Yes — a term life policy from Investors Heritage can be sold if it qualifies, but in nearly every case it must first be converted to permanent coverage; once converted, any carrier’s policy can be sold, and the carrier’s permission to sell is not needed.
Term insurance has no cash value. There is no savings component, no surrender value, and nothing to borrow against. If you stop paying, the coverage simply ends and you receive nothing. That is the whole reason conversion matters: the conversion privilege written into most term contracts is the door between “worth nothing” and “potentially worth a substantial lump sum.”
And that door closes on a schedule almost nobody tracks. This guide is about finding your deadline before it passes. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Investors Heritage. Education only — not legal, tax, or investment advice.
In This Article
Find Your Conversion Deadline Today
Conversion deadlines expire quietly. No letter arrives. No agent calls. The right simply ends, and the policy becomes unsellable from that moment forward.
Deadlines usually take one of two forms, and some contracts use whichever comes first:
- Age-based: conversion allowed until the insured reaches a stated age — commonly somewhere between 65 and 75, depending on the contract.
- Duration-based: conversion allowed for a set number of years from issue, or through a stated policy year, sometimes shorter than the full level-premium period.
Call the servicing company and ask three questions in this order: Is my policy convertible? What is the exact last date I can convert? What permanent products can I convert into, and at what premium? Ask for the answers in writing. As of 2026, confirm all of this with the carrier — do not rely on what an agent said years ago or on a summary page from an old file.
Why Conversion Requires No New Medical Exam
The conversion privilege is valuable precisely because it does not depend on your current health. When you convert inside the window, the permanent policy is issued at your original underwriting class — the health rating you earned when the term policy was written.
That is why someone diagnosed with a serious condition at 72 can still obtain permanent coverage that no insurer would issue them fresh. It is also why conversion and life settlements intersect so often. A declining health picture increases what the settlement market will pay for a policy, while conversion is the mechanism that creates a sellable asset in the first place.
The premium, however, is set at your attained age on permanent rates. It will be materially higher than your term premium. That is the trade.
Company Background and Small-Policy Reality
Investors Heritage Life Insurance Company is based in Frankfort, Kentucky and was acquired by Aquarian Holdings in 2018. As of 2026, confirm the current ownership, servicing details, and A.M. Best rating with the carrier or A.M. Best directly.
The company’s historic specialty is pre-need funeral and final-expense insurance sold through funeral homes, which usually means small face amounts and, in the pre-need case, an assignment to the funeral provider. Be aware of what that means for you: an assigned pre-need policy generally cannot be sold at all, because the benefit is already directed elsewhere, and small final-expense coverage of $10,000 or $25,000 is below what the settlement market can transact. Converting a small term policy does not fix a small face amount.
Pine Lake works with policies of $100,000 or more in death benefit. If your term coverage is well under that, the honest answer is to keep it, let it run, or ask the carrier about lower-cost options rather than pursuing a sale.
| Situation | Can It Be Sold? | What to Do Next |
|---|---|---|
| Term, conversion window still open, $100k+ | Yes, after converting | Get the deadline in writing, then request a free review before converting |
| Term, conversion window closed | Generally no | Check riders and other policies you own |
| Term under $100,000 | Unlikely | Keep it or ask the carrier about lower-cost options |
| Pre-need policy assigned to a funeral home | No | Ask the carrier about paid-up or reduced options |
| Already-converted permanent policy | Yes, if you and the policy qualify | Send the cover page for a free review |
Do the Order of Operations Correctly
Owners often get this backwards and lose money for it. The right sequence is:
- Confirm the conversion right and deadline in writing. Nothing else matters if the window is closed.
- Get a free policy review before you convert. Send the term policy’s cover page. A specialist can tell you whether a converted policy would realistically attract offers, given the face amount and the insured’s profile. This step costs nothing and prevents you from paying a large permanent premium for a policy no one will buy.
- Convert, if it makes sense. Choose the permanent product and face amount deliberately — many contracts allow partial conversion, so you can convert only the portion that matters.
