Yes — an Erie Family Life term policy can be sold, but in almost every case it has to be converted to permanent coverage first, and the right to convert expires. That single sentence is the reason this page exists. Term insurance by itself has no cash value and, left alone, simply ends. What gives a term policy market value is the conversion privilege written into the contract: the right to exchange it for a permanent policy with no new medical exam.
Conversion privileges are use-it-or-lose-it. They typically expire at a stated age or after a stated number of policy years, whichever comes first, and once that date passes the policy becomes very difficult to monetize no matter how valuable it would otherwise be. People with serious health changes are exactly the people for whom conversion is most valuable and most often discovered too late.
This guide explains how the conversion route works with an Erie Family Life term policy, what to ask the service center this week, how a settlement is priced afterward, and when converting is not worth it. Pine Lake Life Solutions is independent and not affiliated with Erie Insurance.
In This Article
- First: Find Your Conversion Deadline
- Who Erie Family Life Is, and Who Services the Policy
- How Conversion Turns Term Into a Sellable Asset
- What the Secondary Market Looks For
- When Converting Is Not Worth It
- Documents and the Closing Steps
- Red Flags and Taxes
- Other Erie Family Life Policy Types and Next Steps
- Frequently Asked Questions
First: Find Your Conversion Deadline
Before anything else, call Erie Family Life’s policyholder service line — use the number on your most recent premium notice — and ask four questions in this order:
- Is my term policy still convertible, and what is the last date I can convert?
- Which permanent products can it convert into today?
- Can I convert part of the face amount rather than all of it?
- Is any evidence of insurability required?
Get the answers in writing. Conversion terms differ by product series and issue year, and the agent who sold the policy decades ago may no longer be with the agency. If the deadline is weeks away rather than years, treat it as urgent — a life settlement takes 60 to 120 days, but the conversion itself has to happen before the privilege lapses, and a conversion window that closes takes the policy’s market value with it.
Who Erie Family Life Is, and Who Services the Policy
Erie Family Life Insurance Company was formed in 1967 as the life company inside the Erie Insurance Group, an organization founded in Erie, Pennsylvania in 1925 and built primarily on auto and home insurance sold through independent agents. A great many Erie term policies were written as part of a household package rather than as a standalone purchase.
A corporate note worth knowing: Erie Family Life was previously owned in part by Erie Indemnity Company, the publicly traded management company, until Erie Indemnity sold its minority stake to Erie Insurance Exchange in 2006. Since then the life company has sat under the Exchange. Verify the current structure, the A.M. Best financial strength rating, and the service phone number on erieinsurance.com as of 2026 — the servicing contact is what matters for a conversion request and later for the change-of-ownership forms a settlement requires.
How Conversion Turns Term Into a Sellable Asset
Converting exchanges your term coverage for a permanent policy — typically universal life, guaranteed universal life, or whole life, depending on what the carrier offers at the time — without new underwriting. Your health does not have to qualify you again. That is the entire value: someone whose health has declined since issue can obtain permanent coverage they could never buy on the open market.
The new permanent policy has a much higher premium than the term policy did, because permanent coverage is priced to last for life. That premium is exactly what makes people reluctant to convert. But in a settlement scenario, the buyer takes over premium payments after closing, so the higher cost is not something you carry long-term.
Two practical points. First, many carriers allow partial conversion, which lets you convert only the portion that is likely to be sold. Second, sequencing matters: coordinate the conversion with the settlement review so you are not paying premiums on a large permanent policy any longer than necessary. Ask for the review before you convert, not after.
What the Secondary Market Looks For
Once converted, the policy is evaluated like any other permanent contract. The strongest candidates share a familiar profile: insured generally age 65 or older, or younger with a meaningful health change since the policy was issued; a death benefit of $100,000 or more; and a carrying cost that is reasonable relative to face amount.
Across the market, the GAO’s study (GAO-10-775) found sellers historically received roughly 10% to 35% of face value. Converted term can land anywhere in that band, and the health change since original underwriting is often the largest single factor — a policy priced at standard rates fifteen years ago on someone who has since developed significant conditions is precisely the situation the secondary market exists to value.
For the full screen, see what policies qualify for a life settlement.
| Term Policy Situation | Can It Be Sold? | What to Do First |
|---|---|---|
| Still convertible, insured 65+, face $100k+ | Usually yes, after conversion | Get a free review, then convert |
| Convertible, deadline within months | Yes, but time-critical | Confirm the deadline in writing today |
| Conversion privilege already expired | Rarely | Ask about renewal options; review anyway if health has changed |
| Face amount under $100,000 | Usually no | Do not convert for resale purposes |
| Coverage still needed by the household | Not advisable | Keep the term coverage in force |
| Insured terminally ill | Possibly, via viatical route | Ask about accelerated death benefit riders first |
When Converting Is Not Worth It
Converting is not automatically the right move, and no one should convert on the assumption that a sale will follow.
