Yes — a Genworth term life policy can be sold in a life settlement, and no permission from the insurer is needed, because the buyer is purchasing your contract rather than asking the carrier for a favor. Term comes with one condition attached, though: because a term policy has no cash value and expires on a fixed date, buyers almost always require that it be convertible to permanent coverage. The conversion privilege is what turns an expiring promise into a transferable asset.
That makes term the most time-sensitive policy type in the entire secondary market. Conversion rights are not open-ended. They typically end at a stated attained age, or after a set number of policy years, or when the level-premium period ends — whichever the contract says comes first. When that window closes, it does not reopen, and the practical ability to sell usually closes with it.
Genworth term owners often hold contracts that predate the Genworth name. Genworth Financial separated from General Electric in a 2004 public offering and inherited term blocks written by First Colony Life Insurance Company, a large term writer acquired into GE’s insurance operations in the 1990s, along with Life Insurance Company of Virginia and other affiliates. Genworth stopped selling new traditional life insurance in 2016 and has serviced these blocks in runoff since. Pine Lake Life Solutions is not affiliated with Genworth Financial.
In This Article
Find the Conversion Language First
Before anything else, locate the conversion provision in your contract. It is usually a short paragraph titled “Conversion Privilege” or “Right to Convert,” and it will state three things: the deadline (an attained age such as 65 or 70, or a policy-year limit), what the policy may be converted into, and whether conversion requires evidence of insurability. The answer to that last one is almost always no — that is the point of the privilege. You convert at your original risk class regardless of current health.
If you cannot find the language or the contract is missing, call the policy service center and ask directly: “Is this policy convertible, until what date, and to which products?” Get the answer in writing. On a runoff block, the menu of available conversion products may be narrower than it was when the policy was sold, so ask what is actually offered in 2026 rather than what the contract theoretically allows.
Why Buyers Need Permanent Coverage
A life settlement buyer is acquiring a death benefit that will eventually be paid. Term insurance is designed to expire before that happens — that is why it is inexpensive. A 20-year level term policy issued at 60 simply ends at 80, and after the level period the annual renewal premium climbs so steeply that keeping it is rarely rational.
Convert the same policy to universal life or another permanent form and the picture flips: the coverage now lasts as long as it is funded, and a buyer can price it. This is why the question “can I sell my term policy?” almost always becomes “is this policy still convertible?” A non-convertible term policy, or one whose window has already closed, generally has no secondary-market value at all — an honest answer worth having early rather than late.
Who Pays for the Conversion
Conversion itself does not cost a fee at most carriers, but the converted permanent policy carries a much higher premium than the term policy did. That is the real cost, and it is the reason many owners assume conversion is out of reach.
In a settlement, the sequence is usually arranged so the conversion happens as part of the transaction rather than as a bill you carry alone. The details depend on the buyer, the carrier’s rules, and timing, and they should be spelled out plainly in writing before you sign anything. Ask the question directly: who pays the converted policy’s premium, and when does ownership transfer relative to the conversion? If nobody will answer that clearly in writing, that is information too.
| Term Situation | Can It Be Sold? | What to Do Next |
|---|---|---|
| Convertible, window still open | Usually yes, after conversion | Confirm deadline in writing, then request a review |
| Convertible, window closing this year | Yes, but time-critical | Act now; conversion cannot be reopened later |
| Conversion window already closed | Generally no | Check whether any rider or exception applies |
| Non-convertible term | Generally no | Review other coverage you may own |
| Group / employer term | Only if converted in time | Convert within about 31 days of leaving the employer |
| Return-of-premium term | Depends on the contract | Compare the refund against a possible offer |
Group and Employer Term Is a Different Clock
If your term coverage came through an employer or an association rather than as an individual contract, the deadline is usually far shorter. Group certificates commonly allow conversion to an individual policy only within about 31 days of the date coverage ends — retirement, layoff, or leaving the employer. Miss that window and the coverage simply disappears.
This catches people constantly, because the 31-day notice arrives in the same envelope stack as everything else during a job change. If you or a family member is retiring and holds meaningful group life coverage, check the conversion rules the same week, not the following month. Coverage that could have been converted and later sold is worth more than coverage that quietly ended.
