Yes — an Allstate term life policy can often be sold in a life settlement, but usually only while its conversion privilege is still alive. Term insurance has no cash value, so if you stop paying, you walk away with nothing. That makes the conversion right — the contractual option to swap the term policy for a permanent one without a medical exam — the key that unlocks any value. Once that window closes, a term policy is generally sellable only if the insured has a serious health impairment.
First, a naming note: Allstate sold Allstate Life Insurance Company to Blackstone-backed Everlake Life in 2021, so your legacy Allstate term policy is now serviced by Everlake. The conversion privilege printed in your contract survived the transfer — but its deadline did too, and that deadline is the single most important date on the page.
This guide explains how to find your conversion deadline, what a convertible term policy can be worth, and how the conversion-plus-settlement transaction actually works. Pine Lake Life Solutions is not affiliated with Allstate or Everlake Life.
In This Article
- Why Term Is Different: No Cash Value, One Exit
- Find Your Conversion Deadline — Today
- What a Convertible Allstate Term Policy Can Be Worth
- How the Conversion-Plus-Settlement Process Works
- When Lapsing Really Is the Answer — and When It Isn’t
- Red Flags and Practical Cautions
- Frequently Asked Questions
Why Term Is Different: No Cash Value, One Exit
With whole life or universal life, you always have a fallback — surrender the policy and collect its cash value. Term has no such floor. Let an Allstate term policy lapse and decades of premiums produce exactly zero. That’s the trade you made for cheap coverage, and for most of the policy’s life it was a fair one.
But near the end of the term, the math can flip. If the insured is now a senior — or has developed significant health conditions — the death benefit has real economic value to a settlement buyer. The only way to deliver that value is to convert the term policy into a permanent policy (which a buyer can hold indefinitely) and sell the converted policy. This conversion-plus-settlement route is how term owners walk away with cash instead of nothing. The alternative path, selling an unconverted term policy directly, generally works only when the insured’s health is seriously impaired and the remaining term is long enough to matter.
Find Your Conversion Deadline — Today
Everything hinges on one date. Pull your policy (or call Everlake, which services legacy Allstate term policies since the 2021 sale) and find the conversion provision. Deadlines vary by product: some policies allow conversion for the full level-premium period, others cut it off after a set number of years or at a stated age — often age 65 or 70. Check your specific contract rather than assuming.
If the deadline has not passed, you have options and some urgency. If it is approaching — within the next 6 to 12 months — treat it as a use-it-or-lose-it asset, because that is exactly what it is. And if you’re not sure who services the policy or whether it’s still in force, call the number on your last premium notice; the Allstate-to-Everlake transfer confused many owners, and as of 2026 a direct call is the fastest way to confirm status and the exact conversion cutoff.
What a Convertible Allstate Term Policy Can Be Worth
Once converted to permanent coverage, the policy is priced like any other settlement candidate. The federal GAO market study (GAO-10-775) found sellers typically received about 10% to 35% of face value. Because a term policy’s “surrender value” is zero, any settlement proceeds are pure upside relative to lapsing — there is no 4-to-8-times-CSV comparison to make, just something versus nothing.
What drives the offer: the insured’s age and health, the face amount (Pine Lake reviews policies of $100,000 and up), and the premium schedule on the permanent product the policy converts into. Buyers model those conversion premiums carefully — a rich conversion product can support a strong offer, a costly one compresses it. You don’t need to run this math yourself; it’s exactly what a qualification review determines from your policy details.
| Term Policy Situation | Settlement Outlook | Next Step |
|---|---|---|
| Conversion window open, insured 65+ | Strong candidate via conversion + settlement | Free review now — before the window closes |
| Conversion window open, insured younger with serious illness | Possible candidate; health drives value | Free review with health details |
| Conversion window closed, insured seriously ill, term still running | Narrow possibility as a direct term sale | Ask for a case-by-case review |
| Conversion window closed, insured healthy | Generally no market value | Lapse or keep; no forced transaction |
How the Conversion-Plus-Settlement Process Works
The transaction has one more step than a standard settlement:
- 1. Free review (days). Send the policy cover page; a specialist confirms the conversion window is open and the policy profile fits.
