In most cases no, and Globe Life term policies fail the test on two separate counts rather than one. The general rule for any term policy is that it is marketable only while it can still be converted into permanent coverage. A buyer is purchasing a death benefit that will eventually be paid; term left alone expires and pays nothing, so an unconvertible term policy is worth nothing to a buyer. That rule applies to every carrier.
The second hurdle is specific to how this coverage is sold. Globe Life’s direct-to-consumer business is built on small-face, simplified-issue policies — a short health questionnaire, no medical exam, coverage issued in days, and face amounts that for most adult applicants sit well below the level at which a settlement market exists. Institutional providers generally will not open a file under $100,000 of death benefit, and many set the floor at $250,000. A $30,000 direct-response term policy does not reach either number.
That is the honest starting position. It is still worth ten minutes to confirm what you actually hold, because people misremember face amounts, and because there are a few things inside these contracts that are worth using even when a sale is off the table.
In This Article
What Globe Life term coverage typically is
Globe Life Inc. — known as Torchmark Corporation until the name changed on August 8, 2019 — is headquartered in McKinney, Texas, having moved from Birmingham, Alabama in 2006. Its consumer-facing insurer, Globe Life And Accident Insurance Company, is domiciled in Nebraska and supervised by the Nebraska Department of Insurance. Affiliates under the same parent include American Income Life Insurance Company in Waco, Texas, Liberty National Life Insurance Company, United American Insurance Company, and Family Heritage Life Insurance Company of America.
The Globe Life product lineup as of 2026 is deliberately narrow: term life, whole life, accidental death coverage, children’s coverage, and Medicare supplement. Universal life, indexed universal life, and variable products are not part of it. Nearly everything is issued on a simplified-issue basis with no medical exam, which is the trade the business model makes — speed and easy acceptance in exchange for modest face amounts and rate classes that are not individually underwritten.
Direct-response term of this kind is also frequently structured on an age-banded or annual renewable basis rather than as a long level-premium contract. Instead of one premium fixed for twenty years, the rate steps up at set ages or every year, and the increases become steep in the seventies. Owners often experience this as “my premium keeps going up” without realizing it is designed into the product.
Your policy schedule page settles all of it: the issuing company, the face amount, the premium structure, and the plan name. Start there, not with a quote request. Our guide to reading a policy cover page covers what to look for.
The conversion question, asked correctly
Send a written request to the issuing company’s service department asking four things:
- Does this policy include a conversion privilege? Simplified-issue direct-response term does not always carry one, and this is the question people assume the answer to.
- If it does, what is the last calendar date it can be exercised? Ask for a date, not a formula. Two limits usually apply at once and the earlier one governs: a conversion window shorter than the level period, and an attained-age cutoff commonly set at 65 or 70.
- Which permanent plan does it convert into, and what would the premium be at the insured’s current age?
- Is partial conversion allowed, and what is the minimum face amount?
Get it in writing. A phone answer read off a service screen is not something a buyer’s counsel will rely on at closing, and conversion terms vary between policy series issued in different years.
If the answer is that no conversion right exists or that it expired, the conclusion is straightforward: the policy has no market value, and any firm that responds to that fact by collecting your medical records anyway is not being straight with you. See how a conversion rider works and life settlement red flags.
| Condition | Typical direct-response term policy | What the settlement market needs |
|---|---|---|
| Face amount | Often well under $100,000 | $100,000 minimum; $250,000+ preferred |
| Underwriting at issue | Simplified issue, no medical exam | Any, but health records must exist |
| Premium structure | Frequently age-banded or annual renewable | Level term with a conversion right |
| Conversion privilege | Limited or absent on some products | Open, with 1-2 years of runway |
| Insured profile | Any age accepted | Past 70, or 65+ with impairments |
| Realistic outcome | No market; use riders and reassess coverage | Competitive bidding among providers |
The size problem, stated plainly
Even with a live conversion right, face amount decides whether anyone will look at the file. The economics are not a matter of preference. A provider evaluating a policy pays for medical records retrieval across multiple providers, one or two independent life expectancy reports from underwriting firms, legal and compliance review, and escrow administration. Those costs total into the low thousands of dollars per file and they do not scale down with the death benefit.
Against a $2 million policy those costs are noise. Against a $30,000 policy they consume any plausible margin, which is why the file never gets opened. This is why minimum policy size is the first filter in the industry and why an honest answer on small coverage takes one conversation rather than three months.
Two situations do change the arithmetic, and both are worth checking:
Stacked coverage. Households that responded to direct-mail or television solicitations frequently bought more than one policy, sometimes from several carriers over a decade. Combined face amounts sometimes reach a level worth reviewing — and even when they do not, the combined premium is often doing real damage to a fixed income for coverage the family no longer needs in that shape.