Documents and What a Free Review Needs
To screen a term policy, a specialist needs the cover page — insurer, policy number, face amount, issue date — and, ideally, the conversion provision page. Those two pages answer most of the question in a single reading. That is the entire ask for a free policy review.
If the policy is convertible and the insured’s age and health look workable, the file grows to include a current premium notice, written confirmation of the conversion deadline and available products, and eventually an in-force illustration on the converted policy plus a HIPAA authorization for life-expectancy review. Because term has no cash value, there is no surrender figure to compare against — see why cash surrender value exists and why term has none.
How the Transaction Closes
Once converted, the policy transfers exactly like any other permanent contract. The buyer prepares the insurer’s absolute assignment — change of owner and beneficiary — you sign as owner, and the insurer records it and confirms in writing. Notarization or a signature guarantee is common, and the insurer will verify the policy is in force and not in a grace period before recording.
Funds sit with an independent escrow agent and release only after that written confirmation. Most states give the seller a rescission window afterward. Expect the overall timeline to run roughly 60 to 120 days, and add time for the conversion itself. The step-by-step sequence, including structures where you keep part of the death benefit, is in how the policy options work.
Worked Example and Realistic Expectations
Hypothetical, rounded, for illustration only. A 74-year-old holds a $500,000 20-year level term policy issued at 62, still convertible for two more policy years, currently costing $6,000 a year. Do nothing and the level period ends, renewal premiums spike, and the coverage lapses with no value. Convert it and the policy becomes permanent; a settlement in the published 10%–35%-of-face range would fall between $50,000 and $175,000, subject to underwriting, the converted policy’s premium load, and the insured’s life expectancy. The point of the example is the contrast between zero and something, not the specific figures.
Term candidates that tend to work: convertible policy with time left on the window, insured roughly 65 or older, face amount of $100,000 or more. Candidates that do not: non-convertible term, an expired window, or a small face amount. Check the general screen in what policies qualify, compare exits in settlement versus surrender, and read more in the education center. To get a policy looked at, send the cover page or call (305) 209-7183.
Frequently Asked Questions
Can I sell a term life policy at all?
Yes, if it is convertible to permanent coverage and the conversion window is still open. Term itself has no cash value and expires on a set date, so buyers rely on the conversion privilege to turn it into a lasting death benefit. Non-convertible term generally has no secondary-market value.
How do I find out whether my Genworth term policy is convertible?
Look for a provision titled Conversion Privilege or Right to Convert in the contract, which states the deadline and what the policy converts to. If you cannot find it, call the policy service center and ask for the answer in writing, including which conversion products are actually available in 2026.
Does converting require a new medical exam?
Typically no. The value of a conversion privilege is that it lets you move to permanent coverage at your original risk classification without evidence of insurability. Confirm this with the servicing carrier, since terms vary by contract.
Who pays the higher premium after conversion?
Conversion usually carries no fee, but the permanent policy costs more each year. In a settlement, conversion is generally handled as part of the transaction rather than left entirely to you. Get the arrangement in writing before signing anything, including when ownership transfers relative to the conversion.
My term policy came from my employer. Is that different?
Yes, and the clock is much shorter. Group certificates commonly permit conversion to an individual policy only within about 31 days after coverage ends. If someone in your family is retiring with meaningful group life coverage, check the conversion rules immediately.
My policy says First Colony. Does Genworth service it?
First Colony Life was acquired into General Electric’s insurance operations in the 1990s and consolidated under Genworth after its 2004 separation from GE. Confirm the current servicing company using the phone number on your most recent premium notice as of 2026.
How long does the whole process take?
Budget 60 to 120 days for the settlement itself, plus additional time for the conversion. That is why an expiring conversion window matters so much — the paperwork cannot be compressed into the final weeks before the privilege ends.
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Related Reading
- What Policies Qualify For Life Settlement
- Cash Surrender Value Life Insurance
- How It Works Policy Options
- Life Settlement Vs Surrender
- Education Center
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.