Term life insurance has no cash value, no surrender value, and nothing to borrow against. When the level period ends, the premium typically jumps to an annually increasing rate that most people cannot justify paying, and the coverage disappears. That leads a lot of owners to assume there is nothing to be done with an F&G term policy except drop it. Frequently that assumption is wrong, and it is wrong in a way that is time-limited.
The reason is the conversion privilege. Most term contracts allow the owner to convert some or all of the death benefit into a permanent policy with the same carrier, without new medical underwriting, up to a stated deadline. That privilege is what makes a term policy potentially monetizable. Once the deadline passes, it is gone. Pine Lake Life Solutions is an independent education resource; we do not purchase policies, we are not affiliated with F&G, and nothing here is legal, tax, or investment advice.
In This Article
- Term Has No Cash Value, So What Is There to Sell?
- Find Your Conversion Deadline Before You Do Anything Else
- Why an Expiring Conversion Window Is Time-Critical
- Who Issued the Policy: F&G’s Name and Ownership History
- The Ownership Transfer Step F&G Requires
- If the Conversion Window Has Already Closed
- What a Free Policy Review Covers
- Frequently Asked Questions
Term Has No Cash Value, So What Is There to Sell?
Strictly speaking, an unconvertible term policy in its level period has very little secondary-market value, because a buyer taking it over inherits an asset that expires. Buyers pay for death benefits that will eventually be collected. A term policy that will terminate long before the insured’s life expectancy is, from that perspective, a wasting asset.
The conversion privilege changes the picture. If the contract lets you exchange the term coverage for a permanent policy without new evidence of insurability, then the underlying death benefit can be made permanent — and a permanent policy on an insured with a shortened life expectancy is exactly what the secondary market prices. In practice, transactions involving term policies usually run as a conversion first, then a settlement on the converted permanent contract, with the mechanics coordinated so the owner is not left funding an expensive permanent policy indefinitely.
This is why the sequence matters more here than on any other policy type. Read the conversion clause first. Everything else is downstream of what that clause says and when it expires.
Find Your Conversion Deadline Before You Do Anything Else
Conversion privileges are defined by the individual contract series, not by the carrier’s brand. Two F&G term policies issued in different years can have materially different rules. You cannot rely on what an agent told you, on a comparison website, or on this page. You have to read your own policy and then get F&G to confirm it in writing.
Deadlines are usually expressed one of three ways: an attained age limit for the insured, a fixed number of policy years from issue, or the end of the level premium period, whichever comes first. Some contracts also restrict which permanent products the coverage may convert into, allow only partial conversion, or permit conversion only of amounts above a minimum face. Some allow conversion of a portion while leaving the balance as term.
Request, in writing, the following from F&G: whether your policy is convertible; the exact last date on which conversion may be exercised; the permanent plans currently available for conversion; the premium for the converted policy at your current age; whether the original underwriting class carries over; and whether any partial conversion is permitted. Ask for the answer in writing, dated, and keep it.
Why an Expiring Conversion Window Is Time-Critical
Every other decision on this page can wait a few weeks. This one cannot. A conversion privilege is a contractual right with a hard expiration date, and no carrier is obliged to reinstate it once it lapses. If the deadline passes, an insured whose health has declined has lost the one route to permanent coverage that did not require new underwriting — and with it, the route to any secondary-market value.
The practical failure mode is mundane. An owner receives a notice that the level premium period is ending, decides the new premium is unaffordable, and stops paying. The policy lapses. Some months later they learn that the same policy, converted before it lapsed, might have had value. At that point there is nothing left to work with, because both the coverage and the conversion right terminated together.
If you are within twenty-four months of a conversion deadline, or within the final year of your level premium period, treat that as the deadline for making a decision rather than the deadline for starting to think about one. Underwriting file reviews, illustration requests, and carrier processing all take time.
| What to confirm with F&G | Where it usually appears | Why it matters |
|---|---|---|
| Is the policy convertible | Conversion provision | Determines whether any option exists |
| Last conversion date | Attained age or policy year limit | Hard deadline, not extendable |
| Available permanent plans | Current carrier product list | Sets the converted premium |
| Underwriting class carryover | Conversion provision | No new medical exam if it carries |
| Partial conversion allowed | Conversion provision | Lets you convert only part of the face |
Who Issued the Policy: F&G’s Name and Ownership History
Older term policies are where carrier name confusion causes the most trouble, because the owner is often trying to trace a contract they have not looked at in twenty years. The history is worth knowing.
Fidelity & Guaranty Life Insurance Company was incorporated in Maryland in 1959 and was a subsidiary of United States Fidelity and Guaranty Company until 1995. Old Mutual plc acquired it in September 2001 and, in 2007, renamed it OM Financial Life Insurance Company. Old Mutual sold the U.S. life and annuity business to Harbinger Group on April 6, 2011, and the Fidelity & Guaranty Life name was restored that month. The home office relocated to Des Moines, Iowa in 2013. CF Corporation acquired the business in 2017; Fidelity National Financial completed its acquisition in 2020; and on December 1, 2022, F&G Annuities & Life, Inc. began regular-way NYSE trading under the ticker FG after FNF distributed roughly 15 percent of the shares and retained about 85 percent.
