Yes — in principle any life insurance policy from any carrier can be sold in a life settlement, as long as the policyholder and the policy qualify; the buyer purchases the contract from you, the carrier’s permission is not required, and the carrier is not a party to your decision. That is the legal starting point. But this page has to be straight with you: the two things people usually mean when they search for “Homesteaders group life” — a pre-need funeral policy and an employer group life certificate — are both hard cases, and often not sellable at all.
Homesteaders Life Company, based in West Des Moines, Iowa, is a mutual carrier whose business is built almost entirely around pre-need funeral insurance sold through funeral homes. Those policies are usually small in face amount and are commonly assigned to the funeral home to pay for a specific funeral plan. Confirm the exact assignment language and current financial strength rating with the carrier directly, as details vary by contract and by state (as of 2026).
Below we explain what makes a policy sellable, why pre-need and group coverage usually fall outside that, and the one path that sometimes works: converting group coverage into an individual policy inside a short window. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Homesteaders Life Company or any employer plan.
In This Article
- First, What Kind of Homesteaders Policy Do You Actually Have?
- Why Pre-Need Funeral Policies Usually Cannot Be Sold
- Group Life: The 31-Day Window Is the Whole Game
- Portability vs. Conversion — They Are Not the Same Thing
- Losing the Employer Subsidy — Run the Numbers Honestly
- Documents to Gather, Whichever Path You Take
- If the Policy Is Too Small to Sell, What Are the Alternatives?
- How a Settlement Works When a Policy Does Qualify
- Frequently Asked Questions
First, What Kind of Homesteaders Policy Do You Actually Have?
Before anything else, identify the contract. Pull the cover page — the first page showing the insurer name, policy number, face amount, and issue date.
- Pre-need funeral insurance. This is Homesteaders’ core product. It was almost certainly purchased at a funeral home, often bundled with a written funeral goods and services agreement. Face amounts commonly run in the single-digit thousands to low tens of thousands — sized to a funeral, not to income replacement.
- Employer or association group life. This is a certificate under a master policy your employer or association owns. You are a covered member, not the policy owner in the ordinary sense.
- An individual policy from an earlier carrier that was later assumed or serviced by another company.
Each of those has a different answer, and mixing them up is the most common reason people get bad information about their options.
Why Pre-Need Funeral Policies Usually Cannot Be Sold
Pre-need funeral insurance is designed to do one job: fund a specific funeral at a specific funeral home. Two features usually close the door on a settlement.
Assignment. Pre-need contracts are frequently assigned to the funeral home as the beneficiary or assignee, and in many states that assignment is irrevocable once the funeral goods and services contract is signed. If you no longer control who gets the proceeds, you have nothing to transfer to a buyer. Read your assignment form and confirm with the funeral home and the carrier what can and cannot be changed.
Size. The secondary market is an economics business. Buyers underwrite medical records, pay servicing costs, and hold the policy for years. Those fixed costs do not shrink just because the death benefit does. Pine Lake works with policies of $100,000 or more in death benefit, and most of the market is in the same range or higher. A $12,000 pre-need certificate simply cannot carry the cost of the transaction. Saying so plainly is more useful to you than a maybe.
Group Life: The 31-Day Window Is the Whole Game
Employer and association group life is generally not sellable while it remains group coverage. The employer owns the master contract, the certificate typically ends when your employment or membership ends, and there is no individual contract for a buyer to take title to.
The path that can work is conversion. Most group certificates give a departing member the right to convert the group coverage into an individual permanent policy without new medical underwriting. That right almost always expires on a short clock — commonly about 31 days after coverage ends, though some plans and states allow a slightly longer period. Miss it and the right is gone for good, with no appeal.
So if you are retiring, changing jobs, or leaving an association, read your certificate’s conversion section the same week. Once the coverage exists as an individual permanent policy in your name, it becomes an ordinary asset that can be evaluated like any other — see what policies qualify for a life settlement.
Portability vs. Conversion — They Are Not the Same Thing
People use these words interchangeably. They are different rights with different results.
Portability lets you keep group term coverage after you leave, at group rates you now pay in full. It stays term coverage with no cash value, and it usually still terminates at a stated age. Ported term is rarely a settlement candidate on its own.
Conversion exchanges the group coverage for an individual permanent policy — whole life or universal life — issued to you as owner. Premiums jump, sometimes sharply, because you lose the employer subsidy and the pricing is based on your attained age with no medical exam credit. That premium shock is exactly why so many converted policies later become settlement candidates: the coverage is real and permanent, but the cost has outgrown the need.
If the certificate offers both, compare them before choosing. Conversion is the one that creates a transferable, permanent asset.
| What You Own | Who Owns the Contract | Typical Face Amount | Realistic Path |
|---|---|---|---|
| Homesteaders pre-need funeral policy | You, often assigned to the funeral home | Small — sized to a funeral | Usually not sellable; keep it or ask about cancellation rights |
| Employer group life certificate | Employer owns the master policy | 1–2x salary, varies | Not sellable as group; convert within about 31 days of leaving |
| Ported group term | You, but still term | Same as prior coverage | Rarely sellable; no cash value, terminates at a stated age |
| Converted individual permanent policy | You | Whatever you convert | Evaluated like any policy; $100k+ death benefit needed |
Losing the Employer Subsidy — Run the Numbers Honestly
While you were employed, your employer likely paid part or all of the premium, and the group rate spread cost across a whole workforce of mostly healthy people. On your own, you pay the full freight at your own age.
