Term insurance is temporary by design. It pays a death benefit if the insured dies inside the level period, it builds no cash value, and it ends. A buyer in the secondary market acquires a future death benefit, so a contract that may simply expire gives them nothing to acquire.
That is why almost every honest answer to this question starts with the same word: conversion. A convertible term policy can be exchanged with the carrier for permanent coverage, usually without new medical underwriting, and that exchange is what changes the analysis. The conversion right has a deadline, and it usually arrives well before the term ends. Pine Lake Life Solutions is an independent education and policy-review resource, not affiliated with or endorsed by Security Mutual Life Insurance Company of New York.
In This Article
Find the Conversion Provision First
The conversion privilege lives in the policy form, not in a brochure. It states three things: the last date or attained age at which conversion may be exercised, the permanent products the term policy may be converted into, and whether any evidence of insurability is required. Those terms vary by policy form, by issue year, and by the state where the policy was issued, so there is no single Security Mutual rule that can honestly be quoted here.
Call the company and ask for the conversion terms for your specific policy number in writing. Ask for the premium at your current attained age for a full conversion and for a partial conversion at a reduced face amount, because a partial conversion is often the affordable version of the same decision.
Do this early. The most common outcome in this area is not a rejected conversion; it is a conversion right that quietly expired years before anyone looked for it.
Getting Through to the Right Desk
Security Mutual routes service by policy number prefix. The company lists Individual Client Services at 1-800-765-6668 for policies beginning 000, 001, or 002, and 1-800-632-6567 for policies beginning 00DA. The general company number is 1-800-346-7171. Policies whose numbers begin with anything else are directed to contact the Home Office to request forms.
Written correspondence goes to Security Mutual Life Insurance Company of New York, 100 Court Street, PO Box 1625, Binghamton, NY 13902-1625. The company states on its forms page that “an original copy must be received by our Home Office unless it states otherwise on the form,” so plan for physical mail rather than assuming an upload will be accepted.
Have the policy number, the insured’s full name and date of birth, and the owner’s identifying information ready. If the owner has died or become incapacitated since issue, expect to provide documentation of authority before the company will discuss the contract.
One Company, Fifty States: Which Law Applies
Security Mutual is a New York-domiciled mutual insurer, licensed in all fifty states plus the District of Columbia and the United States Virgin Islands. Owners sometimes assume that a New York carrier means New York settlement rules apply to them. Generally it does not work that way.
Life settlement regulation, including licensing of providers and brokers, mandatory disclosures, and rescission periods, is state law that follows the policy owner’s state of residence rather than the insurer’s state of domicile. Two people holding identical Security Mutual policies, one in Florida and one in Michigan, can face different disclosure requirements and different rescission windows. Check your own state insurance department’s rules, and confirm that any broker or provider you deal with holds a current license in your state.
The carrier’s domicile does matter for one thing: the state guaranty association coverage that would apply in an insolvency, which is a separate question from settlement regulation and worth understanding on its own terms.
| Policy number begins | Service line published by the company | Forms available online |
|---|---|---|
| 000, 001, 002 | 1-800-765-6668 | Yes, including Absolute Assignment |
| 00DA | 1-800-632-6567 | Yes, including Absolute Assignment |
| Any other prefix | 1-800-346-7171 (general) | Contact the Home Office for forms |
If the Coverage Came Through an Employer or Association
Group life certificates are a different animal from individual policies. The conversion window after coverage ends is typically short, often around thirty-one days, and it is not extended for people who did not open the envelope. Miss it and the right is gone.
Group certificates also commonly restrict or prohibit assignment to a third party. Where an anti-assignment clause applies, no sale is possible at any age, in any state of health, at any face amount. The only route to permanent coverage is conversion inside the certificate’s own window, or portability if the plan offers it.
Request the certificate booklet in writing from the plan administrator and read the conversion and assignment sections. If the employer used Security Administrators, Inc. or another Security Mutual affiliate for plan administration, the booklet will say so, and that tells you where to direct the request.
What Happens if the Premium Simply Stops
A term policy that lapses returns nothing. There is no cash value, no reduced paid-up option, and no extended term benefit, because there is no accumulated value to fund one. After the grace period the coverage ends.
Reinstatement may be available for a limited period after lapse, but it normally requires evidence of insurability and payment of back premiums with interest, which is exactly the combination someone in declining health cannot satisfy. In other words, the option is usually available only to people who no longer need it.
If money is the constraint, deal with it while the policy is still in force. Reducing the face amount lowers the premium on many contracts. Converting a portion of the coverage produces a smaller permanent policy at a manageable cost. Both are decisions to make deliberately, with figures from the company in front of you.
If a Converted Policy Is Later Sold
Conversion removes the expiry date; it does not create an entitlement to sell. Whether a converted permanent policy attracts interest from licensed providers still depends on the insured’s age and health, the death benefit, and the cost of carrying the contract. No eligibility or value can be promised in advance.
If a transaction does proceed, the ownership change is recorded by Security Mutual. The company publishes an Absolute Assignment of Life Insurance Policy, identified as its change of ownership form, for policies beginning 000, 001, 002, or 00DA. A separate form is required for each policy, all current and new owners must sign, and the assignment does not itself change the beneficiary, so a separate beneficiary change is usually filed at the same time. A trust certification is required if a trust will own the policy.
Frequently Asked Questions
Can a term life policy be sold?
Not in term form. There is no cash value and the coverage expires, so a buyer would risk paying premiums and collecting nothing. If the policy carries an unexpired conversion privilege, converting it to permanent coverage with the carrier is the step that makes any later evaluation possible.
When does my conversion right expire?
It is set out in your policy form and varies by form, issue year, and issue state, so it must be confirmed for your specific policy number. Call Security Mutual using the line matching your policy prefix and request the last conversion date in writing, along with the products available and the premium at your attained age.
Does New York law apply because Security Mutual is a New York company?
Generally no. Life settlement regulation follows the policy owner’s state of residence rather than the insurer’s state of domicile. Security Mutual is licensed in all fifty states plus the District of Columbia and the Virgin Islands, so owners in different states face different disclosure and rescission rules.
What if my Security Mutual coverage is a group certificate?
Read the certificate booklet before doing anything. Group certificates usually carry a short conversion window after coverage ends, often around thirty-one days, and frequently restrict assignment to a third party. Where assignment is prohibited, a sale is not possible and conversion is the only route to permanent coverage.
Can I reinstate a term policy that already lapsed?
Sometimes, within a limited window, but reinstatement typically requires evidence of insurability plus back premiums and interest. That combination is difficult for anyone whose health has declined. Acting before a lapse gives you far more options than acting after one.
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Related Reading
- Sell My Security Mutual Whole Life Policy
- Sell My Security Mutual Universal Life Policy
- Sell My Security Mutual Guaranteed Universal Policy
- Carrier Anti Assignment Provisions
- Life Insurance Grace Period Explained
- How To Find Licensed Life Settlement Broker
- Sell My Guardian 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.