Yes — a Farm Bureau term life policy can usually be sold, but only after it is converted to permanent coverage, and the right to convert expires on a date already fixed in your contract. Term insurance on its own has no cash value and simply ends when the level period runs out. What makes it sellable is the conversion privilege: the contractual right to exchange it for a permanent policy without new medical underwriting.
That privilege is the most valuable thing in a term contract and the one most often lost by inattention. Conversion rights generally end at a stated attained age or after a stated number of policy years, whichever comes first. The people for whom conversion is worth the most — insureds whose health has changed significantly since the policy was issued — are also the ones most likely to discover the deadline after it has passed.
One more thing to settle up front: check which company issued the policy. Farm Bureau Life Insurance Company of West Des Moines, Iowa, Southern Farm Bureau Life Insurance Company of Jackson, Mississippi, and several state affiliates are separate insurers sharing a name. Pine Lake Life Solutions is independent and not affiliated with any of them.
In This Article
- Call the Issuing Company and Ask These Four Questions
- Which Farm Bureau Insurer Actually Holds Your Contract
- How Conversion Creates a Sellable Asset
- What the Secondary Market Looks For After Conversion
- When You Should Not Convert
- Documents, Timing, and How Closing Works
- Red Flags, Taxes, and Medicaid Timing
- Other Farm Bureau Policy Types and Next Steps
- Frequently Asked Questions
Call the Issuing Company and Ask These Four Questions
Do this before you read anything else on this page. Find the issuing company’s name on your cover page, then call the number printed on your most recent premium notice and ask:
- Is my term policy still convertible, and what is the final date I may convert?
- Which permanent products can it convert into right now?
- May I convert only part of the face amount?
- Is any evidence of insurability required for the conversion?
Ask for the answers in writing. Conversion terms vary by product series and issue year, and the agent who wrote the policy years ago may be long retired. If the deadline is weeks away rather than years, treat that as the controlling fact — a settlement review takes 60 to 120 days, but the conversion itself must be completed inside the window or the policy’s market value disappears with it.
Which Farm Bureau Insurer Actually Holds Your Contract
Farm Bureau life insurance is written through a federation model. State and regional Farm Bureau organizations have their own affiliated life companies, legally and financially separate from one another. The Iowa-based Farm Bureau Life Insurance Company, operating under the Farm Bureau Financial Services brand, is not the same insurer as Southern Farm Bureau Life in Mississippi, or Tennessee, Kentucky, and Alabama’s state-affiliated life companies.
For Iowa policyholders, one corporate note: FBL Financial Group, the parent of Farm Bureau Life, traded on the New York Stock Exchange under the ticker FFG until 2021, when Farm Bureau Property & Casualty Insurance Company purchased the outstanding public shares and took the company private. That transaction involved shareholders, not policyholders. No stock or cash was distributed to policyholders, and no coverage terms changed.
Verify the current servicing company, whether it is still issuing new individual life coverage, and its A.M. Best financial strength rating as of 2026 — directly with the carrier and at ambest.com.
How Conversion Creates a Sellable Asset
Conversion exchanges term coverage for a permanent policy — typically universal life, guaranteed universal life, or whole life, depending on what the carrier offers at the time — with no new medical exam and no new health questions. That is the whole value. Someone who could not qualify for new coverage at any price can still obtain permanent insurance through a conversion right they already paid for.
The catch is cost. Permanent premiums are far higher than term premiums, because permanent coverage is priced to last a lifetime. In a settlement scenario, the buyer assumes those premiums after closing, so you are not carrying the higher cost indefinitely — but you may carry it for a few months while the transaction is completed.
Two practical moves. Ask whether partial conversion is allowed, so you convert only the portion likely to be sold. And sequence it correctly: request a free settlement review before converting, so you know whether an offer is realistic, unless the deadline forces your hand.
What the Secondary Market Looks For After Conversion
Once converted, the policy is evaluated like any other permanent contract. Buyers price the expected holding period, the premium required to keep the policy in force, and the death benefit.
Favorable: an insured generally 65 or older, or younger with substantial health changes since original underwriting; a death benefit of $100,000 or more; a manageable premium relative to face amount. Unfavorable: a small face amount, an insured in good health with a long expected holding period, or a converted policy whose premium is unusually heavy.
Across the market, the GAO’s study (GAO-10-775) found sellers historically received approximately 10% to 35% of face value. Converted term policies can land anywhere in that band, and the health change since issue is frequently the single largest driver. The complete screening criteria are in what policies qualify for a life settlement.
| Your Term Situation | Sellable? | First Step |
|---|---|---|
| Convertible, insured 65+, face $100k or more | Usually yes, after conversion | Free review, then convert |
| Convertible but deadline is within months | Yes, on a tight clock | Get the deadline confirmed in writing today |
| Conversion right already expired | Rarely | Ask about renewal terms; review anyway if health changed |
| Face amount below $100,000 | Usually no | Do not convert expecting a sale |
| Insured healthy and under 65 | Unlikely | Keep the term coverage in force |
| Household still relies on the coverage | Not advisable | Keep the policy |
When You Should Not Convert
No one should convert on the assumption that a sale will follow. Honest cases for leaving the term policy alone:
The face amount is small. Under about $100,000, most buyers will not transact, and converting means paying permanent premiums for a policy nobody will purchase.
