Yes, a Pan-American Life term policy can be sold in a life settlement, but almost always with one condition attached: the policy has to be convertible, and the conversion window has to still be open. Your right to sell is not the issue. Any carrier’s policy can be sold if you and the policy qualify, and the carrier’s permission is not required. The issue with term is that a buyer will not pay much for coverage that expires on a known date and builds no value along the way.
Conversion is the bridge. Most term contracts include a privilege that lets you exchange the term coverage for a permanent policy with the same carrier without a new medical exam. Convert first, then sell the permanent policy. That is the path for the large majority of term settlements.
The catch is that conversion deadlines expire quietly. No one calls to warn you. This guide explains how to find your deadline, what to do before it passes, and what happens if it already has. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Pan-American Life Insurance Group, and nothing here is legal, tax, or investment advice.
In This Article
- Find Your Conversion Deadline This Week
- Why Term Alone Rarely Sells
- Conversion, Step by Step
- What Pan-American Life Being a Mutual Holding Company Means Here
- Group Term Through an Employer Is a Different Animal
- What Converted Coverage Is Worth in a Settlement
- If the Conversion Window Has Already Closed
- Your Next Step
- Frequently Asked Questions
Find Your Conversion Deadline This Week
Term conversion privileges are limited two ways, and your contract will use one or both. A duration limit ends conversion after a set number of policy years. An age limit ends it when the insured reaches a stated age, often somewhere in the 60s or 70s. Whichever comes first wins.
The deadline is stated in your policy’s conversion provision, but the fastest way to get a straight answer is to call the service number on your Pan-American Life premium notice and ask three questions: is this policy convertible, what is the last date I can convert, and which permanent products am I allowed to convert into. Write the answers down with the date and the name of the person you spoke with.
When the window closes, it closes for good. A policy that was worth a meaningful settlement in January can be worth nothing in July for no reason other than the calendar.
Why Term Alone Rarely Sells
Term insurance is pure protection. It has no cash value, no account value, and no surrender value. If you stop paying, it ends and you receive nothing. When the level period runs out, the premium typically jumps to an annually increasing rate that becomes brutal at older ages, and the coverage terminates entirely at the contract’s expiry age.
A settlement buyer values a policy on the expectation of eventually collecting the death benefit. With term, the buyer is racing the clock against a hard expiration date, and often losing. The exception is a case where the insured has a serious health impairment and a short life expectancy relative to the remaining term. In that narrow situation a term policy can draw an offer on its own, without conversion.
Conversion, Step by Step
Converting is an administrative act, not a new application. Here is the normal sequence:
- Confirm eligibility and the deadline with Pan-American Life.
- Ask which permanent products are available for conversion and request premium quotes for each at the face amount you want.
- Decide how much of the death benefit to convert. Partial conversion is often allowed, which lets you convert only the amount that makes sense.
- Submit the conversion form. No new medical exam is required under a standard conversion privilege, which is exactly why it is valuable to someone whose health has changed.
- Once the permanent policy is issued, the settlement review proceeds on that contract.
Some carriers require a policy to have been in force a minimum period before it will be considered for settlement after conversion. Ask about that early so the timeline does not surprise you.
What Pan-American Life Being a Mutual Holding Company Means Here
Pan-American Life Insurance Group is a New Orleans company founded in 1911 and organized as a mutual holding company, so there are no public shareholders. It also owns Mutual Trust Life Insurance Company, acquired in 2016, and it writes a large book of business across Latin America and the Caribbean in addition to its U.S. operations.
Practically, that means the permanent product menu available on conversion depends on which entity issued your term policy and which company administers it today. A policy serviced through Mutual Trust may offer a different conversion product than one issued directly by Pan-American Life, and a contract issued outside the United States follows different ownership-transfer rules entirely. Confirm all of this with the carrier rather than assuming, and confirm the group’s current A.M. Best rating with A.M. Best directly as of 2026.
| Your Situation | Can It Be Sold? | What to Do First |
|---|---|---|
| Term still convertible, deadline months away | Usually yes, after conversion | Get conversion quotes and start a review now |
| Term convertible, deadline within weeks | Yes, if you move immediately | Call the carrier today; conversion first, review second |
| Conversion window expired, insured in good health | Rarely | Ask about riders or reinstatement, then reconsider the coverage need |
| Conversion window expired, serious health impairment | Sometimes | Request a review; short life expectancy can carry a term case |
| Group term through an employer | Not as group coverage | Convert or port within about 31 days of leaving |
Group Term Through an Employer Is a Different Animal
If your Pan-American Life term coverage came through an employer or an association rather than a policy you bought yourself, the rules change. Group certificates generally cannot be sold while they remain group coverage. They must first be converted or ported into an individual policy, and the window to do that after retirement or leaving the employer is typically only about 31 days.
