You are legally free to sell a Primerica term life policy – no carrier permission is required – but as a practical matter a term policy has to be convertible to permanent coverage before a buyer will purchase it. That is the whole question for Primerica owners, and it deserves a straight answer rather than a sales pitch. Term insurance has no cash value and expires on a scheduled date, so buyers need the conversion privilege to turn it into an asset that lasts.
Primerica is unusual among large life insurers. Primerica Life Insurance Company is a subsidiary of Primerica, Inc., which trades on the New York Stock Exchange under PRI and was separated from Citigroup through an initial public offering in 2010. The company traces back to A.L. Williams and built its entire business model on the phrase buy term and invest the difference – meaning it has focused on term insurance rather than cash-value products. In New York, policies have historically been issued by an affiliated company rather than Primerica Life itself; verify which entity issued yours.
Because Primerica has centered on term products, what your policy converts into – if anything – is the first thing to confirm in writing. This guide shows exactly what to ask. Pine Lake Life Solutions is not affiliated with Primerica.
In This Article
- Start Here: Get Your Conversion Rights in Writing
- Why a Term-Focused Carrier Changes the Analysis
- Why Conversion Is Guaranteed Regardless of Health
- What Buyers Require Beyond Conversion
- If Your Policy Cannot Be Sold, Look at These
- The Process and What It Costs You
- Tax, Medicaid, and the Advice You Actually Need
- Frequently Asked Questions
Start Here: Get Your Conversion Rights in Writing
Do not take a general article’s word for your contract – including this one. Call the service number on your Primerica premium notice and ask four questions. Is my policy convertible? To what product or products, as of 2026? What is the last date I may convert? And what premium would the converted policy carry at my current age?
Ask for the answer in writing or by secure message so you have a record. Conversion rights vary by product series and by state of issue, and a representative’s verbal summary is not a contract. If your policy documents are lost, request a copy of the contract at the same time; you are entitled to one.
Why a Term-Focused Carrier Changes the Analysis
Conversion privileges normally let you exchange term coverage for a permanent policy issued by the same company. When a company’s product line is built around term, the range of permanent products available for conversion may be limited or, on some contracts, unavailable. This is not a criticism of Primerica – its model is straightforward and has served a lot of families – it simply changes what is possible in the secondary market.
So the realistic outcomes are three. If the policy converts to a permanent product and the insured qualifies on age and health, a settlement may well be possible. If conversion exists but the window has closed, it generally is not. If the contract has no conversion right at all, the honest answer is that a life settlement is very unlikely, and you should be skeptical of anyone who says otherwise.
Why Conversion Is Guaranteed Regardless of Health
The reason conversion matters so much is that it does not require new medical underwriting. When a conversion privilege applies, the insured exchanges the term policy for permanent coverage at the original underwriting class – even if their health has since collapsed. Someone who could never buy a new policy at any price can still convert.
That is exactly the situation the settlement market values. A permanent policy on an insured with a materially shortened life expectancy, obtained without new underwriting, is a real asset. It is also why the deadline is so consequential: the same policy that is valuable on the last day of the conversion window is typically worth nothing on the first day after it.
| Question to Ask Primerica | Why It Matters | What a Good Answer Looks Like |
|---|---|---|
| Is my policy convertible? | Term with no conversion right generally cannot be sold | A clear yes or no, in writing |
| Convertible to which product? | Buyers need permanent coverage, not another term policy | A named permanent product available in 2026 |
| What is the last date to convert? | The window closes by age or policy year | A specific date, not a vague estimate |
| What premium after conversion? | Carrying cost drives the offer | An illustrated annual premium at current age |
| Which company issued my policy? | Determines where the paperwork goes | The issuing entity named on the contract |
What Buyers Require Beyond Conversion
Conversion opens the door; qualification walks through it. Buyers generally want an insured age 65 or older, or younger with a serious health change; a death benefit of $100,000 or more; and a policy in good standing past its contestability period. Primerica policies are often sizeable, since the company’s pitch has long emphasized large face amounts relative to premium, so the face-amount test is frequently met.