The insured is healthy and relatively young. A long expected holding period usually produces minimal offers or none. Converting in that situation is an expensive gamble.
The household still needs the coverage. Level term you already own is generally the cheapest protection available. If a spouse or dependent is relying on it and you can afford the premium, keep it.
A simpler option exists. If the insured is terminally ill and the policy carries an accelerated death benefit rider, that route is often faster and less complicated than any sale. Ask the carrier before doing anything else.
The right order is: free review first, decision second, conversion only if the numbers justify it. Our policy options overview compares the alternatives side by side.
Documents, Timing, and How Closing Works
For the free review, one page suffices: the cover page showing issuer, policy number, face amount, issue date, and term period. Add whatever the carrier told you in writing about the conversion deadline.
After conversion, pricing requires the new permanent policy’s in-force illustration on current and guaranteed bases, a current values statement, and a HIPAA authorization so life expectancy can be estimated. Keep the medical release specific and revocable.
Closing runs through an absolute assignment — a change of owner and beneficiary recorded by the issuing company. Ask for its forms in advance, including notarization and trust requirements. Funds go into independent escrow before ownership transfers, escrow releases only after the carrier confirms the change, and most states then provide a rescission period to unwind the sale. Budget 60 to 120 days for the settlement, plus carrier processing time for the conversion itself.
Red Flags, Taxes, and Medicaid Timing
Be very careful with anyone who pushes you to convert immediately while promising a specific offer amount before life-expectancy work is complete. Offers are not real until they are written and underwritten. Other warning signs: no escrow agent, an open-ended medical authorization, a same-day signature deadline, or an intermediary who will not disclose compensation. If a life settlement broker is involved, ask for gross and net figures side by side.
Taxes follow a general tiered framework — return of premium up to basis, ordinary income above basis up to cash value, capital gain beyond that — with different treatment for a certified terminal or chronic illness. Converted term usually holds little cash value, which simplifies but does not eliminate the analysis. Ask a CPA.
If Medicaid is part of the plan, coordinate with an elder law attorney. Selling for fair market value is treated differently from giving a policy away during the look-back period, and proceeds held on the application date are countable.
Other Farm Bureau Policy Types and Next Steps
If you also hold permanent Farm Bureau coverage, the decision framework differs by type: whole life has a guaranteed surrender floor and possible dividends, flexible-premium universal life turns on rising cost-of-insurance charges, and guaranteed universal life is priced off its no-lapse guarantee. See our guides to selling a Farm Bureau Life whole life policy, a Farm Bureau Life universal life policy, or a Farm Bureau Life GUL policy.
If your conversion window is closing, act now. Send the policy cover page for a free, no-obligation review or call (305) 209-7183. Pine Lake Life Solutions is not affiliated with any Farm Bureau company and provides education rather than legal, tax, or investment advice.
Frequently Asked Questions
Can I sell a term policy without converting it?
Almost never. Term coverage expires and has no cash value, so there is nothing durable for a buyer to purchase. The main exception involves a viatical situation where the insured’s life expectancy is shorter than the remaining term period. In ordinary cases the conversion privilege is what creates market value.
How do I find my conversion deadline?
Call the issuing Farm Bureau company using the number on your most recent premium notice and ask for the last date you may convert, which permanent products are available, and whether partial conversion is allowed. Request the answer in writing. Conversion terms vary by product series and issue year.
Which Farm Bureau company issued my policy?
Check the cover page and your annual statement. Farm Bureau Life Insurance Company in West Des Moines, Iowa, Southern Farm Bureau Life Insurance Company in Jackson, Mississippi, and several state affiliates are separate insurers that share the Farm Bureau name. Only the issuer can process your conversion.
Will converting require a new medical exam?
Generally no. The purpose of a conversion privilege is to let you obtain permanent coverage without new evidence of insurability, which is exactly why it is so valuable after a health decline. Some conversion options carry conditions, so confirm the specifics with the carrier in writing.
The permanent premium looks unaffordable. Does that end it?
Not necessarily. In a settlement the buyer takes over premium payments after closing, so you are not carrying that cost long term. You may need to fund it briefly while the transaction is completed, which is why timing the conversion against the review matters.
Should I convert before or after getting a review?
Get the free review first whenever the deadline permits, so you know whether an offer is realistic before committing to permanent premiums. If your conversion window closes within weeks, that urgency can reverse the order. Say so at the outset so the review can be prioritized.
What if I already missed the conversion deadline?
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 early access to benefits. A free review costs nothing and settles the question quickly.
How long does the whole process take?
Plan on 60 to 120 days for the settlement itself, plus the carrier’s processing time for the conversion. Medical records collection and the in-force illustration take the longest. Your funds should sit in independent escrow until the insurer confirms the ownership change.
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Related Reading
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- What Is The Medicaid Look Back Period
- Sell My Farm Bureau Life Whole Life Policy
- Sell My Farm Bureau Life Universal Life Policy
- Sell My Farm Bureau 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.