Yes — a Bankers Life term life policy can be sold in a life settlement if you and the policy qualify, and the carrier’s permission is not required; the buyer purchases the contract from you. But term comes with one condition that permanent policies do not have: in most cases the term policy has to be converted into permanent coverage first, and the right to convert expires on a deadline written into your contract.
That deadline is the entire story on this page. Term insurance has no cash value, so there is nothing to surrender and nothing for a buyer to hold once the level period ends. What a buyer can hold is the permanent policy your term contract lets you convert into — without a new medical exam. Once the conversion privilege closes, that door is gone for good, and it closes quietly. No one calls to remind you.
Below: how to find your own deadline, the narrow situations where term sells without converting, and the honest size screen that matters a lot for Bankers Life owners specifically. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Bankers Life and Casualty Company or CNO Financial Group. Education only — not legal, tax, or investment advice.
In This Article
- The Short Version: Convert First, Then Settle
- How Conversion Deadlines Expire Silently
- Finding Your Deadline in Your Own Paperwork
- When Term Sells Without Converting
- The Bankers Life Size Screen — Say It Plainly
- Running the Conversion Math Before You Convert
- Documents, Timing, and How to Start
- Frequently Asked Questions
The Short Version: Convert First, Then Settle
A life settlement buyer is purchasing a contract that will eventually pay a death benefit. Term insurance only pays if the insured dies inside the level period, and then it ends. That makes a plain term policy nearly worthless to a buyer late in its life — the one exception being an insured with a serious, documented health impairment and a life expectancy short enough to fall inside the remaining term.
So the normal sequence has two steps. First you exercise the conversion privilege in your term contract, turning it into a permanent policy — typically universal life or whole life offered by the carrier — with no new underwriting and no medical exam. Second, that permanent policy is sold in a life settlement. The buyer takes over the premiums and you receive a lump sum.
Neither step requires the insurance company’s approval in the sense people fear. Conversion is a right you already paid for. The sale is a transfer of property you own.
How Conversion Deadlines Expire Silently
Conversion privileges usually end in one of three ways, and your contract will use one or a combination of them:
- An attained-age cutoff. Conversion allowed until the insured reaches a stated age — 65, 70, and 75 are all common cutoffs across the industry.
- A duration cutoff. Conversion allowed only during the first several policy years, or only through the end of the level premium period.
- The earlier of the two. Many contracts stack both tests and end the privilege at whichever comes first.
Nothing dramatic happens on the deadline date. The premium notice looks the same. The policy stays in force. You simply lose the ability to convert, and with it the practical ability to sell. People discover this months or years later, which is why anyone thinking about a settlement on term coverage should verify the deadline this week, not eventually.
Finding Your Deadline in Your Own Paperwork
Start with the policy itself. Look for a provision titled “Conversion,” “Conversion Privilege,” or “Right to Exchange,” usually within the first several pages after the schedule page. It will state the last date or age at which conversion is allowed and which permanent products you may convert into.
If you cannot find the contract, call the service number on your premium notice and ask three specific questions: Is my conversion privilege still open? What is the last date I can convert? Which permanent policies am I eligible to convert into, and at what premium? Ask for the answer in writing. As of 2026, confirm all of this directly with the carrier — conversion terms vary by product series and by the year the policy was issued, and no general guide can tell you what your particular contract says.
| Your Term Situation | Can It Be Sold? | What to Do Next |
|---|---|---|
| Conversion privilege open, $100k+ face, insured 65+ | Usually yes, after converting | Confirm conversion terms in writing, then request a review |
| Conversion privilege expired, average health | Generally no | Compare keeping the coverage vs. letting it end |
| Conversion expired, serious health impairment, years left on term | Sometimes | Request a review and disclose the medical history early |
| Face amount under $100,000 | Generally no | Look at other options; settlement economics do not work |
| Group or employer term certificate | Not as group coverage | Ask about conversion or portability within the window |
When Term Sells Without Converting
There is a narrower path. If the insured has developed a serious health condition since the policy was issued, and the remaining level term period is long enough, a buyer may purchase the term policy as it stands. The logic is simple: if independent underwriters estimate a life expectancy that falls comfortably inside the remaining term, the contract has real expected value even without conversion.
These transactions do happen, but they are the exception rather than the rule, and they depend entirely on medical records rather than on anything about the policy. If the insured’s health has changed materially, say so at the outset of a review — it changes both the analysis and the timeline.
The general screen for what buyers look for is laid out in what policies qualify for a life settlement.
