Yes — a term life policy from any carrier can lead to a sale, but almost always only after it has been converted to permanent coverage; the buyer purchases the contract and the insurer’s permission is never the barrier. The barrier is the conversion privilege, and conversion privileges expire quietly, with no reminder from anyone.
Before applying that to your policy, confirm the issuing company. Lincoln Heritage Life Insurance Company, based in Phoenix, is a final expense specialist whose coverage is marketed through the Funeral Advantage program in association with the Funeral Consumer Guardian Society — small-face, simplified-issue whole life, often with a graded or modified death benefit in the first years. It is a separate company from Lincoln Financial Group, whose term products are conventional level term contracts with conversion privileges. Verify the 2026 A.M. Best rating and product details with the carrier printed on your policy.
This guide explains what to ask, when the deadline hits, and what a converted policy would need to be worth selling. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Lincoln Heritage or Lincoln Financial.
In This Article
- Confirm the Carrier Before You Do Anything Else
- Term Has Nothing a Buyer Can Purchase
- What the Conversion Privilege Gives You
- The Deadline Passes Without a Warning Letter
- Cost, Partial Conversion, and Who Pays the Premium
- Run Both Clocks at Once
- The Size Test Still Applies After Conversion
- Documents, Timing, and What Happens at Closing
- Frequently Asked Questions
Confirm the Carrier Before You Do Anything Else
Check the issuing company name on the cover page and the premium notice. If the policy arrived with Funeral Advantage or Funeral Consumer Guardian Society material, you are dealing with Lincoln Heritage, whose core product is small whole life rather than convertible term. If the policy shows a level term period of 10, 15, 20, or 30 years and a face amount of $100,000 or more, it likely came from a different insurer, quite possibly Lincoln Financial.
This is the most common confusion in this corner of the market, and it changes who you call, what questions apply, and whether a settlement is realistic at all. Two minutes with the cover page settles it.
Term Has Nothing a Buyer Can Purchase
Term life is protection for a defined number of years and nothing else. No account value, no cash surrender value, nothing to borrow against. When the level term period ends, premiums usually jump sharply or the coverage terminates.
A settlement buyer needs a contract that will still be in force whenever the insured dies. A term policy scheduled to expire in a few years fails that test outright, which is why term standing alone has no secondary market. The value, when it exists, is locked inside the conversion privilege.
What the Conversion Privilege Gives You
A conversion privilege lets you exchange term coverage for a permanent policy with the same insurer without any new medical underwriting, at your original health class. For someone whose health has declined, that is extraordinarily valuable — it turns an uninsurable person into the owner of a permanent contract.
Deadlines come in two forms and often both apply: duration-based (convertible only during the first several years of the term) and age-based (convertible only until the insured reaches a stated age, such as 65 or 70). Whichever arrives first typically controls. The provision is in your contract; confirm the exact date with the carrier and get the answer in writing.
The Deadline Passes Without a Warning Letter
This deserves its own point because it costs people real money every year. Carriers are not generally required to notify you that a conversion window is closing, and most do not. Owners discover the privilege has expired only when they finally call to use it.
If the insured is in their 60s, has any meaningful health condition, and holds convertible term, the single most useful action available this week is a phone call to the service number asking: is this policy still convertible, and until what date? Do that before reading anything else about settlements, because if the answer is no, the rest is academic.
| Stage | Typical Timing | The Risk If You Wait |
|---|---|---|
| Confirm conversion deadline | One phone call | The privilege may already be expired |
| Free policy review | Days | Converting blind to an expensive premium |
| Convert to permanent coverage | Weeks to issue | Deadline closes and the option is gone |
| Settlement process | 60 to 120 days | A lapse mid-process ends the transaction |
Cost, Partial Conversion, and Who Pays the Premium
Converted permanent coverage is priced at the insured’s attained age, so a conversion at 69 costs far more than the term premium ever did. Carriers also limit which permanent products are available for conversion, and many allow partial conversion — turning only a portion of the face amount permanent and letting the rest lapse.
Partial conversion is worth asking about specifically. If the plan is to convert and then explore a sale, you only need to carry the premium until a transaction closes, at which point the buyer assumes premium payments. Get the conversion quote in writing, including eligible products and whether a partial conversion is permitted.
Run Both Clocks at Once
The efficient sequence: confirm the conversion deadline and quote with the carrier, request a free policy review while the term policy is still in force so you learn whether a converted policy would realistically attract offers, then convert if the answer is promising or the deadline forces it, and complete the settlement on the permanent policy.
Converting first without asking can leave you paying for permanent coverage you did not want. Asking first and letting the deadline lapse leaves you with nothing to work with. Handle both together — see what policies qualify for the criteria a converted policy has to meet.
The Size Test Still Applies After Conversion
A converted policy faces the same screen as any other: death benefit of $100,000 or more, insured typically age 65 or older (younger with significant health conditions), policy past its contestability period, and premiums that make economic sense against the death benefit.
Converting a $25,000 term policy does not make it sellable — buyers’ fixed costs simply do not work at that size. If your coverage is small final expense insurance, keep it, reduce it, or surrender it as circumstances dictate. The education center covers those alternatives.
Documents, Timing, and What Happens at Closing
For a review, start with the policy cover page — insurer, policy number, face amount, issue date, and term length. After conversion you will need the new policy’s annual statement and an in-force illustration, plus a HIPAA authorization so buyers can estimate life expectancy.
The settlement itself typically runs 60 to 120 days from application to funded payment. Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, about 4 to 8 times cash surrender value. Funds should be held by an independent escrow agent until the insurer confirms the transfer, and most states provide a rescission window afterward. Call (305) 209-7183 for a free policy review. Education only, not legal, tax, or investment advice.
Frequently Asked Questions
Can I sell a term life policy?
Rarely as term. Term has no cash value and expires on a set date, so there is normally nothing for a buyer to acquire. The usual path is converting to permanent coverage first, then evaluating the permanent policy for a settlement.
Is Lincoln Heritage the same company as Lincoln Financial?
No. Lincoln Heritage Life Insurance Company is a Phoenix-based final expense specialist associated with the Funeral Advantage program, and it is unrelated to Lincoln Financial Group. Check the issuing company name on your policy cover page before assuming which product you hold.
How do I find out if my term policy is still convertible?
Read the conversion provision in the contract, then call the carrier’s service number and ask directly whether the privilege is open and until what date. Request the answer in writing. Deadlines are age-based, duration-based, or both, and they pass without notice.
Does the carrier have to approve the sale?
No. Once you own an individual permanent policy it is your property and you may transfer it. The buyer purchases the contract from you and the carrier records the ownership and beneficiary change after closing.
Do I need to be unhealthy to convert?
No. Conversion is guaranteed-issue at your original health class with no new medical exam. Health matters on the settlement side, where a shorter estimated life expectancy generally supports a higher offer.
Can I convert only part of my coverage?
Many carriers allow partial conversion, turning a portion of the face amount permanent while the rest lapses. That can reduce the premium you carry before a transaction closes. Ask the carrier specifically, since practices vary.
Who pays the premium after a sale?
The buyer does. Once ownership transfers and escrow releases your payment, the new owner assumes all future premium obligations. Until closing, though, you must keep the policy in force or there is nothing to transfer.
What do I send for a free review?
The policy cover page showing the insurer, policy number, face amount, issue date, and term length. If you already know the conversion deadline, include it. Call (305) 209-7183 if the window is close to closing.
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
- Is A Life Settlement Worth It
- Education Center
- Sell My Lincoln Heritage Whole Life Policy
- Sell My Physicians Mutual Term 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.