The single fact that determines whether your term policy has any market value is the date your conversion privilege expires — and on most contracts that date arrives years before the level premium period ends. A buyer is purchasing a death benefit that must eventually be paid. Term coverage that expires while the insured is still living pays nothing, so an unconvertible term policy is worth essentially zero in the secondary market no matter how large the face amount or how serious the diagnosis.
Pekin Life Insurance Company confirms term life as part of its individual life shelf, alongside whole life and universal life, plus Medicare supplement, annuity and pre-need coverages. It is an Illinois-domiciled multi-line insurer headquartered in Pekin, Illinois, operating within the Pekin Insurance group alongside Farmers Automobile Insurance Association. At its 2026 annual meeting the company reported net income of $8.3 million for the year ended December 31, 2025 and life insurance in force exceeding $21.9 billion at year-end 2025.
We could not confirm the specific current term product names in Pekin Life’s portfolio as of 2026, and the company distributes through a regional Midwestern footprint rather than nationally. That regional character matters more than it sounds, and this page explains why — along with exactly what to ask the carrier and what to do if the window has already closed.
In This Article
Pin down three limits, and let the earliest one govern
Every convertible term contract carries three separate constraints on the conversion right. Read the policy, and write down all three:
- An age cutoff. Most commonly the policy anniversary nearest the insured’s 65th or 70th birthday. This is usually the binding one for anyone who bought coverage after their mid-forties.
- A duration cutoff. Many forms allow conversion only during the earlier portion of the level term — the first ten years of a twenty-year policy, or the first fifteen of a thirty-year policy, are widespread patterns.
- A product limitation. Nearly all conversion clauses permit conversion to a permanent product the company makes available at the time of conversion. That wording matters a great deal on a regional carrier with a compact shelf.
Write to the carrier as the owner of record and ask for four specific items in one letter: the exact calendar date the conversion privilege expires; the specific permanent product a conversion would produce today; an illustration of that product’s premium at the insured’s current age; and written confirmation that the original underwriting class carries forward with no new evidence of insurability. Do not accept a phone answer on any of these. Background on the provision is in our explainer on term conversion riders.
Why a regional carrier’s footprint affects your conversion
Pekin Life writes in a limited set of states rather than nationally, and that creates a scenario that does not arise with a nationwide carrier.
Conversion clauses generally specify a permanent product available in the state where the policy was issued. If a policyholder moves — a common event between age fifty and seventy — and the carrier is not writing in the new state, the practical mechanics of exercising a conversion can get complicated. Some carriers handle this smoothly by treating the original issue state as controlling; others require a conversation. Either way, if you have relocated since the policy was issued, raise it explicitly in your letter and get the answer in writing.
A related point applies to servicing generally. A multi-line regional insurer’s life division is often small relative to its property and casualty operations, and the person answering the main number may not be the person who can quote a conversion. Ask specifically for the individual life service unit, and put your four questions in a letter so there is a record.
None of this makes conversion unavailable. It makes it something to confirm early rather than assume, because a settlement transaction that stalls at closing over conversion mechanics costs everyone weeks.
How conversion pricing works, and who pays it
Converting reprices coverage at the insured’s attained age while preserving the risk class assigned when the term policy was originally underwritten. No new medical evidence is required. That asymmetry is the whole source of value: a preferred nonsmoker classification earned at fifty-three carries into a conversion at sixty-nine even if the insured now has advanced heart disease, because the carrier already accepted that classification and contractually agreed to honor it.
The premium reflects current age, and the jump is severe. A $400,000 level term policy costing $1,900 a year at sixty-four can convert into a permanent premium of $20,000 to $30,000 a year or more, depending on the landing product. That figure is precisely why a policyholder trying to reduce costs cannot solve the problem by converting alone.
In a settlement, the buyer funds it. The normal sequence is: submit the term policy for review; providers underwrite and issue offers contingent on conversion; conversion and transfer of ownership execute together at closing, with the buyer assuming premiums from that point forward. You should never be asked to pay a large conversion premium out of pocket in advance against a promised sale. That pattern is on our list of life settlement red flags.
| Ask the carrier | Why it matters | Get it in |
|---|---|---|
| Exact date the conversion right expires | Determines whether any market exists | Writing |
| Which permanent product a conversion produces | Regional shelves are compact; the answer can change | Writing |
| Illustrated premium at current attained age | Sets what the buyer must fund after closing | Writing |
| Confirmation the original risk class carries forward | This is the entire value of the conversion right | Writing |
| Whether you hold a policy or a rider | A rider cannot be sold separately from its base | Declarations page |
The screens that follow convertibility
Convertibility opens the file. Three more filters decide whether an offer appears.
Face amount. Most providers work from a floor near $100,000, and a large share will not review anything below $250,000. A converted policy carries a permanent premium the buyer must fund for years, so small face amounts cannot absorb the underwriting, escrow and closing costs. Detail in minimum policy size for a life settlement.
Age and health. The market is built for insureds roughly sixty-five and older, or younger insureds with a significant diagnosis. A healthy sixty-two-year-old with a fully convertible policy will typically receive no offer, and that is an ordinary market result rather than a broker’s failing.