A terminal or seriously chronic diagnosis. Viatical settlements operate on different economics than ordinary life settlements, with shorter projected holding periods, and some viatical buyers will consider face amounts below the standard settlement floor. If a physician has given a prognosis measured in months, that is worth a call before assuming the answer is no.
What to do when the policy cannot be sold
Most Globe Life term owners reading this page will land here, so it deserves more than a sentence.
Check the rider schedule. Many term contracts include an accelerated death benefit for terminal illness at no additional premium. That rider pays a discounted portion of the face amount while the insured is living, with no buyer, no broker, and no three-month process. On small policies it is often the only route to cash that exists. See how acceleration riders work.
Decide the coverage question on its own terms. If the premium is climbing under an age-banded structure and the family no longer needs the protection, stopping is a legitimate decision and does not require anyone’s permission. If the family does need it, a small term policy at an old rate class may still be cheaper than replacing it at current age — and replacing coverage is exactly the wrong move for someone whose health has declined since issue.
Do not lapse a policy while a diagnosis is pending. This is the single most expensive mistake in this category. Grace periods are typically 31 days, and reinstatement after that usually requires evidence of insurability and restarts the two-year contestability period. See what to do when a policy is lapsing.
Look at whether you are paying for the same coverage twice. Employer group life, an association policy through a union or fraternal organization, and a direct-response policy bought from a mailer frequently coexist without anyone comparing them. Consolidating is not a sale, but it can free up more monthly cash than a settlement on coverage this size ever would.
When a term policy genuinely is worth reviewing
For completeness, here is the profile that actually clears the market — so you can measure your situation against it honestly rather than hopefully.
- Face amount of $100,000 or more, and preferably $250,000 or more, on a single policy.
- A live conversion privilege with at least a year of runway, ideally two. A settlement takes roughly three to four months from application to funding, and starting weeks before a deadline does not work.
- An insured past 70, or past 65 with health impairments that shorten projected life expectancy relative to standard mortality tables. Good health at 64 disqualifies a file no matter how large or convertible the policy is. See health requirements.
- Outside the two-year contestability period, which restarts after any reinstatement.
- A reasonable conversion premium at current attained age, since that is what the buyer will fund for the rest of the insured’s life.
Fully-underwritten level term policies bought through an agent — often $500,000 or $1 million of coverage on a household earner — routinely fit this profile. Direct-response coverage rarely does. That is a difference in product design, not a judgment about the carrier.
Pine Lake Life Solutions does not purchase policies and is not licensed in every state. What we offer is education and a free policy review: send the policy cover page and we will tell you in one conversation whether the face amount and conversion status leave anything worth pursuing, and what to do with the policy if they do not. Call (305) 209-7183.
Frequently Asked Questions
Does a Globe Life term policy have a conversion option?
Not necessarily. Simplified-issue direct-response term does not always include a conversion privilege, and that is the assumption people most often get wrong. Ask the issuing company in writing whether the privilege exists, the last calendar date it can be exercised, which permanent plan it converts to, and whether partial conversion is allowed.
Why does face amount matter so much for a life settlement?
Because per-file costs are fixed. Medical records retrieval, one or two independent life expectancy reports, legal and compliance review, and escrow administration total into the low thousands of dollars whether the death benefit is $30,000 or $3 million. Below roughly $100,000 of face amount there is no margin left, so providers decline to open the file.
Which company regulates Globe Life And Accident Insurance Company?
It is domiciled in Nebraska and supervised by the Nebraska Department of Insurance, while Globe Life Inc.’s corporate headquarters are in McKinney, Texas. The holding company was named Torchmark Corporation until August 8, 2019, when it took the Globe Life name and changed its NYSE ticker from TMK to GL.
My Globe Life premium keeps increasing. Why?
Many direct-response term products are age-banded or annually renewable rather than level for a fixed term, so the rate steps up at set ages or each year, with the increases becoming steep after 70. Check the premium schedule on your policy pages, which shows the scheduled rate at each future age.
What can I do if the policy cannot be sold?
Check the rider schedule for an accelerated death benefit, which can pay a discounted portion of face during a terminal illness without any buyer involved. Then decide the coverage question directly: whether the family still needs the protection, and whether you are paying for duplicate coverage through an employer, union or association plan.
Should I let a small term policy lapse to save money?
Not while any diagnosis is pending or in process. Grace periods run about 31 days, and reinstating after that generally requires evidence of insurability and restarts the two-year contestability period. If the coverage is genuinely unneeded and the premium is rising, stopping is a reasonable decision — just make it deliberately.
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
- Minimum Policy Size For A Life Settlement
- What Is A Term Conversion Rider
- What Is An Accelerated Death Benefit Rider
- What Is A Viatical Settlement
- Health Requirements For A Life Settlement
- Policy Lapsing What To Do
- Where To Find Your Policy Cover Page
- Life Settlement Scams Red Flags
- Sell My Globe 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.