Yes — an Ameritas term life policy can be sold in a life settlement, provided the policy is still convertible to permanent coverage; buyers purchase the converted policy, and the conversion is normally handled as part of closing rather than paid for by you in advance. The right to sell is not the obstacle. A life insurance policy is your personal property, the buyer purchases the contract from you, and Ameritas’s permission is not required.
Term is different from every other policy type in one respect that governs the entire decision: it has no cash value. If it expires or you stop paying, you receive nothing. The only thing standing between a term policy and that outcome is the conversion privilege — a contractual right to exchange it for permanent coverage without new medical underwriting — and that right expires on a date fixed in your contract.
This guide covers how to read your conversion provision, the traps in laddered and rider-based term coverage, how conversion and a sale are sequenced, and what to do when the window is nearly closed. Pine Lake Life Solutions is not affiliated with Ameritas. Education only — not legal, tax, or investment advice.
In This Article
- Read the Conversion Provision Before You Do Anything Else
- Two Traps: Laddered Policies and Term Riders
- Ameritas’s Mutual Structure and What It Means for You
- How Conversion and the Sale Are Sequenced
- What the Policy Might Be Worth — and What It Is Compared Against
- Working Backward From the Deadline
- If Conversion Has Already Expired
- Frequently Asked Questions
Read the Conversion Provision Before You Do Anything Else
Open the contract and find the provision titled “Conversion” or “Conversion Privilege.” You are looking for four things: whether conversion is permitted at all, the last date it is permitted, whether the full face amount or only part can be converted, and which permanent products the policy converts into.
Deadlines are typically expressed one of two ways — a number of policy years from issue, or an attained age of the insured, with the mid-60s to age 70 common across the industry. Whichever limit arrives first ends the privilege. Some contracts also limit conversion to the level premium period, meaning the right ends when premiums start increasing annually.
If you cannot locate the contract, call Ameritas policyholder service, ask for confirmation in writing of the exact last conversion date and the products available, and confirm the answer directly with the carrier as of 2026. Do not rely on an agent’s recollection or on a summary from the original sales kit.
Two Traps: Laddered Policies and Term Riders
Two structures cause more confusion than anything else in term settlements.
Laddered coverage. Many families bought several term policies at different times to layer protection — a larger amount during child-raising years, a smaller amount continuing later. Each policy has its own conversion deadline and its own face amount. It is common for one layer to still be convertible while another has already closed, and for one layer alone to be below the death benefit thresholds buyers look for. Inventory every policy before concluding you have nothing to work with.
Term riders. Term coverage attached as a rider to a permanent policy is not a standalone contract. Rider conversion rules differ from those on standalone term, sometimes with shorter windows, and dropping the base policy can take the rider with it. Ask the carrier specifically whether the coverage in question is a policy or a rider, since owners frequently do not know.
Also ask whether partial conversion is allowed. Converting only part of the face amount can let you keep some coverage in place while making the rest available for a transaction.
Ameritas’s Mutual Structure and What It Means for You
Ameritas Life Insurance Corp., headquartered in Lincoln, Nebraska, operates within a mutual holding company structure — ultimately owned by policyholders rather than public shareholders. Its present shape came from combinations among mutual insurers, including Acacia Life of Washington, D.C., and Union Central Life of Cincinnati, and it maintains a separate company for policies issued in New York. Alongside individual life, Ameritas is a substantial group dental and vision carrier.
For a term owner, the useful consequences are narrow but real. There is no demutualization stock to chase, since the company never converted to publicly traded stock form. And because the in-force block has not been sold from one owner to another, the servicing company on your statement is generally straightforward to identify. If your policy carries an older company name, it is the same coverage under current administration.
Verify the current A.M. Best financial strength rating and the correct policyholder service phone number on the carrier’s own site as of 2026.
| Situation | Can It Typically Be Sold? | First Step |
|---|---|---|
| Convertible term, window still open | Generally yes | Confirm the last conversion date in writing |
| Convertible term, window closing within 90 days | Yes, but time is tight | Flag the deadline immediately; consider converting first |
| Conversion privilege expired | Generally no | Check other policies in the household |
| Non-convertible term | Generally no | Review other coverage or keep through the level period |
| Term rider on a permanent policy | Depends on rider terms | Ask the carrier for the rider’s conversion rules |
How Conversion and the Sale Are Sequenced
The common misconception is that you must convert first, at your own expense, and then find a buyer. In most transactions that is unnecessary and costly.
Instead, a buyer values the policy as it would exist after conversion, and the conversion is executed in coordination with closing. The buyer takes over premium payments on the converted policy from that point forward. You are not left holding an expensive permanent policy while offers are gathered.
