Yes – a National Western Life term policy can be sold in a life settlement, with one condition that decides almost every case: the term policy usually has to be convertible to permanent coverage, and the conversion window has to still be open. The right to sell is not in question. A policy is your property, and the buyer purchases the contract from you; National Western’s permission is not required and the carrier is not a party to the decision. The obstacle is economic, not legal – a term policy that will expire before the insured does is worth nothing to a buyer.
National Western Life has been based in Austin, Texas since 1956 and became part of Prosperity Life Group through S. USA Life Insurance Company in 2024. As of 2026, verify the servicing entity and the policyholder service number on the carrier’s own website before you request anything – the change of ownership at the parent level does not alter your contract, but it can change where the forms go.
This guide is about a deadline. Conversion privileges expire quietly, with no reminder letter, and once they close the policy is generally unsellable. Read the next two sections before you do anything else.
In This Article
Why Term Alone Has No Resale Value
Term life is rented coverage. You pay for a defined stretch of years – 10, 15, 20, 30 – and if the insured is alive at the end, the policy simply stops. There is no cash value, no surrender value, and nothing to borrow against. Roughly speaking, that is the point: term is the cheapest way to buy a large death benefit precisely because most policies never pay a claim.
A settlement buyer is purchasing a future death benefit. If the term period ends in six years and the insured’s life expectancy is fifteen, there is nothing to buy. The exception is a term policy that can be turned into permanent coverage, because permanent coverage does not expire – and that conversion right is written into many term contracts.
The Conversion Privilege Is the Whole Game
A conversion privilege lets you exchange the term policy for a permanent policy from the same carrier without new medical underwriting. Your original health rating carries over. That matters enormously if health has declined, because the insured could never buy that coverage again on the open market.
Conversion rights are limited two ways, and your contract will use one or both:
- By age – convertible until the insured reaches a stated attained age, commonly somewhere in the 65 to 70 range depending on the product.
- By duration – convertible only during the first several policy years, or until the end of the level-premium period.
Carriers also limit which permanent products you may convert into, and that list can change over time. Call the servicing company, ask for your policy’s exact conversion deadline and the current list of eligible conversion products, and get the answer in writing. Do not rely on what an agent told you in the 1990s.
How a Convert-Then-Sell Transaction Actually Works
The sequence matters. In most cases:
- A settlement review confirms the policy is a plausible candidate and the conversion right is open.
- Medical records are collected and life expectancy is estimated.
- A buyer indicates what it would pay for the converted permanent policy.
- Only then do you exercise the conversion, so you are not paying for permanent coverage you do not want.
- The converted policy is sold, ownership transfers, and escrow releases your funds.
Timing pressure is real. If the conversion deadline is weeks away, the sequence has to compress or the opportunity closes. If your deadline is inside the next 90 days, say so on the very first call.
| Situation | Can it be sold? | What to do next |
|---|---|---|
| Convertible term, window open, insured in senior years | Often yes | Get the conversion deadline in writing, then request a review |
| Convertible term, window closes within 90 days | Yes, but urgent | Say so on the first call so the review can be compressed |
| Convertible term, insured in 50s and healthy | Usually not yet | Protect the conversion right and revisit later |
| Conversion right expired | Generally no | Check riders; consider keeping the coverage |
| Non-convertible term | No | Check accelerated benefit riders |
Health Matters More Here Than With Any Other Policy Type
With permanent policies, buyers weigh premium load, cash value, and life expectancy together. With a term conversion, life expectancy dominates. A converted policy starts with no cash value, so the buyer will carry the full premium from day one – which only works if the projected payout is not too far away.
That is why term settlements cluster around insureds who are older or who have had a significant change in health since the policy was issued. A serious diagnosis does not make the policy worth less; in this market it typically makes it worth more, because the expected holding period shortens. If the insured is in excellent health at 62 with a conversion right open until 70, the honest answer is often “wait, and keep the conversion right alive.”
See which policies qualify for the general screening criteria.
Documents to Have Ready
Start with the policy cover page – insurer, policy number, face amount, issue date, insured. For a term policy the follow-up list is short but specific:
- The conversion provision itself, from the contract, plus any endorsement that modified it.
- Written confirmation from the servicing company of the conversion deadline and eligible products.
- The current annual premium and the premium schedule for the remaining level period.
- Quotes for the converted permanent policy, so the post-conversion premium is known before you commit.
- A HIPAA authorization for medical records.
If the Conversion Window Has Already Closed
It happens, and it is worth saying plainly: a non-convertible term policy, or one whose conversion right has expired, generally cannot be sold. There is no workaround, and anyone who tells you otherwise deserves a hard look.
What is still available:
- Accelerated death benefit riders. Many term contracts include a terminal illness or chronic illness rider that pays part of the death benefit early. Check the rider list before assuming there is nothing there.
- Keep paying, if you can. A death benefit you are still paying for is worth more than one you dropped.
- Re-shop the coverage if health permits, though a decline in health usually forecloses this.
A free review will tell you which of these applies without any commitment. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of National Western Life Insurance Company or Prosperity Life Group. To find out whether your policy is a candidate, send the policy cover page for a free policy review, 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 policy without converting it?
Rarely. Buyers occasionally consider a term policy where the insured’s life expectancy is clearly shorter than the remaining term, but the standard path is conversion to permanent coverage first. Assume conversion is required unless a reviewer tells you otherwise.
How do I find my conversion deadline?
Call the servicing company for your National Western policy and ask for the exact conversion expiration date and the list of permanent products currently available for conversion. Request it in writing. As of 2026, confirm the correct service number on the carrier’s own website first.
Does converting require a new medical exam?
No. That is the entire value of a conversion privilege – the permanent policy is issued at your original underwriting class with no new medical evidence. This is why the right is so valuable to someone whose health has declined.
Will the premium go up after conversion?
Yes, usually substantially, because permanent coverage costs more than term. That is expected in a convert-then-sell transaction, since the plan is for the buyer to take over premium payments after closing rather than for you to carry the new premium long term.
Does National Western have to agree to the sale?
No. The carrier records the change of ownership and beneficiary once the forms are filed, but it does not approve or deny the underlying decision. A policy is transferable property, and that has been settled American law for over a century.
How long does a term conversion plus settlement take?
Plan on 60 to 120 days overall, with conversion adding administrative time inside that window. Medical record retrieval is usually the longest single step, so authorize it early.
What if my term policy is only $75,000?
It probably will not attract offers. The market generally focuses on death benefits of $100,000 or more because the fixed costs of underwriting and closing are the same regardless of size. Look at riders and keep-the-coverage options instead.
How do I get an answer on my specific policy?
Send the policy cover page for a free policy review or call (305) 209-7183. Pine Lake is not affiliated with, endorsed by, or acting on behalf of National Western Life. Nothing here is legal, tax, or investment advice.
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Related Reading
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- How It Works Policy Options
- Sell My National Western Universal Life Policy
- Sell My National Western Group Life Policy
- Education Center
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.