A level term policy has no cash value, no account value, and a fixed expiration date. There is nothing for a secondary market buyer to purchase, because the contract is designed to end while the insured is still alive. So the short answer for an Ohio National term policy is that the policy as it stands today almost certainly cannot be sold.
The longer answer is more useful. Most term contracts contain a conversion privilege, which lets the owner exchange the term policy for a permanent policy without new medical underwriting. That right is the only thing of value in a term contract, and it expires on a date buried in the policy language. For Ohio National policyholders there is a second complication: the carrier has been renamed and its product lineup has been rebuilt, so the answer to what your term converts into is not the same answer it would have been five years ago. This page covers both. Pine Lake Life Solutions offers education and a free, no-obligation policy review. We do not purchase policies and we are not affiliated with Ohio National, AuguStar, or Constellation Insurance.
In This Article
- The Conversion Right Is the Only Asset in a Term Policy
- Why the Rebrand Changed What Your Term Converts Into
- Finding Your Conversion Deadline
- What Conversion Costs, and Why It Affects Value
- After Conversion: How the Permanent Policy Is Priced
- When Letting the Term Expire Is the Right Call
- What to Do This Month
- Frequently Asked Questions
The Conversion Right Is the Only Asset in a Term Policy
Institutional buyers in the life settlement market pay for a future death benefit they expect to collect. A term policy cannot deliver one, because it terminates on a stated date and the premium was priced on the assumption that most insureds outlive it. There is also no cash value to surrender. Stop paying and the coverage simply ends after the grace period.
The conversion privilege changes that. It allows an exchange into permanent coverage with no health questions and no exam, which is precisely what an insured with declining health cannot obtain any other way. The carrier already accepted the mortality risk when it issued the term policy, and the conversion right holds it to that acceptance.
Three contract details determine what the privilege is worth: the deadline, the permanent products available at conversion, and whether the original underwriting class carries over. All three are policy-specific and none can be read off a marketing page. Get them in writing from the carrier.
Why the Rebrand Changed What Your Term Converts Into
Conversion privileges typically allow an exchange into the permanent products the carrier offers at the time of conversion, not the products that existed when the term policy was written. That is a standard provision, and it is why the corporate history here matters more than usual.
Ohio National completed a sponsored demutualization on March 31, 2022, becoming an independently managed subsidiary of Constellation Insurance. Then, effective October 2, 2023, The Ohio National Life Insurance Company was renamed AuguStar Life Insurance Company and Ohio National Life Assurance Corporation was renamed AuguStar Life Assurance Corporation. Constellation announced the repositioning on July 17, 2023 and described the new AuguStar Life lineup as indexed universal life, indexed whole life, term, and bank-owned life insurance, distributed through a national network of direct agents and independent marketing organizations.
Read that lineup carefully. It is built around indexed products. A term owner who assumed conversion into a traditional participating whole life contract may find the menu looks different than expected. That does not make conversion a bad idea, but it does mean you should ask what is actually available before you plan around it.
Finding Your Conversion Deadline
Conversion deadlines are normally expressed as an attained age, the end of the level term period, or whichever of the two comes first. Two clocks run simultaneously and the earlier one controls. A 63-year-old with a 20-year term running to age 83 may nonetheless face a conversion cutoff in the late sixties, which converts a twenty-year horizon into a five-year one.
Since Ohio National term products are no longer marketed under that brand, do not rely on old brochures or third-party summaries. Call AuguStar’s life and disability income customer service line at 800-366-6654, staffed 8:30 a.m. to 5 p.m. Eastern, Monday through Friday, and request four items in writing: the exact conversion end date, the permanent products currently available for conversion, whether your original rate class carries over, and whether partial conversion of the face amount is permitted. Mail can be directed to P.O. Box 237, Cincinnati, OH 45201-0237, and servicing forms are available after logging in at augustarfinancial.com.
Put the date on a calendar with a reminder six months ahead of it. Conversion deadlines do not extend, and there is no remedy after they pass.
| Question to ask AuguStar | Why it matters |
|---|---|
| What is my exact conversion end date? | It is the hard deadline; there is no remedy after it passes |
| Which permanent products are available to me at conversion? | The menu changed after the 2023 rebrand |
| Does my original underwriting class carry over? | Determines whether the converted premium is affordable |
| Is partial conversion of the face amount permitted? | Lowers premium while preserving a permanent contract |
| What is the converted premium at my current age? | Directly reduces what a buyer could offer later |
What Conversion Costs, and Why It Affects Value
Converting is not free. The permanent policy is priced at the insured’s attained age, so the premium is far higher than the term premium was. That matters directly to any later valuation, because a buyer in the secondary market is modeling the premium it must pay to keep the contract in force against the death benefit it expects to collect. High required premium reduces what a buyer can offer while still meeting its return target.
