Can I Sell My SILAC Term Life Policy? (2026 Guide)

Why Term by Itself Is Not a Settlement Candidate

A settlement buyer takes ownership of a contract and pays premiums for years, expecting a death benefit eventually. Level term breaks that model in two ways.

First, it ends on a fixed date. If the insured is alive when the level period closes, the buyer has paid premiums and received nothing. Second, what follows the level period is usually annual renewable term, where the premium escalates steeply every single year. The carrying cost quickly exceeds any plausible value.

So a term policy with no conversion right remaining is, in almost all cases, not sellable. The narrow exception: an insured with a serious health impairment and meaningful time still left in the level period, where life expectancy may fall inside the remaining term. That case still requires a real review rather than an assumption. See what policies qualify.

The Conversion Privilege Is the Whole Asset

A convertible term policy lets you exchange it for a permanent policy from the same carrier without a new medical exam. That single feature is what can make term monetizable — and it is what most owners let expire.

Deadlines come in two forms and your contract may contain both:

• Age-based. Conversion allowed until the insured reaches a stated attained age, often somewhere in the 65 to 70 range depending on the product.
• Duration-based. Conversion allowed only within the first several policy years, for example the first 10 years of a 20-year term.

Whichever arrives first governs. Find the provision, usually titled Conversion Privilege or Right to Convert, and ask the servicing carrier to confirm the exact date in writing. Nothing visible happens on that date — the premiums keep coming and the most valuable feature of your contract quietly disappears.

Four Details to Confirm Before You Convert

Read the provision closely and get each of these confirmed in writing by the carrier:

1. The exact deadline. Attained age, duration, or both.
2. Which products you may convert into. Some contracts allow any permanent product the carrier offers; others restrict you to a single designated conversion product, which may be priced very differently. For a carrier now focused on annuities, ask specifically what permanent life products remain available for conversion in 2026.
3. How much you may convert. Full face amount or partial. Partial conversion lowers the premium but also lowers the face amount, which matters given a $100,000 minimum death benefit.
4. Whether evidence of insurability is required. A genuine conversion privilege requires none. That is precisely its value if your health has changed.

Then get the converted premium quoted in writing. It is priced at your current age, and it will be materially higher than the term premium.

Conversion Deadline Type	How It Reads in the Contract	What Triggers It	Why It Gets Missed
Age-based	Convertible until the insured’s attained age (often 65–70)	A birthday	No notice is sent when it passes
Duration-based	Convertible within the first N policy years	A policy anniversary	Owners track the term length, not the conversion clock
Whichever comes first	Both limits stated together	The earlier of the two	Owners read one clause and stop
Product-restricted	Convertible only to a designated permanent plan	Carrier product availability	Assumed to mean any product the carrier offers

Sequence Matters: Review, Then Convert, Then Market

People sometimes ask whether they can sell the term policy and let the buyer handle conversion. In practice, no — until a permanent contract exists in your name, there is nothing with settlement value to transfer.

The sensible order is: request a free review while the term policy is still convertible, so you understand whether a converted policy would likely be a candidate; confirm the conversion terms and premium with the carrier; convert; then run the full settlement process on the new permanent policy.

Be clear-eyed about the uncertainty. Conversion costs real money up front and no offer can be promised before underwriting is complete. Anyone who suggests converting should be willing to explain plainly what is not guaranteed. This page is educational only and is not legal, tax, or investment advice — bring your own facts to a licensed advisor.

What the Converted Policy Looks Like

After conversion you own permanent coverage, typically universal life or whole life, and it is evaluated on the same terms as any other policy: the insured’s life expectancy, the death benefit, the premium required to carry it, and the cash surrender value that sets the floor.

A freshly converted policy has almost no cash value, so surrendering it would return close to nothing. That is not a problem for a settlement analysis — it means the alternative you are comparing against is small. Reported market outcomes generally range from about 10% to 35% of face value, and the federal GAO study (GAO-10-775) found sellers received roughly four to eight times cash surrender value. Related: cash surrender value.

One timing caution: a converted policy is a newly issued contract and typically starts a fresh contestability period of about two years, which many buyers prefer to wait out. Ask about that before you convert so the timing does not surprise you.

Documents to Pull Together

To start a free review, one page is enough: the policy cover page showing insurer, policy number, face amount, issue date, and the term period.

To go further, gather the full policy contract including the conversion provision, the most recent premium notice, and any letter about the end of the level term period. After conversion, request an in-force illustration on the new permanent policy at both current and guaranteed assumptions — see what an in-force illustration is.

If the policy is owned by a trust, or a divorce decree assigns the death benefit, gather that paperwork early. Title questions delay more cases than medical underwriting does.

If the Conversion Window Has Already Closed

It happens more often than not, and knowing your remaining options beats guessing.

• Keep it through the level period if the premium is still modest and someone would be hurt by losing the coverage.
• Let it lapse if nobody depends on it and the renewal premium is climbing — but make that a deliberate decision, not a default.
• Review other policies you own. An older universal life or whole life contract of $100,000 or more is a far likelier candidate.
• Ask anyway, in writing. Contract language varies and carriers occasionally reinstate rights. Confirm rather than relying on memory of what an agent said years ago.

If you also hold SILAC or Equitable Life & Casualty permanent coverage, see selling a SILAC whole life policy or a SILAC universal life policy, and browse the education center. For a free review, send the cover page or call (305) 209-7183.

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Frequently Asked Questions

Can I sell a term policy without converting it first?

Usually no. Term has no cash value and expires on a fixed date, so a buyer risks paying premiums and collecting nothing. The narrow exception is a seriously impaired insured with meaningful time remaining in the level term period, and that still requires a full review.

How do I find my conversion deadline?

Look for a section titled Conversion Privilege or Right to Convert in the policy. It states an attained age, a number of policy years, or both, and the earlier one controls. Ask the carrier to confirm the exact date in writing, since no reminder is sent.

My policy says Equitable Life & Casualty. Is that SILAC?

Yes. Equitable Life & Casualty rebranded as SILAC Insurance Company in 2020, so older contracts commonly carry the former name. Confirm with the carrier in 2026 who services your policy and, importantly, which permanent products remain available for conversion.

Will converting require a medical exam?

A genuine conversion privilege does not require evidence of insurability — that is the whole point of the feature. Confirm the language in your own contract, because some policies restrict the products or amounts available. Get the converted premium quoted in writing first.

How much higher will the premium be?

Materially higher, because the permanent policy is priced at your current age and designed to last for life rather than a fixed term. There is no standard multiple. Ask the carrier for the exact figure and weigh it against what the coverage still does for your family.

Should I convert only because I want to sell?

Only with eyes open. Conversion costs real money and no offer can be guaranteed before underwriting. Request a free review first to understand whether a converted policy would likely qualify, then discuss the decision with a licensed advisor or tax professional.

Does a converted policy start a new contestability period?

Generally yes — it is a newly issued contract, so a fresh contestability period of about two years typically applies. Many buyers prefer to wait that out, which affects timing. Ask about it before converting.

What should I send for a free policy review?

The policy cover page showing insurer, policy number, face amount, issue date, and term period. Include the conversion provision page if you have it. Call (305) 209-7183 if you cannot locate either one.

Related Reading

• What Policies Qualify For Life Settlement
• Cash Surrender Value Life Insurance
• What Is An In Force Illustration
• Education Center
• Sell My Silac Whole Life Policy
• Sell My Silac Universal Life Policy

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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.