If you or a parent no longer needs a life insurance policy, selling it is usually worth pricing before cancelling it — and in Montgomery County the most common version of that question involves military coverage. A life settlement is the sale of the policy contract to an institutional buyer who takes over the premiums and receives the death benefit later. The seller gets a lump sum now, typically somewhere between roughly 10% and 35% of the face amount depending on age, health and premium load.
Montgomery County is anchored by Clarksville, the county seat, and includes Sango, St. Bethlehem and the corridor running north toward the Oak Grove area just across the Kentucky line. Fort Campbell straddles that state border, and the county carries one of the largest active-duty and veteran Army populations in the country. That single fact drives the technical content on this page: for most Clarksville families, the policy in question is Servicemembers’ Group Life Insurance, Veterans’ Group Life Insurance, or a commercial policy that came out of one of them.
This page explains what can and cannot be sold, and how it interacts with long-term care planning. Pine Lake Life Solutions offers a free policy review — send the policy cover page or call (305) 209-7183.
In This Article
- SGLI, VGLI and Why Conversion Is the Whole Ballgame
- Retired Career Soldiers and the Second Policy Nobody Remembers
- TennCare CHOICES and the $2,000 Countable-Asset Limit
- VA Benefits and TennCare Are Different Systems
- The 60-Month Look-Back and Estate Recovery
- Documents to Gather and What the Process Looks Like
- Vetting a Buyer Without Guesswork
- What to Do This Week
- Frequently Asked Questions
SGLI, VGLI and Why Conversion Is the Whole Ballgame
Servicemembers’ Group Life Insurance is group term coverage provided through the Department of Veterans Affairs while a member is serving. Veterans’ Group Life Insurance is the post-separation continuation of that coverage. Both are group term products administered under a federal program, and neither is a contract an individual can turn around and sell on the secondary market. Group certificates generally are not transferable, and government-sponsored coverage is not an asset a settlement buyer can purchase.
What matters is the conversion right. Departing servicemembers have a limited window to convert SGLI to VGLI, and separately, both SGLI and VGLI carry a right to convert to a commercial permanent policy with a participating insurer. A permanent policy issued through that conversion is an ordinary individual contract owned by the veteran — and an ordinary individual permanent contract is the kind of policy the settlement market buys.
Conversion deadlines are short and unforgiving. Verify the current 2026 conversion windows and the list of participating companies directly with the VA or the SGLI/VGLI program office before assuming anything, because those rules change and the deadline is the one thing nobody can fix after the fact.
Retired Career Soldiers and the Second Policy Nobody Remembers
Twenty-year retirees who came through Fort Campbell frequently ended up with more than one policy. There is the group coverage. There is often a commercial whole life or universal life policy bought from an agent working the local market in the 1980s or 1990s. Sometimes there is a small final-expense policy layered on top in the 2000s.
By the time that veteran is in their seventies in Sango or St. Bethlehem, the commercial policy is the one worth locating. Pull the cover page and find out three things: the face amount, whether it is permanent or term, and who owns it. Face amounts under $100,000 are generally too small for the settlement market to price, so a small burial policy is usually not a candidate — and it is fair to say so plainly rather than string a family along.
TennCare CHOICES and the $2,000 Countable-Asset Limit
Tennessee’s Medicaid program is TennCare, and long-term services and supports are delivered through TennCare CHOICES, which covers nursing facility care and home and community-based services. Eligibility is both financial and functional: an applicant has to meet a level-of-care standard as well as the asset and income tests.
The countable-asset limit for a single applicant is $2,000. Verify the 2026 number with TennCare. Excluded assets generally include the primary residence within federal home-equity limits, one vehicle and personal effects. The cash surrender value of a permanent life insurance policy is generally countable above a small face-amount exclusion — which is exactly why old policies surface during Medicaid applications rather than before them.
Nursing facility costs in this part of Tennessee commonly run in the range of seven to nine thousand dollars a month as a 2026 regional ballpark. Check that against the latest CareScout (formerly Genworth) Cost of Care survey before planning around it.
VA Benefits and TennCare Are Different Systems
Families around Fort Campbell often assume that VA benefits and TennCare are one process. They are not. VA pension programs, including Aid and Attendance, have their own net-worth limit and their own three-year look-back on transfers. TennCare has its own $2,000 countable-asset test and a 60-month look-back.
Proceeds from selling a life insurance policy are cash, and cash is visible to both systems. That is not a reason to avoid a sale — it is a reason to know in advance where the money is going and to speak with an accredited VA claims agent or attorney and a Tennessee elder law attorney before the funds arrive rather than after.
| Coverage type | Sellable on the secondary market? | What to check first |
|---|---|---|
| SGLI (active duty group term) | No | Federal group coverage; look at conversion rights instead |
| VGLI (veterans group term) | Generally no | Ask the program office about converting to a commercial permanent policy |
| Commercial policy converted from SGLI or VGLI | Often yes | Individually owned permanent contract; confirm face amount is $100k or more |
| Employer group life | Not as-is | A policy created by exercising the plan conversion right can qualify |
| Individual whole or universal life | Often yes | Face amount, in-force illustration, loan balance |
| Convertible term | Sometimes | Only while the conversion privilege is still open — deadlines are strict |
| Small final-expense policy | Usually no | Under $100,000 is generally too small for the market to price |
General summary only. Verify SGLI and VGLI rules with the VA and TennCare rules with the state.