- Then pursue the settlement, if that is your goal.
Do not convert blindly under deadline pressure without a review, and do not skip conversion while waiting to “look into it later.” Both mistakes are expensive in opposite directions.
Partial Conversion Is Often the Smart Move
Many term contracts allow you to convert part of the face amount rather than all of it. That flexibility is underused.
Suppose you hold $500,000 of term and the full permanent premium would be unaffordable. Converting $250,000 may produce a permanent policy large enough to interest the settlement market at a premium you can carry for the few months a transaction takes. The remaining term coverage continues on its normal schedule until it expires.
Ask the carrier specifically whether partial conversion is permitted, what the minimum conversion amount is, and whether converting part of the policy affects the remaining term coverage. Get it in writing before you sign anything.
What Happens After Conversion
Once you own a permanent policy, the ordinary market rules apply. Buyers generally look for an insured around 65 or older (younger with significant health impairments), a death benefit of $100,000 or more, and a policy in force and current.
The process from there:
- Free review from the cover page — days.
- Documentation — 2 to 4 weeks: annual statement, in-force illustration, medical records, life-expectancy reports, HIPAA authorization.
- Offers in writing, gross and net of any commissions.
- Contracts, independent escrow, ownership change, funding, followed by a rescission window in most states.
Total: roughly 60 to 120 days. Sellers across the market have typically received about 10% to 35% of face value; the GAO study (GAO-10-775) found settlements averaging around 4 to 8 times cash surrender value, though on a freshly converted policy there is little surrender value to compare against.
If the Window Has Already Closed
If conversion has expired and the policy has no cash value, there is generally nothing to sell — and an honest advisor will tell you that in the first conversation rather than after weeks of paperwork.
What you can still do: check whether the policy includes any return-of-premium or accelerated death benefit rider, ask whether the carrier offers a continuation or renewal option (usually at sharply higher annually renewable rates), and if your health has changed significantly, ask about accelerated benefits for terminal or chronic illness, which pay from the existing policy without a sale.
And check every other policy you own. Many households hold a forgotten universal life or whole life contract that is a far better candidate than the term policy they were focused on. See what policies qualify or browse the education center. Free review: send the cover page, or call (305) 209-7183.
Frequently Asked Questions
Can I sell a term life policy without converting it?
Only rarely. Term has no cash value and typically expires without paying anything, so buyers generally require conversion to permanent coverage first. A narrow exception exists when the insured has a serious health impairment and the remaining term is long, but conversion is the normal path.
How do I find out if my policy is convertible?
Call the servicing company and ask whether the policy is convertible, the exact last date to convert, and which permanent products are available. Request the answers in writing. Do not rely on notes from when the policy was sold.
Will I need a medical exam to convert?
Normally no. That is the point of the conversion privilege — the permanent policy is issued at your original underwriting class regardless of your current health, as long as you convert inside the window.
Should I convert first or get a review first?
Get a free review first, if your deadline allows. A specialist can tell you whether a converted policy would realistically attract offers, so you do not commit to a much higher permanent premium for nothing. Do not let the deadline pass while waiting.
Can I convert only part of my term coverage?
Many contracts allow partial conversion, which can keep the permanent premium manageable while still creating a policy large enough for the settlement market. Ask the carrier whether partial conversion is permitted and what the minimum amount is.
My conversion deadline already passed. Is there anything left?
Usually not for that policy, since term without conversion and without cash value has nothing to transfer. Check for riders such as accelerated death benefits, and review any other permanent policies in the household, which are often better candidates.
What do I send to get started?
The policy cover page — issuing company, policy number, face amount, and issue date. That single page is enough for a free, no-obligation review. Call (305) 209-7183 if you would rather talk it through.
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
- What Is An In Force Illustration
- Education Center
- Is A Life Settlement Worth It
- Sell My Investors Heritage Whole Life Policy
- Sell My Investors Heritage 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.