Which permanent product the term converts into matters a great deal to the numbers. A conversion into guaranteed universal life — priced as pure death benefit with minimal cash value — is generally efficient for a buyer to maintain. A conversion into a cash-value-heavy product carries higher premiums and reduces what a buyer can pay. Ask the carrier for the current conversion product list and the premium at the insured’s age before assuming anything about value.
What the Policy Might Be Worth — and What It Is Compared Against
Valuation follows the same arithmetic as any other settlement: the death benefit of the converted policy, an estimate of the insured’s life expectancy from medical records, and the present value of the premiums a buyer must pay.
What makes term distinctive is the alternative. There is no surrender value to fall back on, so the honest comparison for a policy you were going to drop is between an offer and nothing at all. That is a different conversation than the one a whole life owner has — see how cash surrender value works for the contrast.
Across the market, the federal GAO study (GAO-10-775) found sellers typically received about 10% to 35% of face value. Term-based transactions fall inside that broad range, with the converted policy’s premiums subtracted by the buyer. Buyers generally look for death benefits of $100,000 or more; read what policies qualify for the full screen.
Working Backward From the Deadline
A settlement typically takes 60 to 120 days from application to funded payment. If your conversion window closes sooner than that, say so on the very first call — it changes how the file is handled and may mean converting first to preserve the right, then evaluating a sale afterward.
The sequence otherwise: a free review from the policy cover page within days; verification with the carrier that the policy is convertible and the exact deadline; two to four weeks gathering medical records and life expectancy estimates; written offers; contracts with funds placed in independent escrow; then conversion and the change of ownership recorded by the insurer, with escrow releasing payment only after that confirmation. Most states then provide a rescission window.
The one irreversible mistake is letting the conversion date pass while paperwork is in motion. No buyer and no broker can restore an expired privilege.
If Conversion Has Already Expired
A non-convertible term policy, or one whose window has closed, generally cannot be sold — and that is the straight answer rather than a reason to keep calling around. What remains worth checking:
- Other layers of laddered coverage that may still be convertible.
- Whether any coverage is a rider on a permanent policy with its own separate rules.
- Other policies in the household — a spouse’s universal life or whole life contract is often the stronger candidate.
- Whether keeping the term through the level period still makes sense, since coverage does pay if a claim occurs.
For other Ameritas coverage, see selling an Ameritas whole life policy, an Ameritas universal life policy, or an Ameritas GUL policy, or browse the education center. To have a policy screened at no cost, send the cover page or call (305) 209-7183.
Frequently Asked Questions
Can term life insurance be sold at all?
Generally only if it is convertible to permanent coverage, because term by itself has no cash value and expires. Buyers purchase the converted policy, and conversion is usually coordinated with closing. A term policy with no conversion privilege is typically not sellable.
How do I find my conversion deadline?
Look in the contract under a provision titled Conversion or Conversion Privilege, which states a number of policy years, an attained age, or both. If you do not have the contract, call Ameritas policyholder service and ask for the exact last conversion date in writing.
I have several term policies bought at different times. Do they share a deadline?
No. Each policy has its own conversion window and its own face amount, so one layer may still be convertible while another has closed. Inventory all of them before concluding you have nothing to work with.
My term coverage is a rider on another policy. Does that change things?
Often yes. A rider is part of a base policy rather than a standalone contract, and its conversion rules can be shorter or more restrictive. Ask the carrier specifically whether your coverage is a policy or a rider and what the rider’s conversion terms are.
Will I have to pay the higher permanent premium while looking for offers?
Usually not. In most transactions the conversion is executed as part of closing and the buyer assumes premium payments from that point. Converting on your own initiative without a buyer lined up can leave you funding coverage you did not want.
Does converting require a medical exam?
A true conversion privilege allows the exchange without new medical underwriting, which is precisely what makes it valuable when health has declined. Confirm the specific terms with the carrier, since product rules vary.
What could a converted Ameritas term policy be worth?
The GAO market study (GAO-10-775) found sellers typically received about 10% to 35% of face value across the market. The converted policy’s premiums are subtracted by the buyer, and there is no surrender value to compare against — the alternative to selling is usually receiving nothing.
What should I send for a free review?
The policy cover page listing the insurer, policy number, face amount, and issue date, plus the conversion provision page if you have the contract. That is enough to screen the policy quickly, and you can call (305) 209-7183 first with questions.
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
- What Policies Qualify For Life Settlement
- Cash Surrender Value Life Insurance
- Education Center
- Sell My Ameritas Whole Life Policy
- Sell My Ameritas Universal Life Policy
- Sell My Ameritas Guaranteed Universal Policy
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.