Ownership and consent. Only the owner of record can transfer the policy. If a business, a trust, or an ex-spouse under a divorce decree holds ownership, that party signs; an irrevocable beneficiary must consent in writing. On older family policies the owner is sometimes a parent who has since died, in which case ownership passed through an estate and must be re-established first.
Illinois-delivered policies settle under the Illinois Viatical Settlements Act at 215 ILCS 158, administered by the Illinois Department of Insurance. If your policy was delivered in Indiana, Iowa, Ohio or Wisconsin, that state’s act governs instead — the transaction follows the policy’s delivery state, not the carrier’s domicile.
Do not confuse a term rider with a term policy
Because Pekin Life writes whole life and universal life alongside term, a meaningful share of the coverage people describe as “my term policy” is actually a term rider bolted onto a permanent base contract. The difference determines what you own.
A standalone term policy has its own policy number, its own owner and beneficiary designations, and its own conversion provision. It can be transferred by itself, and if convertible, it can be converted and sold on its own.
A term rider shares the base contract’s policy number and cannot be separated from it. You cannot sell the rider alone. What would be sold is the entire contract, base and rider together, and buyers value that on the permanent base’s economics — account value, cost of insurance charges, guaranteed cash value, and any no-lapse guarantee — rather than on term math.
Your declarations page tells you which. A single level face amount with a level premium period and an expiry date indicates a standalone policy. A base plan listed with one or more riders carrying their own face amounts indicates a rider. If you hold the latter, the relevant reading is our page on selling a Pekin Life universal life policy or the whole life equivalent.
When the window has closed
Most term inquiries end here, and a direct answer is more useful than a hopeful one. If the conversion privilege has expired, the policy has no meaningful market value and no broker can create one. Do not spend weeks assembling medical records for a transaction that cannot happen.
Look inside the contract instead. Many term forms carry an accelerated death benefit rider that pays a portion of the face amount on certification of terminal illness, and some include chronic illness triggers. That is a claim against your own policy — no buyer, no escrow, no third-party underwriting — and it generally pays faster than any secondary market transaction. Check as well for a waiver of premium benefit that may have gone unclaimed during a past period of disability.
If the insured has a terminal prognosis, a viatical settlement operates under different regulatory and tax rules than a life settlement, and it deserves separate evaluation with your own tax advisor.
And if the coverage is still genuinely needed but the premium has become unaffordable, the answer may be a smaller replacement policy rather than any transaction on this one. Our guide to unaffordable life insurance premiums ranks the alternatives.
Pine Lake Life Solutions provides education and a free policy review. Pine Lake does not purchase policies and we are not licensed in every state. Send the policy cover page and the conversion provision and you will get a straight read on whether the clock is still running.
Frequently Asked Questions
Does Pekin Life offer convertible term insurance?
Pekin Life confirms term life as part of its individual life shelf alongside whole life and universal life. We could not confirm the specific current term product names or their conversion terms as of 2026. Ask the carrier in writing for the exact conversion expiration date and the permanent product a conversion would produce, and do not rely on a phone answer.
Why does the conversion right end before my level premium period does?
Three limits apply and the earliest governs: an age cutoff, commonly the anniversary nearest age 65 or 70; a duration cutoff, often the first ten or fifteen years of the level term; and a product limitation permitting conversion only to a permanent policy available at the time of conversion. For anyone who bought after their mid-forties, the age cutoff usually binds first.
I moved out of state since the policy was issued. Does that affect conversion?
It can, because Pekin Life writes in a limited set of states rather than nationally, and conversion clauses typically reference a product available in the issue state. Some carriers treat the original issue state as controlling; others require discussion. Raise your relocation explicitly in your written request and get the answer in writing before planning around a conversion.
How much will the converted permanent premium be?
Substantially more than the term premium, because conversion prices at attained age while preserving the original risk class. A $400,000 term policy costing under $2,000 a year at 64 can convert into a permanent premium in the $20,000 to $30,000 range or higher. In a settlement the buyer funds that cost from closing forward, not the policy owner.
How do I tell a term policy from a term rider?
Read the declarations page. A single level face amount with a level premium period and an expiry date indicates a standalone term policy that can be transferred on its own. A base plan listed with one or more riders carrying their own face amounts indicates a rider, which shares the base policy number and cannot be sold separately from the base contract.
The conversion window closed. Is there anything worth doing?
Yes, but not a sale. Check the contract for an accelerated death benefit rider paying part of the face amount on a terminal illness certification, and for a waiver of premium benefit unclaimed during a past disability. If the prognosis is terminal, a viatical settlement follows different regulatory and tax rules and merits separate review with your tax advisor.
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Related Reading
- Can I Sell A Term Life Insurance Policy
- What Is A Term Conversion Rider
- Minimum Policy Size For A Life Settlement
- Life Settlement Red Flags To Watch For
- Cant Afford Life Insurance Premiums
- Sell My Pekin Life Universal Life Policy
- Sell My Pekin Life Whole Life Policy
- What Is An Accelerated Death Benefit Rider
- Sell Term 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.