That is a very short fuse. If this describes your situation, read our guide to selling a Pan-American Life group life policy today rather than next month.
What Converted Coverage Is Worth in a Settlement
After conversion, your policy is judged like any other permanent policy. Buyers weigh the insured’s age and health, the death benefit, and the premium required to keep the contract in force. Most buyers want to see $100,000 or more of death benefit, and insureds are commonly in their late 60s or older, or younger with a significant health condition.
Published market data suggests sellers have typically received roughly 10% to 35% of face value, with average proceeds several times the cash surrender value according to the GAO’s market study (GAO-10-775). Converted term usually has little or no cash value at the start, so that surrender comparison is not very meaningful here. The number that matters is what you would otherwise receive by letting the term lapse, which is zero.
If the Conversion Window Has Already Closed
It happens, and it is not automatically the end. Ask Pan-American Life two questions. First, whether any portion of the coverage carries a different or longer conversion privilege, since riders and layered policies sometimes do. Second, whether the policy is still within a reinstatement period if it lapsed recently, because reinstating can sometimes restore rights along with the coverage.
If neither applies and the insured has a serious health impairment, a review is still worth doing. If the answer is simply no, you have lost nothing by asking, and you now know not to keep paying premiums on coverage your family no longer needs.
Your Next Step
Call Pan-American Life for your conversion deadline, then send us the policy cover page for a free review or call (305) 209-7183. There is no cost and no obligation, and if the answer is no you will hear it plainly. To see the full screening criteria, read what policies qualify for a life settlement. If you also own permanent Pan-American coverage, our guide to selling a Pan-American universal life policy covers that case, and the education center has the rest.
Frequently Asked Questions
Can I sell a term policy without converting it?
Occasionally. It normally happens only when the insured has a serious health impairment and a life expectancy short enough that the buyer expects the death benefit to be paid before the term expires. For most healthy insureds, conversion first is the practical path.
How do I find my conversion deadline?
Check the conversion provision in your policy, or call the service number on your Pan-American Life premium notice and ask for the last eligible conversion date in writing. Deadlines are set by policy duration, by the insured’s age, or by whichever comes first.
Does converting require a new medical exam?
A standard conversion privilege lets you exchange term for permanent coverage without new underwriting, which is what makes it valuable when health has declined. Confirm the exact terms with the carrier, since provisions vary by contract and issue year.
Do I have to convert the entire death benefit?
Often no. Many contracts permit a partial conversion, letting you convert only the portion you intend to keep or sell. Ask the carrier what minimum and maximum amounts apply to your policy.
Does Pan-American Life have to agree to the sale?
No. Selling a policy is a transaction between you and the buyer, and the carrier’s permission is not required. Pan-American Life records the ownership change after closing but has no say in whether you sell.
What does the converted policy cost me?
Permanent premiums are higher than term premiums at the same face amount, and the older the insured, the bigger the gap. In many settlement cases the buyer takes over premium payments after closing, so the exposure is limited to the period before the sale funds. Get quotes before committing.
How long does everything take once I convert?
The settlement itself usually runs about 60 to 120 days, driven mostly by how fast medical records arrive. Conversion adds its own processing time on the carrier’s side, so start the conversation well before any deadline.
Is a life settlement on converted term taxable?
It can be, and the treatment depends on your basis in the contract and your health status. Ask a tax professional before accepting an offer. Nothing on this page is tax advice.
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Related Reading
- What Policies Qualify For Life Settlement
- Sell My Pan American Life Universal Life Policy
- Sell My Pan American Life Group Life Policy
- Education Center
- How It Works Policy Options
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.