Skip it when the death benefit is small — under about $100,000 most buyers will not transact, and you would be paying permanent premiums for nothing. Skip it when the insured is in good health at a younger age, because a buyer’s expected holding period is long and offers on healthy 60-year-olds are frequently minimal or nonexistent. Skip it when the household still needs the term coverage and can afford it; keeping level term to the end of its period is often the cheapest protection you will ever have.
Also weigh simply renewing. Many term policies allow annual renewal past the level period at steeply increasing rates. That is rarely a long-term plan, but it can bridge a few months while a review is completed.
The honest ordering is: get a free review first, learn whether the policy is likely to attract an offer, and convert only if the answer justifies it.
Documents and the Closing Steps
For the initial free review, one page is enough: the policy cover page showing the issuing company, policy number, face amount, issue date, and term period. Add the conversion privilege details if you have them.
After conversion, pricing requires the new permanent policy’s in-force illustration on both current and guaranteed bases, the annual statement, and a HIPAA authorization so life expectancy can be estimated. Keep any medical release specific and revocable.
Closing runs through an absolute assignment — a change of owner and beneficiary recorded by Erie Family Life. Your funds sit in independent escrow until the carrier confirms the recorded change, and most states then provide a rescission period in which you can undo the sale. Expect 60 to 120 days from review to funding, plus whatever the conversion itself takes.
Red Flags and Taxes
Be cautious with anyone who urges you to convert immediately while guaranteeing an offer amount before underwriting is complete. Offers are not real until they are in writing and tied to completed life-expectancy work. Other warning signs: no independent escrow, an open-ended medical authorization, a same-day signature deadline, or an intermediary who will not disclose what they are paid. If a life settlement broker is involved, ask for gross and net figures side by side.
On taxes, the general framework treats proceeds up to cost basis as a return of premium, amounts above basis up to cash value as ordinary income, and the remainder as capital gain, with different rules for a certified terminal or chronic illness. Converted term usually carries little cash value, which simplifies the middle tier but not the analysis. Ask a CPA to apply the rules to your numbers.
Other Erie Family Life Policy Types and Next Steps
If you also hold permanent coverage from Erie, the decision framework is different for each type. Whole life offers a guaranteed surrender floor and possible dividends; universal life turns on rising cost-of-insurance charges; guaranteed universal life is priced off its no-lapse guarantee. See our guides to selling an Erie Family Life whole life policy, an Erie Family Life universal life policy, or an Erie Family Life GUL policy. Broader background is in our education center.
If your conversion deadline is near, do not wait. Send the policy cover page for a free, no-obligation review or call (305) 209-7183. Pine Lake Life Solutions is not affiliated with Erie Insurance or Erie Family Life Insurance Company.
Frequently Asked Questions
Can I sell a term policy without converting it?
Almost never. Term coverage expires and has no cash value, so buyers have nothing durable to purchase. The rare exception involves a viatical situation where the insured’s life expectancy is shorter than the remaining term period. In the typical case, the conversion privilege is what makes a term policy sellable.
How do I find out if my Erie term policy is still convertible?
Call Erie Family Life’s policyholder service line using the number on your most recent premium notice and ask for the conversion expiration date, the permanent products available, and whether partial conversion is allowed. Ask for the answer in writing. Conversion terms vary by product series and issue year.
Does converting require a medical exam?
Generally no. The point of a conversion privilege is that it lets you obtain permanent coverage without new evidence of insurability. That is what makes it so valuable to someone whose health has declined since the policy was issued. Confirm with the carrier, since some conversion options carry conditions.
Won’t the converted policy be much more expensive?
Yes, permanent coverage costs considerably more than term. In a settlement, the buyer assumes premium payments after closing, so the higher cost is not something you carry indefinitely. Still, coordinate timing so you are not funding a large permanent premium longer than necessary.
Should I convert first or get reviewed first?
Get reviewed first whenever the deadline allows it. A free review tells you whether the policy is likely to attract an offer before you commit to permanent premiums. If the conversion window is closing within weeks, that urgency may reverse the order, and you should say so up front.
What if my conversion privilege already expired?
Selling becomes unlikely, though not always impossible if the insured’s health has changed dramatically. Ask the carrier about renewal options past the level period and about any riders that provide access to benefits. A free review costs nothing and rules the question out quickly.
How much might a converted policy sell for?
The GAO’s market study found sellers historically received roughly 10% to 35% of face value. Where a converted term policy lands depends heavily on how much the insured’s health has changed since original underwriting, the death benefit size, and the premium required to keep the permanent policy in force.
How long does everything take?
Budget 60 to 120 days for the settlement process itself, plus the carrier’s processing time for the conversion. If your conversion deadline is close, the conversion has to be completed within the window regardless of where the settlement review stands.
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
- How It Works Policy Options
- Education Center
- Sell My Erie Family Life Whole Life Policy
- Sell My Erie Family Life Universal Life Policy
- Sell My Erie Family Life 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.