Yes — a Nassau term life policy can be sold, with one condition that decides almost every case: the conversion privilege usually has to still be open. Term insurance has no cash value, so the standard path is to convert it into permanent coverage and then sell the permanent policy. Once that is done, the ordinary rule applies — the buyer purchases the contract, and the carrier’s permission is not needed.
The problem is the calendar. Conversion privileges expire silently. They are usually capped by the insured’s age or by a number of policy years, and no one sends a reminder the week before. Owners routinely discover the deadline passed two years ago, at which point the term policy has no monetizable value at all.
Nassau Financial Group acquired The Phoenix Companies in 2016, so many term policies serviced by Nassau were originally issued by Phoenix. Here is how to find out, quickly, whether yours can still be converted.
In This Article
Check Your Conversion Deadline Today
Before reading anything else, do this: find the conversion or exchange provision in your policy, then call the service number on your statement and ask two questions in writing. First, is this policy currently convertible? Second, what is the last date on which conversion may be elected, and to which permanent products?
Typical limits look like “convertible until the insured’s 65th or 70th birthday” or “convertible during the first 10 or 20 policy years,” and the earlier of the two usually governs. Some carriers also narrow the menu of products available for conversion over time. Get the answer in writing and note the date on your calendar. Everything else on this page depends on it.
Why Term Alone Is Rarely Sellable
Term insurance is a pure promise for a fixed period. There is no account value, no surrender value, nothing to cash in. If you stop paying, it ends. If you keep paying to the end of the level period, premiums typically jump to steep annually renewable rates and most people drop the coverage.
A settlement buyer needs a policy that can be carried for the insured’s remaining lifetime. A term policy that expires at 80 cannot deliver that unless it can be converted into permanent coverage. That is why convertibility, not premium or carrier, is the gate. See what policies qualify for the full screen.
The One Exception: Serious Health Impairment
There is a narrow case where a term policy draws interest without conversion, and it depends on the numbers lining up. If the insured has a serious health impairment and the level term period still has years to run, the expected benefit may arrive while the policy is still in force. That can make the contract purchasable as written.
This is fact-specific and not something to assume. It is also the situation where families should first check whether the policy carries an accelerated death benefit rider, which lets a qualifying terminally or chronically ill insured access part of the death benefit directly from the carrier. That is often faster than any sale.
| Term Policy Status | Can It Be Sold? | What to Do Now |
|---|---|---|
| Still convertible, insured is senior | Usually yes, after conversion | Get the conversion quote and a free review before converting |
| Convertible but insured is young and healthy | Unlikely to draw offers | Keep the coverage or let it run its course |
| Conversion window has expired | Generally no | Check for an accelerated death benefit rider; review other policies |
| Serious health impairment, years left in the level period | Sometimes, as written | Ask about accelerated benefits first, then request a review |
| Face amount under $100,000 | Generally no | Total up all policies before assuming it is too small |
What Conversion Actually Costs
Conversion means no new medical exam — that is the valuable part, especially if health has changed since the policy was issued. But the new permanent policy is priced at the insured’s attained age, so the premium is far higher than the term premium you have been paying. A 74-year-old converting a term policy is buying permanent coverage at 74-year-old rates.
That is exactly why the review should come before the conversion, not after. The realistic question is whether the converted policy would have secondary-market value that justifies the conversion premium and the transaction. Send the term policy’s cover page and the conversion quote for a free review, and get an honest answer before writing a check.
Nassau, Phoenix, and Who Services Your Term Policy
Nassau Financial Group, headquartered in Hartford, acquired The Phoenix Companies in 2016, bringing Phoenix Life Insurance Company and PHL Variable Insurance Company into the group. Term contracts issued years ago under the Phoenix name are therefore serviced within Nassau today, and conversion requests route there.