Two separate insurance entities exist: Fidelity & Guaranty Life Insurance Company, domiciled in Des Moines, Iowa, and Fidelity & Guaranty Life Insurance Company of New York. A.M. Best affirmed a Financial Strength Rating of A (Excellent) and Long-Term ICR of “a” for both on March 12, 2025, with a stable outlook. Confirm current ratings at ambest.com.
The Ownership Transfer Step F&G Requires
If a conversion is completed and a settlement follows, the transaction is only effective when F&G records the new owner. F&G publishes the process on its own contact pages. Ownership changes are made on F&G’s Transfer of Ownership form, identified as ADMIN 0177, with printed name, signature, and date from the account holder and policy owner.
Trust-owned policies require pages 1 and 2 of the trust plus the signature page, signed by the trustees. Corporate owners or a power of attorney require two corporate officers’ signatures with titles. Forms go to the F&G Service Center at P.O. Box 81497, Lincoln, NE 68501-1497, or overnight to 777 Research Drive, Lincoln, NE 68521. The life fax number listed is 800.281.5777, and F&G asks that you allow three business days for faxed documents to enter processing; confirmation is mailed to the owner’s address on file. The published policyholder service number for individual life and annuity contracts is 888.513.8797. Verify all details with F&G before submitting anything, since forms and addresses change.
Keep premiums current throughout. A policy that lapses during a paperwork delay is worth nothing regardless of what was agreed.
If the Conversion Window Has Already Closed
It is worth checking rather than assuming, because owners are often wrong about their own deadline. But if F&G confirms in writing that the policy is no longer convertible, the realistic options narrow.
You can continue the coverage at the post-level annually increasing premium, which is expensive but is sometimes rational for a short, defined period — for example, where an insured is in poor health and the increasing premium is still far below the value of the coverage to the family. You can let it lapse. Or, if new coverage is genuinely needed and health permits, you can shop a new policy, understanding that pricing will reflect your current age and health.
What you should not do is let it lapse without first confirming, in writing, that no conversion right remains. That confirmation takes a phone call and a letter, and it is the difference between an informed decision and an irreversible one.
What a Free Policy Review Covers
Pine Lake does not buy policies and does not sell insurance at the end of a review. We read what you already own and explain it. For a term policy that means locating the conversion clause, identifying the deadline, listing the questions to put to F&G in writing, and explaining what would and would not follow if you converted.
Bring the policy specification pages, the most recent premium notice, any letter you have received about the end of the level premium period, and the declaration page showing the issuing company name. If you cannot find the policy, F&G can provide a duplicate to the owner of record.
There is no cost and no obligation. Eligibility for any secondary-market transaction depends on age, health, contract terms, and the rules of your state, and no one can promise you an outcome before those facts are known. What we can do is make sure the conversion clock is not running out while you decide.
Frequently Asked Questions
Can I sell an F&G term policy without converting it first?
Rarely. Buyers pay for death benefits they expect to collect, and a term policy that expires well before the insured’s life expectancy usually does not support an offer. The conversion privilege is what allows the coverage to become permanent, which is what the secondary market prices. Confirm your conversion rights with F&G in writing before concluding anything about value.
Where do I find my conversion deadline?
It is in the conversion provision of your policy, usually expressed as an attained age of the insured, a number of policy years from issue, or the end of the level premium period. Because the terms differ by contract series, read your own policy and then ask F&G to confirm the exact last conversion date in writing. Do not rely on a verbal answer or on a generic product brochure.
Does Pine Lake buy term policies?
No. Pine Lake Life Solutions does not purchase policies of any type and is not affiliated with, endorsed by, or acting on behalf of F&G. We provide education and a free, no-obligation review of the policy you already own. Whether a policy qualifies for any secondary-market transaction depends on the insured’s age and health, the contract terms, and applicable state law.
My term premium just jumped. Should I stop paying?
Not before you check the conversion provision. Once the policy lapses, the conversion right generally lapses with it, and that door does not reopen without new underwriting. If cash flow is the immediate problem, ask F&G what the minimum payment is to keep coverage in force while you evaluate, and get the exact date coverage would otherwise terminate.
Is my term policy still with F&G if the paperwork says OM Financial Life?
Most likely yes. Fidelity & Guaranty Life Insurance Company was renamed OM Financial Life Insurance Company in 2007 under Old Mutual, and the original name was restored in April 2011 after the sale to Harbinger Group. Ask the F&G service center for written confirmation of the issuing entity and current servicing company tied to your policy number so you have it on file.
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
- Sell My Fidelity Guaranty Whole Life Policy
- Sell My Fidelity Guaranty Universal Life Policy
- Sell My Fidelity Guaranty Guaranteed Universal Policy
- Life Insurance Grace Period Explained
- Life Insurance After 65
- How Health Affects Life Settlement Value
- Life Settlement Process Step By Step
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.