Yes — a term life policy can be sold in a life settlement, but almost always only after it is converted to permanent coverage, and only while the conversion privilege is still open. The policy is your property and a buyer purchases the contract from you, so the insurance company’s permission is not required and the carrier is not a party to the decision. What the carrier does control is the conversion right written into your contract — and that right expires on a schedule most people never notice.
EMC National Life was the Des Moines, Iowa life operation tied to Employers Mutual Casualty Company, a Des Moines property-casualty insurer founded in 1911. The life block has since been sold and renamed, so 2026 statements often arrive under an unfamiliar company name. Group and worksite coverage made up a real share of the book, which matters here: a group term certificate follows different rules than an individual term policy.
Read this page with your policy in hand. Everything below turns on two facts you can find in the contract: whether it is convertible, and until when. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of EMC National Life or its successor.
In This Article
- Term Has No Cash Value — So Conversion Is the Only Door
- Find the Conversion Deadline in Your Contract
- Partial Conversion Is Usually Allowed
- Group Term Certificates Follow Different Rules
- What the Converted Policy Has to Look Like
- Sequence and Timing: Two Clocks at Once
- What You Might Receive — and What You Won’t
- If Conversion Has Already Expired
- Frequently Asked Questions
Term Has No Cash Value — So Conversion Is the Only Door
Term insurance is pure death benefit for a set number of years. There is no account, no cash value, and nothing to surrender. If you stop paying, coverage ends and you receive nothing.
That means a settlement on a term policy works in two moves. First you exercise the conversion privilege, exchanging the term coverage for a permanent policy issued by the same carrier — typically without new medical underwriting. Then the permanent policy, which does have long-term value, is the asset that can be sold. Buyers do not purchase term coverage that will expire in a few years, because the death benefit will likely never be paid.
The exception is narrow: if the insured has a serious health impairment and the term policy still has a long level period remaining, a buyer may occasionally look at it. That is uncommon and it is not something to count on.
Find the Conversion Deadline in Your Contract
Conversion privileges expire, and the deadline is written one of two ways:
- By age. Conversion allowed until the insured’s 65th or 70th birthday, for example.
- By duration. Conversion allowed during the first 10 years of the policy, or through the end of the level premium period, whichever comes first.
Whichever applies, no one sends a reminder. The right simply lapses, quietly, and after that the only way to get permanent coverage is to apply fresh with full medical underwriting at your current age — which for many people in their late 60s or 70s means the coverage is effectively unobtainable.
Call the servicing company, give them the policy number, and ask three questions in writing: Is this policy convertible? Until what date or age? Which permanent products can it convert into as of 2026?
Partial Conversion Is Usually Allowed
Most convertible term contracts let you convert all or part of the face amount. That flexibility matters when the conversion premium is steep.
Say you hold $500,000 of term. Converting the whole thing might produce a permanent premium that is unaffordable. Converting $250,000 produces a smaller, more manageable policy — and $250,000 is still comfortably above the $100,000 death benefit threshold buyers generally look for. Ask whether partial conversion is permitted and what the minimum converted face amount is.
Also ask which products are on the conversion menu. Guaranteed universal life, when available, is often the most efficient landing spot because it is priced as pure death benefit with very little cash value — see our page on selling an EMC National guaranteed universal life policy.
Group Term Certificates Follow Different Rules
If your coverage came through an employer or association, you likely hold a certificate rather than an individual policy, and you cannot sell it as-is because the master contract belongs to the plan sponsor.
Group conversion windows are far shorter than individual ones — commonly about 31 days from the date coverage ends. If you are retiring or leaving a job with group term in place, that clock starts immediately and it does not restart. Details are on our page about selling an EMC National group life policy.
| Question to Ask the Carrier | Why It Matters | Get It In |
|---|---|---|
| Is this term policy convertible? | Non-convertible term is rarely sellable | Writing |
| What is the conversion deadline (age or duration)? | The right expires with no reminder | Writing |
| Which permanent products can it convert into? | Determines premium and buyer appetite | Writing |
| Is partial conversion allowed, and what is the minimum? | Keeps the premium affordable | Writing |
| Does the original issue date carry over? | Affects contestability status | Writing |
| What is the conversion premium at my current age? | A buyer inherits this cost | Writing |
What the Converted Policy Has to Look Like
Once converted, the policy is judged like any other settlement candidate. Buyers generally look for an insured roughly 65 or older, or younger with significant health conditions; a death benefit of $100,000 or more; a contract past the contestability period; and a premium level that makes economic sense to carry.