- 2. Offer subject to conversion. Buyers evaluate the insured’s life expectancy and the conversion product’s costs, then make an offer contingent on conversion.
- 3. Conversion filed with Everlake. The term policy converts to the permanent product specified in your contract — no medical exam required, which is the entire point of the privilege.
- 4. Contracts and escrow. Sale documents are signed; your funds sit with an independent escrow agent.
- 5. Ownership change and funding. Everlake records the new owner; escrow releases payment; most states provide a rescission window.
Allow 60 to 120 days, and start well before the conversion deadline — the process cannot outrun a closed window.
When Lapsing Really Is the Answer — and When It Isn’t
Honesty matters here: many term policies should simply lapse. If the insured is younger and healthy, the conversion window is long gone, or the face amount is small, there may be no market for the policy and no reason to force a transaction. Letting cheap coverage expire when it’s no longer needed is a perfectly rational outcome.
The costly mistake is lapsing a policy that had value. It happens constantly: a senior stops paying term premiums to save money, unaware that the conversion privilege made the policy worth tens of thousands of dollars to a buyer. Before you let any term policy on an insured over 60 lapse — or any policy where the insured’s health has declined seriously — spend the few minutes a free review takes. Compare the outcomes side by side in our settlement vs. surrender guide, keeping in mind that for term, “surrender” means walking away with zero.
Red Flags and Practical Cautions
A few term-specific cautions:
- Don’t stop paying premiums during the process. A lapsed term policy is worth nothing, and reinstatement may require new medical underwriting.
- Don’t convert before you have a deal. Converting raises your premiums immediately; convert as part of a transaction, not on speculation.
- Get every offer in writing, with gross and net-of-commission figures if a broker is involved.
- Never transfer ownership before funds are in escrow.
If you also hold permanent Allstate coverage, see our companion guides on selling an Allstate whole life policy or an Allstate group/employer policy — the group guide matters if your term coverage is actually a workplace certificate, which follows different (and tighter) conversion rules. Questions? Call (305) 209-7183.
Frequently Asked Questions
Can I really sell a term policy that has no cash value?
Often yes — through conversion. If your Allstate/Everlake term policy is still convertible, it can be exchanged for a permanent policy without a medical exam and sold in a life settlement. Without an open conversion window, a sale generally requires the insured to have a serious health impairment.
How do I find my conversion deadline?
Look for the conversion provision in your policy contract, or call Everlake — the company servicing legacy Allstate life policies since Allstate sold that business in 2021. Deadlines vary by product: some run the full level-premium period, others end at a set age such as 65 or 70. Verify your exact date rather than assuming.
Does converting my term policy raise my premiums?
Yes — permanent coverage costs more than term. That’s why you shouldn’t convert speculatively. In a settlement transaction, conversion happens as part of the sale, and the buyer takes on the permanent policy’s premiums after closing.
What could my term policy be worth?
Offers on converted policies typically fall in the broad 10% to 35% of face value range found in the federal GAO study, depending on the insured’s age, health, and the conversion product’s premium costs. Since a lapsed term policy pays you nothing, any offer is pure upside by comparison.
Allstate sold its life business — is my term policy still valid?
Yes. Allstate sold Allstate Life Insurance Company to Blackstone-backed Everlake Life in 2021, and Everlake now services those policies. Your coverage, conversion privilege, and right to sell are all intact; only the servicing company changed.
Should I keep paying premiums while exploring a sale?
Absolutely. A lapsed term policy has zero value and may not be reinstatable without new underwriting. Keep the policy current until a transaction closes and funds are released from escrow.
What do I send to get started?
Just the policy cover page — the first page showing the insurer, policy number, face amount, and issue date. Pine Lake’s review is free and will tell you quickly whether the conversion window and policy profile support a sale.
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 Vs Surrender
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Sell My Allstate Whole Life Policy
- Sell My Allstate Group 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.