whose health has changed, that's extraordinarily valuable. And a permanent policy — especially one tied to a healthy original underwriting class — has real, measurable value on the secondary market.
Not every term policy qualifies. But when the right factors align, a term policy can generate a life settlement that rivals permanent policy transactions. Here's what we look for.
Conversion privilege
The policy must include the right to convert to a universal or whole life policy — without evidence of insurability. This is the single most important factor.
Sufficient time before the conversion deadline
Conversion rights expire. If the window is narrow, we need to move quickly. If it's already expired, the opportunity has passed.
Policyholder age 65+
Life settlement transactions typically require the insured to be at least 65 years old. Younger policyholders may still qualify in certain circumstances.
Health changes
The more the insured's health has changed since original underwriting, the more valuable the conversion right may be to institutional buyers.
We evaluate your conversion option
We review your policy documents, confirm the conversion right, and assess the remaining window and the target permanent policy specifications.
We determine market value
Using the converted policy's projected death benefit and premium schedule, we go to market and collect competitive offers from institutional buyers.
You get paid
We facilitate the conversion and transaction. You receive a lump-sum payment. No more premiums, no expiring coverage — just cash.
If your term policy has conversion rights and you're considering letting it lapse, call us first.
You may be walking away from real money. Conversion windows close and they don't reopen. Once the deadline passes, the option is gone permanently.
We'll review your policy at no cost and tell you whether your conversion right has market value — and what that value is.
Check If Your Term Policy QualifiesFree evaluation. No obligation.
Key Takeaway
Don't let your term policy expire worthless. If it has a conversion option, you may be able to sell it through a life settlement — even if the term is about to end.
You can sell a term life policy if it has a conversion option — the right to convert to permanent coverage. The conversion must be available (not expired), and the policy must meet standard eligibility requirements.
A convertible term life settlement involves converting your term policy to permanent coverage and then selling it through a life settlement. The conversion is part of the settlement process — the buyer handles the conversion costs.
If your term policy has a conversion option that hasn't expired, you may be able to sell it through a life settlement. This turns an expiring policy — worth $0 if it lapses — into a lump-sum cash payment.