Before you convert, ask the plan administrator for the actual converted premium in writing, not an estimate. Then ask yourself three questions: Does anyone still depend on this death benefit? Can the premium be paid for the next ten years without strain? Is there another asset that covers the same need more cheaply? Our page on whether a life settlement is worth it walks through the same trade-off from the other direction.
Converting solely in order to sell is a decision to make with eyes open. Conversion costs real money up front, offers are never guaranteed in advance, and a licensed advisor or tax professional should weigh in on your specific situation.
Documents to Gather, Whichever Path You Take
Whether you are exploring a converted policy or just want a clear read on what you own, three documents answer nearly every question:
- The policy or certificate cover page — insurer, policy or certificate number, face amount, issue date, owner and beneficiary.
- The most recent annual statement — current death benefit, any cash surrender value, outstanding loans, and premium due.
- An in-force illustration for permanent coverage, requested from the servicing carrier. It projects premiums, values, and the year the policy would lapse under current and guaranteed assumptions. See what an in-force illustration is.
For a free policy review, the cover page alone is enough to start.
If the Policy Is Too Small to Sell, What Are the Alternatives?
An honest no should still come with options.
- Keep the pre-need policy. If it is paid up or nearly so and it funds a funeral you actually want, it is doing its job.
- Ask about surrender or cancellation rights. Some pre-need contracts allow cancellation with a refund; many, particularly irrevocably assigned ones used for Medicaid planning, do not. Ask the funeral home and the carrier in writing.
- Consolidate small policies. Several small certificates rarely add up to a sellable asset, but knowing the total helps you plan.
- Look at other coverage you own. An old individual universal life or whole life policy of $100,000 or more is far likelier to be a candidate than a pre-need certificate.
Browse the education center for the full picture, or call (305) 209-7183 and describe what you have.
How a Settlement Works When a Policy Does Qualify
For readers whose converted or individual policy clears the size threshold, the process is predictable. A free review screens the cover page in a few days. Documentation — in-force illustration, medical records, life expectancy estimates — usually runs two to four weeks. Offers come in writing; ask for both gross and net-of-commission numbers. Closing runs through an independent escrow agent, and the carrier records the new owner before funds release. Most states then give you a rescission window.
End to end, plan on roughly 60 to 120 days. Payouts in the market have historically fallen in a range of about 10% to 35% of face value, and the federal GAO’s study of the market (GAO-10-775) found sellers received on the order of four to eight times cash surrender value. Your policy’s numbers are what matter — compare against cash surrender value and read how much you can get for a policy.
Frequently Asked Questions
Can I sell a Homesteaders pre-need funeral policy?
Usually not. Pre-need policies are small and are commonly assigned to a funeral home, sometimes irrevocably, so there is no transferable interest and the face amount is far below what the secondary market can underwrite. Check your assignment form and ask the carrier and funeral home in writing what can be changed. If it is paid up and funds a funeral you want, keeping it is often the right answer.
Do I need Homesteaders’ permission to sell a policy?
No. A life insurance policy is personal property, and a buyer purchases the contract from the owner. The carrier’s role is limited to recording the ownership and beneficiary change once a sale closes. The carrier is not a party to the decision and does not approve or reject it.
Why is group life almost never sellable?
Because your employer or association owns the master policy and you hold a certificate under it, not an individual contract. There is nothing for a buyer to take title to, and the coverage typically ends when your employment or membership ends. Conversion to an individual permanent policy is the step that changes this.
How long do I have to convert group coverage?
Most plans allow roughly 31 days after coverage ends, though some plans and states differ. The deadline is not advertised and it does not renew. Read the conversion section of your certificate and call the plan administrator the same week your coverage ends.
Is converting worth it if the premium goes up a lot?
Sometimes. You lose the employer subsidy and the premium is set at your attained age, so the jump can be steep. Get the converted premium in writing, then weigh it against whether anyone still needs the death benefit. This is a decision to review with a licensed advisor or tax professional, not a rule of thumb.
What is the minimum policy size that makes a settlement realistic?
Pine Lake works with policies of $100,000 or more in death benefit. Underwriting, medical records, and servicing costs are largely fixed, so smaller policies cannot carry the transaction. That is why final-expense and pre-need coverage almost never qualifies.
How much do sellers typically receive?
Reported outcomes generally fall in a range of about 10% to 35% of the death benefit, and the federal GAO study of the market (GAO-10-775) found sellers received roughly four to eight times cash surrender value. Your number depends on age, health, premium load, and the policy’s terms. No offer can be quoted before a review.
What do I send to get a free review?
Just the policy or certificate cover page — the first page showing the insurer, policy number, face amount, and issue date. That is enough to tell you quickly whether you have a candidate. Call (305) 209-7183 with any questions about what to look for.
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
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- What Is An In Force Illustration
- Cash Surrender Value Life Insurance
- How Much Can I Get For My Life Insurance Policy
- 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.