Yes — an Illinois Mutual term life policy can be sold in a life settlement, but almost always only after it is converted to permanent coverage first. The right to sell is not in question. A policy is your personal property, the buyer purchases the contract from you, and the carrier’s permission is not needed. The obstacle with term is different: term has no cash value and it expires, so a buyer has nothing to hold unless the contract can be turned into permanent insurance.
That is why this page is really about one thing — a deadline. Nearly every convertible term policy carries a conversion privilege that ends at a set age or a set number of policy years, and it lapses quietly. No letter arrives. Once the window shuts, the term policy usually cannot be sold at any price.
Illinois Mutual is a family-controlled mutual insurer headquartered in Peoria, Illinois, founded in 1910, best known for individual disability income coverage sold alongside worksite and final-expense life through independent agents. Because its life face amounts often run small, check yours against the $100,000 minimum the secondary market generally applies, and confirm your policy’s conversion terms and the company’s current product availability directly with the carrier as of 2026. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Illinois Mutual.
In This Article
Three Questions That Decide Everything
Whether a term policy has any settlement value comes down to three answers, in this order.
1. Is the policy still convertible? Look at the policy schedule pages for a “conversion” or “exchange” provision. It will state an expiration — commonly a specific attained age or the end of a stated number of years from issue. If today’s date is past it, stop here.
2. What can it convert into? Some contracts let you convert to any permanent product the company currently offers; others limit you to a specific designated policy. Since Illinois Mutual’s individual permanent portfolio is small and product lineups change, ask the service center exactly which contracts are available to you as of 2026.
3. Is the death benefit $100,000 or more, and is the insured a senior or seriously impaired? Those are the qualifying screens for the secondary market. Our overview of what qualifies for a life settlement lays out the rest.
Why Conversion Is the Whole Ballgame
A conversion privilege is unusually valuable for one specific reason: it does not require new medical underwriting. You convert at the health class you had when the term policy was issued, regardless of what has happened to your health since. Someone diagnosed with a serious condition at 72 can convert on the strength of the physical they passed at 45.
In settlement terms, that combination is powerful. The buyer values the policy based on current health and current life expectancy, while the premium is set by the original underwriting class. That spread is exactly what makes converted term worth pursuing while the window is open.
The Deadline No One Reminds You About
Conversion deadlines are the most common way real money quietly disappears. Carriers are not required to send you a countdown, and agents who sold a policy twenty years ago may be retired. A 20-year level term bought at 50 can have a conversion right that ends at 65 or 70 — years before the term period itself runs out.
So do this today, not next month: pull the policy, find the conversion clause, and call Illinois Mutual to confirm in writing the last date you may convert and the maximum amount you may convert. Write the date on the folder. If the window is open and you are considering a settlement, sequence matters — get an indication of value before you convert, so you are not paying permanent premiums on a policy nobody wants.
| Situation | Can It Be Sold? | First Step |
|---|---|---|
| Convertible term, window open, $100k+ face, senior insured | Usually yes, after conversion | Confirm conversion deadline with the carrier in writing |
| Convertible term, face under $100,000 | Generally no | Consider partial conversion or keeping coverage |
| Conversion window already expired | Rarely | Check for return-of-premium or accelerated benefit riders |
| Non-convertible term, insured in good health | No | Shop new coverage if protection is still needed |
| Term with serious documented impairment, years remaining | Sometimes | Request a free policy review |
Partial Conversion: A Move Most People Miss
Many contracts allow converting only part of the face amount. That opens a middle path: convert enough to meet the settlement market’s $100,000 threshold, sell that portion, and let the rest of the term coverage run out on its own.
The reverse also works if your goal is protection rather than cash. Convert a slice, keep it as permanent coverage for final expenses, and drop the remainder. Ask the carrier whether partial conversion is permitted on your specific contract, what the minimum converted amount is, and whether any riders survive the conversion.
Term Policies That Are Not Convertible
If the conversion window has closed, be realistic. A pure term policy with no conversion right, no cash value and no return-of-premium feature has essentially no resale market. Occasional exceptions exist where the insured has a severe, well-documented impairment and the term still has substantial guaranteed years remaining, but they are rare and depend on a buyer willing to take that specific risk.
Some term contracts do carry a return-of-premium rider that pays back premiums at the end of the level period. That is a carrier feature, not a settlement, and it is worth checking before you drop anything. A free review costs nothing and will tell you which category you are in rather than leaving you guessing.
What to Send and What Happens Next
Send the policy cover page — insurer, policy number, face amount, issue date, insured’s date of birth — plus the pages containing the conversion provision. From there the sequence is: confirm the conversion right and available permanent products, get an indication of what the converted policy would be worth, complete the conversion with the carrier, then run the settlement itself.
The settlement stage takes 60 to 120 days on its own: authorizations, medical records, one or two independent life-expectancy reports, bids from licensed institutional buyers, then closing through an independent escrow account. The conversion step adds several weeks up front. Because the conversion deadline sits on top of all of it, term cases are the ones where waiting really does cost money. Compare the possible outcome against your other choices using our guide to whether a life settlement is worth it.
Nothing here is legal, tax or investment advice. Talk to a CPA about the tax treatment of any proceeds, and to an elder-law attorney if benefits eligibility is a concern.
Frequently Asked Questions
Can I sell an Illinois Mutual term policy without converting it?
Usually no. Term has no cash value and expires, so buyers have nothing to hold unless it converts to permanent coverage. The rare exceptions involve a severely impaired insured and a term policy with substantial guaranteed years left.
How do I find out if my term policy is still convertible?
Look for a conversion or exchange provision in the policy schedule pages, then call Illinois Mutual’s service center and ask them to confirm the last permitted conversion date and the maximum convertible amount in writing. Deadlines are set by attained age or policy year and no reminder is sent.
Do I have to take a medical exam to convert?
Generally no. That is the point of a conversion privilege: you convert at your original underwriting class without new evidence of insurability. This is why conversion is so valuable to someone whose health has declined since the policy was issued.
Should I convert first or get an offer first?
Get an indication of value first whenever the deadline allows. Converting commits you to permanent premiums, and you do not want to pay them on a policy that turns out not to be a settlement candidate. If the deadline is close, that calculus changes.
Can I convert only part of my term policy?
Many contracts permit partial conversion, subject to a minimum amount. That lets you convert enough to reach the market’s $100,000 threshold and sell that portion while letting the rest lapse. Confirm with the carrier whether your specific contract allows it.
How much would a converted term policy sell for?
It depends on the insured’s age and health, the death benefit and the premium on the new permanent policy. The federal GAO study (GAO-10-775) found sellers typically received about 10% to 35% of face value. No responsible buyer can quote a number before reviewing the actual contract and medical file.
Does Illinois Mutual have to approve the sale?
No. The carrier is not a party to the decision and its permission is not required. It processes the conversion under the contract, then records the ownership change after the settlement closes.
What should I send for a free review?
Send the policy cover page and, if you can find them, the pages showing the conversion provision. Call (305) 209-7183 for a free, no-obligation policy review. There is no cost and no commitment.
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
- How It Works Policy Options
- Education Center
- Sell My Illinois Mutual Universal Life Policy
- Sell My Illinois Mutual Group 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.