Yes — a term life policy can be sold in a life settlement if you and the policy qualify, because the policy is your property and the buyer purchases the contract from you; the carrier’s permission is not required and the carrier is not a party to your decision. With term there is nearly always a step first: the coverage must usually still be convertible to permanent insurance, and that privilege has to still be open.
Everlake Life Insurance Company is the former Allstate Life Insurance Company, which Allstate agreed to sell in 2021 to a Blackstone-backed buyer and which was then renamed. Term owners from that block face a specific complication most articles skip: when a company stops writing new business, the menu of permanent products available for conversion can be limited, and the conversion provision itself becomes something you have to confirm rather than assume.
Everything here comes down to one phone call and one deadline. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Everlake Life Insurance Company or Allstate. Educational only — not legal, tax, or investment advice.
In This Article
- Term Has No Cash Value — Which Changes the Whole Question
- The Conversion Privilege, and Why Run-Off Makes It Worth Verifying
- Verify the Servicing Details Too
- Two Routes From Term to a Settlement
- Health Is the Variable That Flips the Math
- What Conversion Costs, and Sizing It Correctly
- Documents, Timing, and Realistic Expectations
- Frequently Asked Questions
Term Has No Cash Value — Which Changes the Whole Question
Whole life and universal life accumulate value inside the contract. Term does not. You pay for pure protection over a level period — 10, 15, 20, or 30 years — and at the end there is no account, no surrender check, and no non-forfeiture option.
Two consequences follow. First, there is nothing to compare a settlement offer against: your alternative is usually letting the coverage end and receiving nothing. Second, once the level period ends, the premium typically converts to an annually increasing rate that climbs quickly, which is what pushes most people to drop the policy rather than any decision to give up coverage.
So the practical question is never “should I surrender or sell.” It is “can this coverage be turned into something durable before the window closes.”
The Conversion Privilege, and Why Run-Off Makes It Worth Verifying
A convertible term policy lets you exchange it for a permanent policy from the same insurer without new medical underwriting, at rates based on your original underwriting class. For someone whose health has declined, that is the most valuable feature in the contract, because new coverage would be expensive or simply unavailable.
Conversion deadlines are written as an age limit (convertible until the insured reaches a stated age, often somewhere in the 65 to 70 range depending on the product), a duration limit (a stated number of policy years or the end of the level period), or both. They expire silently. No letter, no call, no final notice.
The closed-block wrinkle: a company in run-off is not launching new permanent products, so the permanent plans available for conversion can be a short list, and the terms of what is offered can change over time. Do not assume anything about what your policy converts into. Call the service number on your premium notice and ask, specifically: is the conversion privilege still available on this policy, what is the exact deadline, what permanent products may I convert into today, is partial conversion allowed, and what would the premium be at my current age. Ask for the answers in writing and note the date.
Verify the Servicing Details Too
While you have the service center on the line, confirm the rest of the administrative picture as of 2026: the current servicing entity for your specific policy, the correct in-force service phone number, where premium payments should be sent, and the mailing address for conversion elections. If financial strength factors into your decision, verify the current A.M. Best rating yourself rather than relying on a web page, including this one.
One thing not to worry about: the name change does not weaken your contract. Guarantees and provisions are contract terms, and an acquiring company steps into the same obligations. Every state also maintains a life and health insurance guaranty association providing statutory protection up to state-specific limits, though coverage amounts and rules differ by state — check your own state’s terms.
What does change is speed. Expect a service center rather than a local agent, and expect requests to take longer. When a conversion deadline is running, that lag is the real risk. Send elections by a method that produces proof of delivery, and follow up until you have written confirmation of receipt.
| Ask the Service Center | Why It Matters |
|---|---|
| Is the conversion privilege still available on this policy? | Determines whether any settlement path exists |
| What is the exact conversion deadline? | Age-based, duration-based, or both; it expires without notice |
| Which permanent products can I convert into today? | A run-off carrier’s conversion menu can be limited |
| Is partial conversion allowed, and what is the minimum? | Controls premium, but watch the $100,000 threshold |
| What is the premium at my current age? | Sets the cost of carrying the policy through closing |
| Where do I send the election, and can you confirm receipt? | Proof of delivery protects you against a missed deadline |
| Who services this policy and where do premiums go? | Prevents a lapse caused by payments sent to the wrong place |
Two Routes From Term to a Settlement
Route one — convert, then sell. You elect conversion, the insurer issues a permanent policy, and that policy is then evaluated for a settlement. This is the common path. You carry the higher permanent premium during the process, which typically runs 60 to 120 days.
Route two — sell the convertible term directly. In some transactions a buyer purchases the term policy and performs the conversion afterward at its own expense. This depends entirely on the conversion provision being clearly open and verifiable, and it is less common. It is worth asking about, because it can avoid your paying an expensive permanent premium for several months.