The 60-Month Look-Back and Estate Recovery
TennCare reviews the five years before a long-term care application for transfers made for less than fair market value. A gift inside that window creates a penalty period during which TennCare will not pay for care, and the penalty begins when the applicant would otherwise be eligible.
Selling a policy at fair market value is an exchange, not a gift. Keep the offer letter, the closing statement and the escrow confirmation with the application file so a caseworker can see the transaction for what it was.
Tennessee also runs a Medicaid estate recovery program, seeking repayment from the estate of a deceased recipient who was 55 or older and received long-term care services. Protections and hardship waivers exist. Confirm current practice with a Tennessee elder law attorney — how broadly the state defines the recoverable estate matters more day to day than the headline rule.
Documents to Gather and What the Process Looks Like
The starting document is the policy cover page: carrier, policy number, owner, insured and death benefit. That is enough for a first opinion. If the case looks viable, the next items are an in-force illustration from the carrier, a current statement showing cash value and any policy loan, and a signed HIPAA authorization so medical records can be ordered.
For a converted military policy, add the conversion paperwork and confirmation from the issuing carrier that the policy is in force and individually owned. That documentation removes the single biggest question a buyer will have about the case.
Plan on 60 to 120 days from submission to funding. At closing, funds go to a third-party escrow agent who releases them only after the carrier records the change of ownership. Nobody should ask you to sign the policy over before the money is in escrow.
Vetting a Buyer Without Guesswork
Tennessee regulates the life settlement market and licenses the companies in it. The Tennessee Department of Commerce and Insurance is where you verify a firm, and you should run that check yourself before you send anyone medical records.
Understand the two roles. A provider buys policies for its own account. A broker shops the case to multiple providers and is generally paid a commission out of your proceeds — ask what that commission is in dollars and confirm it appears on the closing statement. Ask who holds escrow. Ask about the rescission period, the window after closing during which a seller may cancel and return the money, and get the current Tennessee terms in writing.
Veterans are a heavily targeted group for insurance-adjacent pitches. Three things should end any conversation: a firm price quoted before medical underwriting, any up-front fee, and pressure to sign the same day.
What to Do This Week
Call the carrier’s service line and ask for three numbers in writing: current cash surrender value, outstanding loan balance, and the reduced paid-up death benefit. Reduced paid-up — a smaller permanent death benefit with no further premiums — is a real option that is rarely explained, and occasionally it is the right answer.
If the policy in question is SGLI or VGLI, call the program office instead and ask, in writing, what conversion rights remain and by what date. For free help on the benefits side, Montgomery County residents can contact the county Veterans Service Office and the statewide SHIP counseling program.
Then get a settlement estimate so you can compare all four paths honestly. Pine Lake Life Solutions reviews policies at no cost — send the cover page or call (305) 209-7183.
This page is educational only and is not legal, tax, medical or investment advice. Confirm current 2026 TennCare CHOICES rules and VA conversion deadlines with the appropriate agency or a Tennessee elder law attorney before acting.
Frequently Asked Questions
Can I sell my SGLI or VGLI coverage?
No. Both are federal group term programs and are not individual contracts that can be transferred to a buyer. What you can do is look at your conversion rights, because a commercial permanent policy created by conversion is an ordinary individually owned contract. Confirm current conversion windows with the VA or the program office.
What is the conversion deadline after leaving the service?
The windows are short and they differ between converting SGLI to VGLI and converting to a commercial policy with a participating insurer. Because these rules change, verify the current 2026 deadlines and participating-company list directly with the VA rather than relying on secondhand information. A missed deadline generally cannot be reopened.
What is Tennessee’s Medicaid asset limit for long-term care?
TennCare CHOICES applies a countable-asset limit of roughly $2,000 for a single applicant; verify the 2026 figure with TennCare. The primary residence within federal equity limits, one vehicle and personal effects are generally excluded. Applicants also have to meet a level-of-care standard.
Do VA benefits and TennCare use the same asset rules?
No. VA pension programs such as Aid and Attendance have their own net-worth limit and a three-year look-back on transfers, while TennCare has its own countable-asset test and a 60-month look-back. Settlement proceeds are cash and are visible to both. Talk to an accredited VA claims agent and an elder law attorney before the money arrives.
How much could a policy sell for?
It depends on the policy and the medical records, so nobody can quote responsibly sight unseen. Market-wide, settlements commonly fall between roughly 10% and 35% of the death benefit, and a 2010 GAO review found sellers received about four to eight times cash surrender value. Age, health and premium load drive the result.
My father has a $15,000 burial policy. Can that be sold?
Almost certainly not. Buyers generally need a death benefit of $100,000 or more for the economics to work, so small final-expense policies do not clear that bar. It is more useful to know that up front than to spend three months finding out.
How long does a settlement take?
Roughly 60 to 120 days from submission to funding. Ordering medical records and obtaining the carrier’s in-force illustration are typically the slowest steps. Escrow releases the money after the carrier records the change of ownership.
Does Pine Lake buy policies in Tennessee?
This page is educational. Pine Lake Life Solutions offers a free policy review so a family can compare a possible offer against surrendering, taking reduced paid-up coverage, or keeping the policy. Send the policy cover page or call (305) 209-7183.
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
- Life Settlement Licensing Tennessee
- Tennessee Medicaid Asset Income Limits
- What Policies Qualify For Life Settlement
- Life Settlement Vs Cash Surrender Value
- How It Works Policy Options
- Sell Life Insurance Policy Williamson County Tn
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.