The Bankers Life Size Screen — Say It Plainly
Bankers Life and Casualty, founded in 1879 and headquartered in Chicago, is part of CNO Financial Group, the Carmel, Indiana company known as Conseco until its 2010 rename. Its business is built around the middle-income retiree: Medicare supplement, long-term care, annuities, and life insurance sold face-to-face by a captive career agency force out of branch offices.
That customer base means face amounts skew small. Final-expense and burial-sized coverage is common, and term written at $25,000 or $50,000 will not attract a settlement buyer no matter how healthy the conversion privilege is. The transaction costs of a settlement — underwriting, life-expectancy reports, legal work, escrow — are roughly the same on a small policy as on a large one. Pine Lake works with policies of $100,000 or more in death benefit. Check your face amount on the cover page before spending energy on conversion research.
A.M. Best has rated Bankers Life in the “A-” (Excellent) range in recent years; confirm the current 2026 rating with the carrier or A.M. Best directly.
Running the Conversion Math Before You Convert
Converted permanent coverage is not free. The premium on the new policy will be materially higher than what you have been paying for term, because it is priced at the insured’s current age for coverage that lasts for life. Two questions matter:
First, how long will you be paying that premium before the settlement closes? Usually a few months, but you should know the number. Second, does the converted policy carry a death benefit large enough to be worth a buyer’s time after conversion? Some carriers allow partial conversion, which lets you convert a portion of the face amount — useful for managing premium, but risky if it drops the death benefit below the practical settlement floor.
Do not convert on the assumption that a sale is guaranteed. Get the policy screened first, understand what the market is likely to do, and then convert with your eyes open.
Documents, Timing, and How to Start
For a free policy review, send the policy cover page — insurer, policy number, face amount, issue date. If the term policy also has a conversion rider or endorsement, include that page.
From there the file typically adds the full contract or a carrier letter confirming conversion terms, the quoted premium for the converted permanent policy, and a HIPAA authorization so independent underwriters can estimate life expectancy from medical records. Expect roughly 60 to 120 days end to end, and add time for the conversion itself, which is a separate carrier process with its own paperwork.
Published GAO market data (GAO-10-775) found settlement proceeds typically ran about 10% to 35% of face value across the market; for converted term the specific outcome depends heavily on age and health. To get started, send the cover page for a free, no-obligation review or call (305) 209-7183. Also see whether a life settlement is worth it and, if you also hold permanent Bankers Life coverage, our guide to selling a Bankers Life universal life policy.
Frequently Asked Questions
Can I sell a Bankers Life term policy without converting it?
Usually not. Term has no cash value and expires at the end of the level period, so buyers rarely want it as-is. The exception is an insured with a serious documented health condition and enough remaining term for the coverage to have real expected value. In every other case, conversion to permanent coverage comes first.
How do I know if my conversion privilege is still open?
Look in your contract for a provision titled Conversion or Right to Exchange, and read the age or duration limit it states. If you cannot locate the contract, call the service number on your premium notice and ask for the last conversion date in writing. Confirm this directly with the carrier in 2026, since terms vary by product series and issue year.
Does converting require a new medical exam?
No. The value of a conversion privilege is precisely that it lets you obtain permanent coverage without new underwriting, regardless of how the insured’s health has changed. That is why the deadline matters so much — once it passes, health can no longer be worked around.
Will the converted policy cost more?
Yes, usually significantly more, because permanent coverage is priced at the insured’s current age and is designed to last for life. Get the converted premium quoted before you convert, and understand how many months you would be paying it before a sale could close.
My Bankers Life term policy is $40,000. Is that sellable?
Realistically no. Settlement transaction costs do not scale down with policy size, so buyers generally look for $100,000 or more in death benefit. For smaller policies the practical choices are keeping the coverage, letting it end at the term’s expiration, or asking the carrier about any conversion to a small paid-up amount.
Do I need Bankers Life’s approval to sell?
No. A policy is personal property, and the owner’s right to transfer it was confirmed by the Supreme Court in Grigsby v. Russell in 1911. Conversion is a contractual right you already hold. The carrier records the new owner after closing but does not approve or block the sale.
How long does convert-then-settle take?
Budget 60 to 120 days for the settlement itself, plus additional time for the conversion, which is a separate carrier process. Medical record retrieval and the carrier’s paperwork are the usual bottlenecks. Ask for realistic dates at each step rather than assuming.
Is Pine Lake affiliated with Bankers Life?
No. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Bankers Life and Casualty Company or CNO Financial Group. This page is educational and is not legal, tax, or investment advice. To see whether your policy is a candidate, send the cover page for a free review or call (305) 209-7183.
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Related Reading
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- Life Settlement Vs Surrender
- Education Center
- Sell My Bankers Life Universal Life Policy
- Sell My Bankers Life Group Life 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.