Yes — a Midland National term life policy can be sold in a life settlement, but in almost every case it has to be converted to permanent coverage first, and the conversion privilege expires. Your right to sell is not the obstacle: a policy is personal property, the buyer purchases the contract from you, and the insurer’s permission is not required. The obstacle with term is that pure term coverage eventually ends, which leaves a buyer nothing durable to hold.
Midland National Life Insurance Company started in 1906 as Dakota Mutual Life in Watertown, South Dakota, and is headquartered today in West Des Moines, Iowa, as a member of Sammons Financial Group — a parent that is employee-owned through an ESOP. That corporate stability means the servicing company on your term policy is probably the same one that issued it, unlike carriers whose retail blocks were sold or spun off (verify current details with the company as of 2026).
This guide explains the conversion privilege, why its deadline is the most urgent fact in your file, and the order in which to take the steps. Pine Lake Life Solutions is not affiliated with Midland National or Sammons Financial Group.
In This Article
Why Pure Term Rarely Draws an Offer
Term insurance is protection for a defined number of years and nothing else. There is no cash value, and when the level period ends the premium usually converts to an annually renewable rate that escalates steeply before coverage stops altogether.
A settlement buyer is acquiring a future death benefit and taking on the obligation to keep paying for it. A policy that expires in a handful of years, or whose renewal premiums outrun the value of the benefit, does not support that trade. That is why straight term, standing alone, generally cannot be sold.
The way through is the conversion privilege: a contractual right in most term policies to exchange the term coverage for a permanent policy from the same insurer with no new medical underwriting. Convert, and the resulting permanent contract can be evaluated like any other. That is the route term settlements almost always take.
The Four Things Your Conversion Provision Tells You
Everything you need is in the policy language:
- When it expires. Conversion rights typically end at a stated attained age, at the close of the level term period, or after a fixed number of policy years — whichever comes first. Once gone, it does not come back.
- What you may convert into. Carriers restrict conversions to a defined set of permanent products available at the time, which may be narrower than the full lineup.
- How much may be converted. Some contracts permit partial conversion of the face amount, which can keep the new premium manageable.
- What it will cost. Your original underwriting class carries forward, but pricing is set at your current age, so the permanent premium will be far higher than the term premium.
The health point is the important one. Conversion does not require you to be insurable. Someone whose health has changed sharply since issue may be unable to buy new coverage anywhere yet still holds an unconditional right to convert.
Confirm the Deadline in Writing, Today
Call the policyholder service number on your premium notice and ask them to confirm in writing four items: whether the policy is convertible; the exact date the conversion privilege expires; which permanent products are available for conversion; and whether partial conversion is permitted.
Get it in writing. Verbal answers from a call center are not something to build a decision on, and this is a date with no second chances.
Then work backward. A settlement review runs 60 to 120 days end to end, and the conversion has to be processed before that clock even starts. A deadline that looks like plenty of runway on the calendar is often tighter than it appears once carrier processing time is added.
| Question to Ask the Carrier | Why It Matters |
|---|---|
| Is this policy convertible? | Determines whether a settlement is possible at all |
| What is the exact conversion expiration date? | The single most time-critical fact; the right disappears permanently |
| Which permanent products can I convert into? | The menu may be narrower than the carrier’s full lineup |
| Is partial conversion allowed, and at what premium? | Converting part of the face amount can keep the new premium manageable |
Do the Review Before the Conversion
Sequence matters, because converting commits you to a much larger permanent premium.
First, get a free review while the policy is still term. That review weighs the insured’s age and health, the death benefit, the conversion terms, and the projected cost of the resulting permanent policy — and gives you a candid read on whether the converted contract would attract a meaningful offer.
Second, only if the read is encouraging, file the conversion with Midland National. Third, complete the settlement on the new permanent contract.
Reversing that order is how people end up holding an expensive permanent policy they never wanted. Have the conversation before you sign the conversion form.
What to Gather
Start with the policy cover page: issuing company, policy number, face amount, issue date and level term period. That single page is enough for a free review.
Also pull out the conversion provision from the contract itself, your most recent premium notice (which carries the current premium and the service phone number), and the rider schedule. Riders matter more on term than people expect — waiver of premium, accelerated death benefit, and term riders attached to a base policy can each change the analysis.
After conversion, the paperwork looks like any permanent policy: an annual statement and an in-force illustration. The sale then closes with a change of ownership, typically an absolute assignment on Midland National’s own current form, plus a HIPAA authorization so a life expectancy estimate can be prepared.
What a Converted Term Policy Might Bring
Once converted, the contract prices like any permanent policy. The GAO’s market study (GAO-10-775) found sellers typically received about 10% to 35% of face value and roughly 4 to 8 times cash surrender value — though a newly converted policy has almost no cash value, so the surrender comparison is not the meaningful one. For term, the real comparison is an offer versus nothing at all.
The variables that matter most are the insured’s age and health, the size of the death benefit, and the premium needed to keep the converted policy in force. Larger face amounts and shorter life expectancy estimates help the most.
Realistically, small term policies and healthy insureds in their fifties seldom clear the threshold. Face amounts of $100,000 or more with an insured around 65 or older, or younger with significant health conditions, are where term conversions actually work.
If a Sale Is Not Available
The remaining options are to keep paying, convert and keep the permanent coverage for your own reasons, reduce the face amount to something sustainable, or let the policy lapse. There is no cash surrender value to fall back on — see how cash surrender value works for why permanent policies differ on this point.
What not to do is let the date pass unexamined. Nobody sends a reminder when a conversion privilege expires; the coverage simply becomes unsalable and eventually ends.
Send the policy cover page for a free review, or call (305) 209-7183 to talk through timing. Background: what policies qualify for a life settlement and the education center. For permanent Midland National coverage, see selling a Midland National whole life policy or a Midland National universal life policy.
Frequently Asked Questions
Can a term policy with no cash value be sold?
Not usually in its term form, because there is no lasting death benefit for a buyer to acquire. The standard path is to use the conversion privilege to exchange it for permanent coverage, then evaluate that policy for a settlement. Whether it works depends on the conversion terms and the insured’s age and health.
How do I find out whether my Midland National term policy is convertible?
Read the conversion provision in the contract, then call the service number on your premium notice and ask for written confirmation of convertibility, the exact expiration date, the available permanent products and whether partial conversion is allowed. Insist on the answer in writing.
Will I need a medical exam to convert?
No. A conversion privilege exists precisely so you can move from term to permanent coverage without new underwriting, using your original risk class. The premium is recalculated at your current age, so expect it to be substantially higher than the term premium.
Should I convert first and then look for a buyer?
No — get the free review first. Conversion locks you into a much larger permanent premium, so you want a candid read on whether the converted policy would draw an offer before you commit. The review costs nothing and takes only a few days.
What happens if the conversion window closes?
The right is gone permanently, and the policy generally becomes unsalable. Your remaining choices are to keep paying renewal rates, reduce the coverage, or let it lapse with nothing paid back. That is why confirming the expiration date is the first thing to do.
Does Midland National have to agree to a sale?
No. A life insurance policy is personal property that its owner may transfer, and the buyer purchases the contract from you. The company records the change of owner and beneficiary once the transaction closes and cannot veto it.
How long does everything take?
Budget 60 to 120 days for the settlement itself, plus the carrier’s processing time for the conversion beforehand. If your conversion deadline is within a few months, start now rather than waiting for the anniversary.
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
- Cash Surrender Value Life Insurance
- Education Center
- Sell My Midland National Whole Life Policy
- Sell My Midland National 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.