This is why sequence matters. Understand roughly what a converted policy would be worth before paying the first converted premium, not after. Owners who convert the full face amount, pay for two years, and then discover the economics do not support a sale have spent money for nothing.
Partial conversion, where permitted, is often the smarter structure. Converting a portion of the face amount keeps the premium manageable while preserving a permanent contract that can be evaluated. Whether it is available depends on your policy, so ask.
After Conversion: How the Permanent Policy Is Priced
Once converted, the policy is evaluated like any other permanent contract. The insured’s age and current medical records set the expected holding period. The required premium sets the ongoing cost to the buyer. The face amount determines whether the transaction is large enough to draw competitive bids after costs. Carrier financial strength is the fourth input.
On that last point, A.M. Best affirmed a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of a+ for AuguStar Life Insurance Company and its subsidiary AuguStar Life Assurance Corporation on November 13, 2025, with a stable outlook. Parent Constellation Insurance, Inc. carries a Long-Term Issuer Credit Rating of bbb+ (Good). A stable A rating is solid and does not create a pricing discount of the kind a distressed carrier would.
None of this guarantees an offer. Buyers underwrite each case individually, decline many, and no one can promise eligibility or a specific amount.
When Letting the Term Expire Is the Right Call
If the insured is in good health and the term still has years to run, converting early usually wastes money. The conversion right is not consumed by waiting, only by the deadline, so healthy insureds should generally let the cheap term coverage run and revisit the question as the cutoff approaches.
If the family, a business, or a dependent still needs the death benefit, the question is not whether to sell but how to keep coverage affordable. Converting a reduced face amount often solves that without any sale involved.
And if the arithmetic simply does not work, letting the term lapse is a legitimate outcome. A review that concludes there is nothing worth doing has still saved you from a bad decision. Any party that tells you a term policy is definitely worth money before seeing the contract and the medical picture is not giving you an assessment.
What to Do This Month
Call AuguStar and get the conversion end date in writing. That one item determines whether you have a decision to make at all. Then gather the policy pages showing the conversion provision and the face amount, and note any material change in the insured’s health since issue.
Pine Lake Life Solutions will review those documents with you at no cost and with no obligation. We do not purchase policies, we are not affiliated with or endorsed by Ohio National, AuguStar, or Constellation Insurance, and we cannot guarantee that any policy will qualify or produce a particular amount. Confirm tax treatment with your own CPA or tax attorney.
Frequently Asked Questions
Can an Ohio National term policy be sold without converting it?
Almost never. A level term contract expires on a fixed date and carries no cash value, so there is no lifetime death benefit for a buyer to purchase. The conversion privilege is what turns term coverage into a permanent policy that can be evaluated. Request your specific conversion deadline from AuguStar before assuming anything is possible.
Who do I call about an Ohio National term policy in 2026?
AuguStar. The Ohio National Life Insurance Company was renamed AuguStar Life Insurance Company effective October 2, 2023, and Ohio National Life Assurance Corporation became AuguStar Life Assurance Corporation the same day. The published life and disability income service line is 800-366-6654, open 8:30 a.m. to 5 p.m. Eastern, Monday through Friday.
What can my term policy convert into now?
That depends on the products the carrier offers at the time of conversion. When Constellation announced the rebrand on July 17, 2023, it described AuguStar Life’s lineup as indexed universal life, indexed whole life, term, and bank-owned life insurance, sold through direct agents and independent marketing organizations. Confirm your available options in writing with the carrier.
Will I need a medical exam to convert?
A conversion privilege normally permits the exchange without new medical underwriting, which is what makes it valuable to an insured whose health has changed. What varies is the rate class applied and which products are available. Ask both questions before filing conversion paperwork, since the answers determine whether the converted premium is manageable.
Does Pine Lake buy term or converted policies?
No. Pine Lake Life Solutions does not purchase policies and has no affiliation with Ohio National, AuguStar, or Constellation Insurance. We provide education and a free, no-obligation policy review so you can identify your conversion deadline and understand your options while there is still time to use them.
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Related Reading
- Sell My Ohio National Whole Life Policy
- Sell My Ohio National Universal Life Policy
- Sell My Ohio National Indexed Universal Policy
- How Do Life Settlements Work
- Life Insurance After 65
- How Health Affects Life Settlement Value
- Is A Life Settlement Right For You
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.