Yes — a term life policy can be sold, including a Delaware Life term policy, when the policyholder and the policy qualify; the buyer purchases the contract from you and the insurer’s permission is not needed. Term carries one condition the permanent policy types do not: in nearly every case the policy has to still be convertible into permanent coverage. That right has an expiration date, no one sends a reminder, and once it passes there is generally nothing left to sell.
So treat this as a deadline question, not a philosophical one. Find your conversion date first. Everything else follows from it.
Delaware Life was formed in 2013 when investors affiliated with Guggenheim acquired Sun Life Financial’s U.S. annuity and life business, and the company is associated with the Group 1001 family (verify current ownership and A.M. Best rating with the carrier as of 2026). Policies written by Sun Life in the U.S. before 2013 are often serviced by Delaware Life today, which is why the name on your notices may not match the name on your policy. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Delaware Life, Sun Life Financial, or Group 1001.
In This Article
The Three-Question Test
Before spending time on anything else, answer three questions. If you cannot answer them from your paperwork, call the service number on your most recent premium notice and ask.
- Is the policy still in force and paid to date? A lapsed term policy is simply gone. There is no cash value to recover and nothing to sell.
- Is the conversion privilege still open, and until what date? This is the single most important fact on this page.
- Is the death benefit $100,000 or more? Below that, the fixed cost of underwriting and closing a case usually makes a settlement impractical no matter how good the other answers are.
Three yeses and you have a real conversation ahead. A no on the second or third usually ends it, with one exception covered further down.
Why Term Cannot Be Sold As Term
Term life insurance is pure rented protection. You pay a level premium for a set period — ten, fifteen, twenty, thirty years — and if the insured dies during that period the death benefit is paid. Survive the period and the coverage ends, or continues at annually increasing renewal rates that become punishing very quickly. There is no cash value at any point.
A settlement buyer is purchasing a future death benefit and agreeing to fund it. A contract that expires on a known date, or whose cost explodes after that date, does not deliver one dependably. That is why buyers essentially never purchase term as term. It is a feature of the product, not a judgment about any insurer.
The bridge is the conversion privilege: a contractual right to exchange the term policy for a permanent policy from the same insurer without new medical underwriting. Health does not matter to the exchange. That is what makes it valuable — a person who could never buy new coverage today can still convert what they already hold.
Where the Deadline Hides
Conversion rights are limited by age, by duration, or by both:
- By attained age — the right ends at a stated age, often somewhere in the 65 to 70 range, though it varies by contract and era.
- By policy duration — the right ends after a set number of years, or at the end of the level premium period, whichever comes first.
Find the provision in your policy document; it is usually a short paragraph headed “Conversion,” “Exchange Privilege,” or similar. If you no longer have the document, request a copy from the service center and ask them plainly: What is the last date I may convert this policy, and which permanent products is it convertible into? Ask for the answer in writing and dated.
Two extra questions worth asking on a legacy block: whether the original conversion product menu still exists, and what it has been replaced with. Companies servicing older blocks may offer a narrower set of permanent products in 2026 than existed when the policy was sold. That does not eliminate the right, but it can change the economics.
| Question to Ask the Service Center | Why It Matters |
|---|---|
| What is the last date I may convert this policy? | The right expires silently; everything depends on this date |
| Which permanent products is it convertible into? | Legacy blocks may offer a narrower menu in 2026 |
| Is partial conversion allowed, and what is the minimum? | Converting part of the face amount can cut the premium sharply |
| Does conversion keep my original rate class? | Critical if your health has declined since issue |
| What is the premium at each conversion amount? | Tells you the real cost before you commit |
| Is the policy in force and paid to date? | A lapsed term policy cannot be sold |
Partial Conversion — the Underused Option
Conversion premiums shock people. Your term rate was priced for a healthy person at the age you bought it; the permanent replacement is priced at your current age on a permanent chassis. Multiples of three, five, or more are ordinary.
Many contracts allow partial conversion, and it is worth asking about specifically. Suppose you hold $500,000 of term. Converting the entire amount might produce a permanent premium you cannot justify. Converting $250,000 could cut that cost substantially while still producing a policy comfortably above the $100,000 threshold buyers work with. The unconverted portion simply continues as term until it expires.
Ask for: the minimum convertible face amount, the premium at several conversion amounts, and whether any riders carry over. Then get a free policy review before you convert, so you know whether the resulting policy is likely to attract offers. Paying permanent premiums on a policy the market will not buy is the most common and most avoidable mistake in term settlements.
Return-of-Premium and Other Term Variants
Not all term is identical, and a couple of variants change the calculus.