The life expectancy assessment is the other half. The insured signs HIPAA authorizations, independent underwriting firms review medical records, and buyers price from those reports. Nothing about that process obligates you to sell. If the reports come back showing a long life expectancy, you will likely get no offers or low ones, and that is useful information too.
If Your Policy Cannot Be Sold, Look at These
First, check every rider on the contract. Terminal illness and chronic illness accelerated death benefit riders pay a portion of the death benefit directly to the insured under qualifying conditions, generally with no sale and far less paperwork. For someone who is seriously ill, this is often the faster and better answer.
Second, ask what the coverage costs to continue past the level-premium period. Some term policies renew annually at steeply increasing rates – occasionally still worth it for a year or two if the insured is very ill. Third, if a beneficiary would suffer a real loss without the coverage, sometimes the right move is for that person to take over the premiums. Keeping the policy is a legitimate outcome.
The Process and What It Costs You
If the policy is a candidate, expect 60 to 120 days from first call to funds. Document gathering and authorizations come first, then medical underwriting, then bidding, then closing. When a conversion is involved, the buyer’s offer is typically contingent on conversion, and the conversion is executed at closing rather than paid for by you upfront.
Funds are held in escrow until the administrator records the ownership change, then released to you. Most states give sellers a rescission period afterward – a set number of days to unwind the sale by returning the money. A free policy review costs nothing; broker or intermediary compensation is disclosed as part of the transaction, and you should ask for that disclosure in writing before signing anything.
Tax, Medicaid, and the Advice You Actually Need
Settlement proceeds are not automatically tax-free. Depending on your cost basis in the policy and the amount received, part may be recovered tax-free, part taxed as ordinary income, and part as capital gain; federal tax legislation in 2017 changed how basis is calculated for these transactions. A CPA can run your specific numbers – an article cannot.
If the point of the sale is a Medicaid spend-down or paying for senior care, the sequencing matters more than most people realize. Proceeds are countable resources, and Medicaid applies a look-back period to transfers. Coordinate with an elder law attorney before the money arrives, not after. Nothing on this page is legal, tax, or investment advice.
Frequently Asked Questions
Does Primerica have to approve the sale?
No. A life insurance policy is your personal property and you may sell it; the buyer purchases the contract and the carrier records the ownership change afterward. What the carrier does control is whether your term policy can be converted, which is the practical gatekeeper for a term settlement.
Primerica focuses on term. Does that mean I cannot sell my policy?
It means conversion is the deciding factor and must be confirmed with the carrier directly. Because Primerica’s product line has centered on term insurance rather than cash-value coverage, the permanent products available for conversion may be limited. Ask for your specific contract’s conversion terms in writing before drawing conclusions.
Who owns Primerica?
Primerica Life Insurance Company is a subsidiary of Primerica, Inc., a publicly traded company listed on the New York Stock Exchange under the ticker PRI. It was separated from Citigroup through an initial public offering in 2010 and traces its history to A.L. Williams. Confirm the specific issuing entity named on your own contract.
My health got much worse. Can I still convert?
Where a conversion privilege applies, it is typically guaranteed without new medical underwriting, at the insured’s original underwriting class. That is precisely why declining health makes conversion valuable rather than impossible. Confirm the terms with the carrier in writing.
How much could a converted policy be worth?
Across the market, life settlement offers commonly fall between 10% and 35% of the death benefit, with life expectancy and carrying cost driving the number. A GAO study (GAO-10-775) found sellers typically received several times the cash surrender value they would have gotten otherwise. Only a review of your actual policy produces a real figure.
What if my conversion deadline is next month?
Say so immediately at the first call. A settlement normally takes 60 to 120 days, so a very short window may not be workable, but it is sometimes possible to convert first and sell after. Do not let the deadline pass while you think it over.
How do I get a free policy review?
Send the policy cover page – the page with the owner, insured, face amount, and policy number. That is enough for a first assessment, at no cost and with no obligation. Questions can go to (305) 209-7183.
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
- Education Center
- What Is The Medicaid Look Back Period
- What Is A Life Settlement Broker
- Sell My Globe Life Term 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.