What does not work: expired conversion privilege plus good health. There is nothing durable to buy. If that is your situation, a reviewer should tell you within days rather than putting you through weeks of paperwork.
Health Is the Variable That Flips the Math
When you bought the policy, good health lowered your premium. In the secondary market the relationship inverts: a buyer prices the policy on how long it expects to pay premiums before the death benefit is paid, so a serious health impairment that developed after issue generally increases the offer.
That is also why the conversion privilege matters most to exactly the people most likely to have let it slip — someone dealing with a diagnosis is not thinking about a provision on page nine of a contract from 1998. If health has changed materially, move the conversion question to the top of the list this week.
Life expectancy is assessed by independent medical underwriters using records, which requires a HIPAA authorization. Make sure any authorization you sign names who receives records and is revocable.
What Conversion Costs, and Sizing It Correctly
Expect a large premium increase. Term is cheap because it is temporary; permanent coverage at your current age, guaranteed for life, costs several times more. That is a different product, not a penalty.
Two ways to manage it. Partial conversion, if your contract allows, converts only part of the death benefit and keeps the premium lower — but if a settlement is the goal, converting below $100,000 will likely put the policy outside what buyers consider, so size the conversion deliberately. Timing also matters, because permanent rates are set by attained age; converting before an age change can reduce the cost.
If the goal is a settlement, you generally only need to carry the converted policy through closing. Budget for a few months of the higher premium and do not let anything lapse mid-process — a lapse ends the transaction.
Documents, Timing, and Realistic Expectations
To start a free review: the policy cover page — insurer, policy number, face amount, issue date. That alone is enough for someone to tell you whether this is worth pursuing.
For a full evaluation: written confirmation of the conversion deadline and available products; the current premium notice; the in-force illustration on the converted permanent policy once issued (see what an in-force illustration is); a HIPAA authorization; and medical records.
Then: conversion election and issue over a few weeks; documentation two to four weeks; written offers, with gross and net-of-commission figures if a broker is involved; contracts with funds held by an independent escrow agent until the carrier records the ownership change; then a state rescission window. Total, roughly 60 to 120 days plus conversion time.
On value: because term has no cash value, there is no surrender comparison. Federal research on the market (GAO-10-775) found sellers typically received about 10% to 35% of face value; where a policy lands depends on the insured’s age and health, the death benefit, and the premium on the converted permanent contract. Buyers generally want $100,000 or more. See what policies qualify and is a life settlement worth it.
Settlement proceeds can have income tax consequences and can affect needs-based benefit eligibility including Medicaid — consult your own tax advisor, attorney, or benefits counselor. For other Everlake coverage, see selling an Everlake whole life policy or an Everlake universal life policy. Free policy review: send the cover page or call (305) 209-7183.
Frequently Asked Questions
Can I sell a term policy that has no cash value?
Usually only if it is still convertible to permanent coverage, or if the insured has a significant health impairment that a buyer will consider. Term with an expired conversion privilege and no impairment generally has no settlement market, because the coverage will simply end on a known date.
How do I find out whether my policy is still convertible?
Read the conversion provision in your contract, then confirm it with the service center in writing. Ask for the exact deadline, the permanent products available for conversion today, whether partial conversion is allowed, and the premium at your current age. Deadlines expire with no notice at all.
Does a run-off company still allow conversions?
That depends on the contract and on what the company currently offers. A carrier no longer writing new business may have a limited menu of permanent products available for conversion, so this is something to verify rather than assume. Get the answer in writing and note the date you received it.
Why does my policy say Allstate when my statement says Everlake?
Everlake Life Insurance Company is the former Allstate Life Insurance Company, which Allstate agreed to sell in 2021 to a Blackstone-backed buyer, after which it was renamed. Your contract terms are unchanged. Confirm the current servicing entity, phone number, and premium mailing address as of 2026.
Will I need a medical exam to convert?
Typically no. A conversion privilege lets you exchange term for permanent coverage without new evidence of insurability, at rates based on your original underwriting class. That is precisely what makes it valuable to someone whose health has declined since the policy was issued.
Does Everlake have to approve a sale?
No. Once you own an individual permanent policy, the buyer purchases the contract from you and the carrier records the new owner and beneficiary at closing. Its permission is not required and it is not a party to the decision. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Everlake or Allstate.
How much could a converted term policy sell for?
Federal research on the market (GAO-10-775) found sellers typically received about 10% to 35% of face value. Because term has no cash value, the practical alternative is usually letting the coverage end for nothing. Buyers generally look for a death benefit of $100,000 or more.
Should I convert first or ask for a review first?
Do both at once, but never let the deadline pass while waiting. A free review takes only the policy cover page and can be answered in days. If the deadline is close, elect conversion to preserve the asset and let the review follow.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Education Center
- Sell My Everlake Life Whole Life Policy
- Sell My Everlake Life 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.