One item every Nassau or Phoenix policyholder should verify: PHL Variable Insurance Company, a subsidiary in the Nassau group, was placed into rehabilitation in Connecticut in 2024. A rehabilitation proceeding is a court-supervised process run through the state insurance department, and such orders can temporarily restrict things like cash surrenders, policy loans, and ownership transfers while the plan is worked out. If your contract was issued by PHL Variable, confirm the current status of that proceeding and what it permits, as of 2026, with the company and the Connecticut Insurance Department before you make any move. Policies issued by other companies in the group are separate legal entities.
Identify the issuing company on your declarations page and confirm servicing, conversion options, and the company’s current financial-strength rating with the carrier as of 2026. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau, Phoenix Life, or PHL Variable.
The Sequence, Step by Step
- Confirm convertibility and the deadline in writing. Same week, not next month.
- Request the conversion quote — which permanent products are available and at what premium.
- Get a free policy review using the term cover page and that quote, to gauge whether a converted policy would be a realistic settlement candidate.
- Convert inside the window if the answer supports it. The new individual permanent policy is issued to you.
- Run the settlement on the converted policy — documentation, life-expectancy underwriting, offers, escrow, ownership change. Roughly 60 to 120 days on top of the conversion. See how the process works.
Realistic Expectations
Buyers generally want a death benefit of $100,000 or more and an insured in their senior years. Federal research (GAO-10-775) found sellers typically received about 10% to 35% of face value; because a freshly converted policy has virtually no cash value, the multiple-of-surrender-value frame is not meaningful here.
Be prepared for the answer to be no. A healthy insured with a modest term policy and an expensive conversion quote is usually better off either keeping the term coverage or letting it end when the need does. An honest “this will not work” is worth more than an expensive conversion that leads nowhere. Is a life settlement worth it covers the judgment call.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Nassau Financial Group, Nassau Life Insurance Company, Phoenix Life, or PHL Variable. We work with policies of $100,000 or more in death benefit. For a free, no-obligation policy review, send the policy cover page or call (305) 209-7183. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Can I sell a term life policy that has no cash value?
Usually only after converting it into permanent coverage, because a buyer needs a policy that can be kept in force for the insured’s lifetime. The exception is a policy on an insured with a serious health impairment where the level term period still has years to run. Convertibility is the deciding factor in most cases.
How do I find out if my Nassau term policy is still convertible?
Call the service number on your statement and ask, in writing, whether the policy is currently convertible, what the last date to convert is, and which permanent products are available. The conversion provision in your policy documents states the rule, but the carrier’s written confirmation is what you want on file.
Will converting require a medical exam?
No. The value of a conversion privilege is that it does not require new evidence of insurability. That matters most for an insured whose health has changed since the policy was issued, since new individual coverage might be unaffordable or unavailable.
Why is the converted premium so much higher?
The permanent policy is priced at the insured’s current attained age, not the age at which the term policy was issued. That is why a review before converting is important — the question is whether the resulting policy would have enough secondary-market value to justify the cost.
My policy says Phoenix. Where do I send the conversion request?
Nassau Financial Group acquired The Phoenix Companies in 2016, so Phoenix-issued contracts are serviced within the Nassau group. Use the service address and phone number on your most recent statement, and confirm the routing with the carrier as of 2026.
Does the carrier have to approve a sale after I convert?
No. Once you own an individual permanent policy, the buyer purchases the contract from you and the carrier is not a party to the decision. It records the ownership and beneficiary change after closing.
How long will the whole thing take?
Conversion has to be elected inside the policy’s window, which may be days or years away depending on your contract. A settlement on the converted policy typically runs another 60 to 120 days from application to funded payment.
What do I send for a free review?
The term policy cover page — insurer, policy number, face amount, issue date — plus the conversion quote if you already have it. There is no obligation, and if the answer is that conversion will not pay off, you will be told that.
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
- How It Works Policy Options
- Is A Life Settlement Worth It
- How Much Can I Get For My Life Insurance Policy
- Sell My Nassau Life Whole Life Policy
- Sell My Nassau Life 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.