Yes — a Reliance Standard term life policy can lead to a life settlement, but nearly always only after it is converted to permanent coverage. Your right to sell is not the issue. A policy is personal property, the buyer purchases the contract from you, and the carrier’s permission is not needed. The issue is that term insurance has no cash value and expires on a set date, so there is nothing for a buyer to hold unless the contract can be converted.
Reliance Standard Life Insurance Company, based in Philadelphia, writes mainly group employee benefits — group life, disability and voluntary coverage sold through employers — and became part of the Tokio Marine group when its parent Delphi Financial Group was acquired in a transaction announced in 2011 and completed in 2012. Verify the current structure and A.M. Best rating with the carrier as of 2026. Because of that group focus, a large share of Reliance Standard term coverage is group term, which brings a second and much shorter deadline into play.
Either way, this page is about deadlines. They expire quietly, no one calls to remind you, and once they pass the coverage usually cannot be monetized at any price. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Reliance Standard.
In This Article
Two Different Clocks
Before anything else, establish which kind of term coverage you have, because the timelines are not remotely the same.
Individual term. A policy issued in your name that you pay for directly. The conversion privilege typically runs to a stated attained age or a set number of policy years — often well before the level term period ends. Common patterns end conversion at age 65 or 70.
Group term. A certificate under an employer’s master policy. Coverage generally ends when employment ends, and the right to convert to an individual policy usually lasts only about 31 days from that date. Confirm the exact figure in writing with the plan administrator.
If you have group term and you are retiring, that 31-day window is the tightest deadline in this entire subject. Start on day one.
Why Conversion Creates Value
A conversion privilege lets you exchange term coverage for permanent coverage without new medical underwriting. Health that has declined badly since the policy was issued does not block it. You convert on the strength of the health class you were assigned years ago.
That is precisely the combination the secondary market pays for. The buyer values the policy using today’s health and today’s life expectancy, while the premium is based on underwriting from a healthier time. When the insured is a senior or has a serious documented condition, and the converted death benefit is $100,000 or more, that gap can be worth pursuing. Our checklist of what qualifies for a life settlement covers the other screens.
What to Ask the Carrier or Plan Administrator
Get these answers in writing, not over the phone alone:
- What is the last date I may convert?
- What is the maximum face amount I may convert?
- Which permanent products is the conversion available into, and what is the premium at my current age?
- Is partial conversion allowed, and what is the minimum?
- For group coverage: is portability offered as well, and what does it cost?
Those five answers tell you whether there is anything here worth pursuing and give any reviewer everything needed for a preliminary opinion.
| Coverage Type | Typical Deadline | Who to Ask | Path to a Settlement |
|---|---|---|---|
| Individual term | A stated attained age or policy year | Carrier service center | Convert to permanent, then sell if it qualifies |
| Group term certificate | About 31 days after coverage ends | Employer plan administrator | Convert to an individual permanent policy first |
| Ported group term | Varies; may carry its own conversion right | Carrier | Convert before that right expires |
| Non-convertible term | None available | — | Generally not sellable |
Conversion Versus Portability on Group Term
Group plans often present two doors on the way out and the cheaper one is usually the dead end. Portability keeps group term coverage on a direct-bill basis for a period. It costs less, but it is still term insurance that expires, so it generally leaves nothing sellable. Conversion produces an individual permanent policy at a materially higher premium — and that is the contract a buyer can purchase.
Ported coverage sometimes carries its own conversion right with its own expiration. If you already ported, ask when that deadline hits. It is a second chance many people do not know they have.
Sequence: Value First, Then Convert
Wherever the calendar allows, get an indication of value before converting. Converting commits you to permanent premiums, and paying those on a policy no buyer wants is a bad outcome. The sensible order is: confirm the conversion terms, get a free review based on the cover page and the conversion details, and only then complete the conversion if the policy looks like a genuine candidate.
When the deadline is days away, that order compresses. Sometimes converting to preserve the right is the defensible move even without certainty, particularly with a large face amount and an insured in poor health. That is a judgment call worth making with real numbers in front of you rather than by default.
If the Window Has Closed
Be straight with yourself here. A term policy with no conversion right, no cash value and no return-of-premium feature has essentially no resale market. Rare exceptions involve a severe, well-documented impairment plus substantial guaranteed term years remaining, and even then a buyer has to be willing to take that specific risk.
Before you drop anything, check for a return-of-premium rider, an accelerated death benefit rider for terminal or chronic illness, or a waiver-of-premium provision. Those are carrier features, not settlements, but they can be worth real money. A free review will tell you which situation you are in.
What Happens After Conversion
Once the individual permanent policy is issued, the process is the same as any other permanent contract: authorizations, medical records, one or two independent actuarial life-expectancy reports, bids from licensed institutional buyers, then closing through an independent escrow account with funds released after the carrier records the ownership change. Plan on 60 to 120 days for that stage, plus several weeks for conversion itself.
The typical range from the federal GAO study (GAO-10-775) is roughly 10% to 35% of face value, though converted-term cases vary widely because the new permanent premium is a major input. Our step-by-step of the process shows what to expect at each stage. Nothing here is legal, tax or investment advice — talk to a CPA about proceeds and to an elder-law attorney if benefits eligibility is a concern.
Frequently Asked Questions
Can I sell a term policy without converting it?
Usually not. Term has no cash value and expires, so there is nothing for a buyer to hold long term. Rare exceptions involve a severely impaired insured with substantial guaranteed term years still remaining.
How long do I have to convert group term after I retire?
Most group plans allow about 31 days from the date coverage ends, though terms vary by plan and some states extend it if required notice was not given. Confirm your exact deadline in writing with the plan administrator as soon as you know your last day.
Will converting require a medical exam?
Generally no. A conversion privilege exists precisely so you can move to permanent coverage without new evidence of insurability. That is why it retains value even after health has declined.
Should I port my group coverage or convert it?
Porting is cheaper but keeps expiring term coverage, which generally cannot be sold. Conversion costs more and produces a permanent individual policy, which is the contract a buyer can purchase. Choose based on whether you want lower cost now or a sellable asset.
Can I convert only part of the coverage?
Many plans and policies allow partial conversion above a minimum amount. That lets you convert enough to clear the $100,000 threshold the secondary market generally applies and let the rest lapse. Ask the carrier whether your contract permits it.
Should I convert before getting an offer?
Get an indication of value first when the calendar permits, because converting commits you to permanent premiums. If the deadline is only days away and the face amount is large, converting to preserve the option can be the defensible move.
Does Reliance Standard have to approve a sale?
No. The carrier’s permission is not required and it is not a party to the decision. It administers the conversion under the contract and records the ownership change after the settlement closes.
What should I send?
Send the policy or certificate cover page plus anything describing the conversion privilege, or call (305) 209-7183. The review is free and there is no obligation to proceed.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Is A Life Settlement Worth It
- Education Center
- Sell My Reliance Standard Whole Life Policy
- Sell My Reliance Standard Universal 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.