Conversion carries the original policy’s issue date and contestability status forward in most contracts — confirm that with the carrier, because it can matter. The full qualification screen is on our page covering what policies qualify for a life settlement.
Sequence and Timing: Two Clocks at Once
The conversion clock is unforgiving; the settlement clock is slow. A settlement runs 60 to 120 days from application to funded payment, so if your conversion deadline is three weeks out, you convert first and evaluate second.
A workable sequence: confirm the conversion deadline in writing; request a free policy review using the term policy’s cover page so you know whether a settlement is realistic at all; get conversion premium quotes for full and partial amounts; convert inside the window; request the in-force illustration on the new permanent policy; then proceed with the review. See what an in-force illustration is for what to ask for.
Do not stop paying the term premium while you are deciding. Lapsed coverage cannot be converted or sold.
What You Might Receive — and What You Won’t
Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of the death benefit, and averages several times cash surrender value. Converted term policies sit inside that same market; a converted policy has little or no cash value, so the comparison is not really settlement versus surrender — it is settlement versus letting valuable coverage expire for nothing.
What you should not expect: an offer that approaches the face amount, or an offer on a small policy. Under $100,000 of death benefit, the transaction costs generally do not work. Our page on whether a life settlement is worth it lays out the honest cases on both sides.
If Conversion Has Already Expired
Sometimes the window is gone. That is a real answer and it is better to hear it in a day than in a month.
Options to discuss with your own licensed advisors: apply for new individual coverage if you are insurable; check whether the policy has a terminal illness or accelerated death benefit rider; look at whether a spouse’s or association’s coverage offers a conversion right you have not used; or accept that the term policy will run to the end of its level period and plan around it. Nothing on this page is legal, tax, or investment advice.
To find out quickly where your policy stands, send the policy cover page for a free, no-obligation review, or call (305) 209-7183. If you hold other coverage from the same carrier, our guide to selling an EMC National universal life policy covers that case.
Frequently Asked Questions
Can I sell a term life policy without converting it?
Usually not. Term has no cash value and expires at the end of its level period, so buyers rarely have a reason to purchase it. The exception is a policy with a long remaining term on an insured with a serious health impairment, which is uncommon. In most cases conversion comes first.
How do I find out if my policy is still convertible?
Look for a “Conversion Privilege” or “Right to Convert” provision in the contract, then confirm with the servicing company by phone and ask for the answer in writing. Give them the policy number and ask for the exact deadline, the products available, and whether partial conversion is allowed.
Does the carrier have to approve a sale?
No. Once you own a permanent policy, it is your property and the buyer purchases the contract from you. The carrier simply records the ownership and beneficiary change after closing. Pine Lake is not affiliated with, endorsed by, or acting on behalf of the carrier.
Do I have to convert the entire face amount?
Usually not. Most convertible term contracts permit partial conversion, which lets you keep the premium manageable while still ending up with a policy above the $100,000 threshold buyers generally look for. Ask the carrier for the minimum converted face amount and quotes at a few different levels.
Will converting require a new medical exam?
Typically no — that is the point of a conversion privilege. The coverage converts at your original underwriting class without new evidence of insurability, though the premium reflects your current age. Confirm the specific terms of your contract with the carrier as of 2026.
My statement lists a company I’ve never heard of. What happened?
Blocks of policies change ownership and companies get renamed. Your contract terms and conversion rights are unchanged; only the servicing entity differs. Call the number on the most recent statement to confirm who administers the policy now and where conversion requests should go.
Should I convert before or after getting a policy review?
If the deadline is close, convert first — you can always evaluate afterward, but you cannot reopen an expired window. If you have time, get a free review from the cover page first so you know whether a settlement is realistic before you commit to a higher premium.
What if my conversion window already closed?
Then the term policy is very unlikely to be sellable, and the practical options are applying for new coverage if you are insurable, checking for accelerated death benefit riders, or planning around the coverage ending. Talk with your own licensed advisors, and call (305) 209-7183 if you want a second read on the policy.
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Related Reading
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Sell My Emc National Guaranteed Universal Policy
- Sell My Emc National Group Life Policy
- Sell My Emc National Universal 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.