Return-of-premium term refunds some or all of the premiums paid if the insured outlives the level period. If you hold one of these, you have a scheduled future value that a straight term policy lacks — and surrendering early typically forfeits most of it. Find the surrender value schedule in your contract before making any move.
Annually renewable term continues past the level period at rates that climb every year. It stays in force as long as you pay, which technically preserves a death benefit, but the escalating cost usually makes it uneconomic for a buyer.
Group term converted to individual term is still term, with all the same limitations. Portability is not conversion.
In every case, the question a buyer asks is the same: what does it cost to keep this death benefit alive, and for how long is it guaranteed?
The Health Exception
Settlement pricing turns on life expectancy. When the insured has a serious medical condition, life expectancy shortens and the policy becomes materially more valuable to a buyer. That can justify conversion premiums that would look unreasonable for a healthy insured, and it occasionally makes a term case viable when the ordinary math says no.
Where illness is terminal or chronic, the transaction may fall under viatical settlement rules, which differ from ordinary life settlements in several respects — including, in some circumstances, federal tax treatment. That is a discussion for a CPA or tax attorney who knows your situation. Nothing here is tax or legal advice, and a web page cannot tell you which category you fall into.
Timeline, Protections, and Next Steps
Term cases have two clocks. The conversion deadline is fixed and unforgiving. The settlement process runs roughly 60 to 120 days from application to funded payment, and conversion paperwork plus policy issue adds weeks on top of that.
Work backward. If your deadline is months away, get a free review and a conversion quote in the same week so the tracks run in parallel. If it is weeks away, treat it as urgent. Keep paying the term premium throughout — a lapse ends everything.
Standard protections once an offer arrives: get it in writing, insist on an independent escrow agent releasing funds only after the insurer confirms the ownership change, require any broker to disclose compensation as gross and net, and note your state’s rescission window after funding.
Realistic expectations matter here. Most term policies never become settlements — the right lapsed, the face amount is too small, or the insured is healthy with a long life expectancy. But since term has no cash value, there is no surrender alternative to weigh; when it does work, the federal GAO’s market study (GAO-10-775) found sellers typically received about 10% to 35% of face value on a policy that would otherwise have paid nothing.
Start at what policies qualify for a life settlement, weigh it at is a life settlement worth it, or browse the education center. If you hold permanent Delaware Life coverage as well, see selling a Delaware Life universal life policy or a Delaware Life whole life policy. For a free, no-obligation review, send the policy cover page or call (305) 209-7183. Education only — not legal, tax, or investment advice, and not an offer to purchase any policy.
Frequently Asked Questions
Can a term life policy really be sold?
Yes, but almost always only if it can still be converted to permanent coverage first. Buyers purchase a future death benefit, and coverage that expires on a set date does not provide one reliably. Once converted, the resulting permanent policy is evaluated like any other candidate.
How do I find my conversion deadline?
Look for the conversion or exchange provision in your policy document, which states the final attained age or policy year. If you do not have the document, call the service number on your most recent premium notice and request the last conversion date in writing. Confirm it as of 2026 rather than relying on what an agent said years ago.
Will converting require a medical exam?
Typically no. A conversion privilege generally allows the exchange without new evidence of insurability, usually preserving your original rate class. That is exactly why the right is valuable to someone whose health has declined.
Can I convert only part of my term policy?
Many contracts allow partial conversion, which lowers the permanent premium while still producing a policy large enough to interest buyers. Ask the service center for the minimum convertible amount and premiums at several conversion levels. Not every contract permits it.
My policy was issued by Sun Life. Who do I contact now?
Use the service number on your most recent premium notice. Delaware Life was formed in 2013 when investors affiliated with Guggenheim acquired Sun Life Financial’s U.S. annuity and life business, so many pre-2013 U.S. policies are administered by Delaware Life today. Your contract terms, including conversion rights, are unchanged.
What if my conversion window already closed?
In most cases there is nothing to sell, because the policy will expire without value. The exception is an insured with a serious health impairment and substantial time left in the level term period, which occasionally still draws interest. A free review will give you a clear answer in days.
I have return-of-premium term. Does that change things?
It can. Return-of-premium term refunds some or all premiums if the insured outlives the level period, so there is a scheduled future value a standard term policy lacks, and surrendering early usually forfeits most of it. Find the surrender value schedule in your contract before making any decision.
How much total time should I allow?
Conversion paperwork and policy issue generally take a few weeks after you file within the window, and the settlement process itself runs about 60 to 120 days from application to funded payment. Start both tracks together if your deadline is close, and keep the term premium paid throughout.
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
- Is A Life Settlement Worth It
- Education Center
- How It Works Policy Options
- Sell My Delaware Life Universal Life Policy
- Sell My Delaware Life Whole 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.