Yes — a Southern Farm Bureau Life term policy can be sold in a life settlement, but in almost every case it has to be converted to permanent coverage first, and that depends on whether your conversion privilege is still open. Any carrier’s policy can be sold if the policyholder and the policy qualify; the buyer purchases the contract and the carrier’s permission is not required. Term is simply the one type where a deadline, not the carrier, decides the answer.
Term insurance has no cash value. There is nothing to surrender and nothing to borrow against. If you stop paying, the coverage ends and you receive nothing. That makes the conversion privilege — the contractual right to swap term coverage for permanent coverage without a new medical exam — the single most valuable feature in the contract, and the one people most often let expire without realizing it.
Conversion deadlines are usually tied to your attained age or to a number of years from issue, and they pass silently. No one calls to warn you. Check yours today. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Southern Farm Bureau Life Insurance Company.
In This Article
- Check Your Conversion Deadline Before Anything Else
- Why Term Almost Always Has to Be Converted First
- What Conversion Costs — and Who Pays for It
- The Exception: Serious Health Impairment
- About Southern Farm Bureau Life and Farm Bureau Membership
- If the Conversion Window Has Already Closed
- Timeline: Two Clocks Running at Once
- Frequently Asked Questions
Check Your Conversion Deadline Before Anything Else
Find your policy contract and look for a section headed “Conversion Privilege,” “Right to Convert,” or “Exchange Option.” It will state a limit, typically in one of two forms:
- An age limit — for example, convertible until the insured’s attained age 65 or 70.
- A duration limit — for example, convertible during the first 10 or 15 policy years, or during the level-premium period.
If the contract language is unclear, call Southern Farm Bureau Life’s policy service line and ask two direct questions: is this policy still convertible, and what is the last date I can exercise conversion? Ask them to confirm in writing. Verify with the carrier as of 2026 rather than relying on a decades-old brochure.
If the window is open, you have options. If it has closed, your realistic path narrows considerably — see the section on non-convertible term below.
Why Term Almost Always Has to Be Converted First
A settlement buyer is purchasing a stream of future premium payments in exchange for a death benefit that will eventually pay. A term policy that expires in six years and cannot be renewed offers no such certainty — if the insured outlives the term, the buyer gets nothing. That is why pure term rarely attracts offers on its own.
Conversion solves the problem. Exercising the privilege exchanges the term policy for a permanent contract — whole life, universal life, or in many cases a guaranteed universal life product — with a death benefit that does not expire. Crucially, conversion is done without new underwriting. Your health today does not matter to the conversion itself, which is why the privilege is so valuable to someone whose health has declined since the policy was issued.
Once converted, the policy is an ordinary permanent contract and is evaluated like any other settlement candidate. Read what policies qualify.
What Conversion Costs — and Who Pays for It
Here is the practical hurdle. Converting a term policy in your 70s means paying permanent-policy premiums at your attained age, which can be several times what the term premium was. Many people look at that number and conclude conversion is impossible.
It is worth getting a quote before assuming so, because the conversion premium is only a problem if you plan to keep paying it indefinitely. In a settlement, the buyer takes over premium payments after closing. Ask the carrier for a conversion quote showing which permanent products are available to you and the premium for each, then bring that quote into the review. What matters to a buyer is the total premium load required to carry the policy, not whether you personally could afford it forever.
Some contracts also allow partial conversion — converting only a portion of the face amount. If the full amount is unwieldy, ask whether that option exists.
| Your Situation | Realistic Path | Act By |
|---|---|---|
| Term still convertible, insured 65+ | Get a conversion quote, then a settlement review | Before the stated conversion age or policy year |
| Term still convertible, serious health impairment | Strongest case — convert and review promptly | As soon as possible; both clocks are running |
| Conversion window closed, good health | Usually no settlement market; keep or lapse | Confirm the deadline with the carrier first |
| Conversion window closed, serious impairment | Case-by-case; depends on remaining term | Worth a call before letting coverage lapse |
| Face amount under $100,000 | Generally too small for the secondary market | Consider keeping coverage if still needed |
The Exception: Serious Health Impairment
There is one situation where term coverage can sometimes draw interest without a conversion first, and that is a significant health impairment that materially shortens life expectancy. If the insured’s life expectancy is short relative to the remaining term, the buyer’s risk of the policy expiring worthless drops.
These cases are handled individually and depend entirely on the medical picture and how much term remains. This is not a general rule and should not be assumed. If the insured has a serious diagnosis and holds term coverage of $100,000 or more, it is worth a conversation before letting the policy lapse — but a conversion, where available, remains the more reliable route.
About Southern Farm Bureau Life and Farm Bureau Membership
Southern Farm Bureau Life Insurance Company is headquartered in Jackson, Mississippi and is jointly owned by a group of state Farm Bureau federations across the South. Policies are sold only through Farm Bureau agents to Farm Bureau members, so membership was a genuine condition of purchase and the company’s footprint is narrower than a national insurer’s. Verify the current participating-state list and the 2026 A.M. Best rating with the company.
Membership does not restrict what you may do with a policy you already own. It governed who could buy coverage, not who may hold the contract afterward. Also note that several unrelated companies use “Farm Bureau” in their names — check the exact company name on your policy cover page to be sure which insurer you are dealing with.
If the Conversion Window Has Already Closed
Be prepared for this answer, because it is common. If your term policy is no longer convertible and the insured is in reasonable health, there is usually no settlement market for it. That is a straight answer, not a sales tactic.
What is left in that case: keep the coverage in force through the level-premium period if you still need protection; check whether a renewal option exists and what the renewal premium would be; or, if coverage is genuinely no longer needed, let it lapse and redirect the premium. Some carriers also offer new coverage or an exchange program, though that would involve fresh underwriting. Whatever you decide, do not let a still-convertible policy go simply because you assumed the window was closed — confirm it first.
Timeline: Two Clocks Running at Once
Term sellers are managing two schedules simultaneously, and they do not line up neatly.
The conversion deadline is fixed and unforgiving. The settlement process runs roughly 60 to 120 days from application to funded payment — free review, documentation and an in-force illustration on the converted policy, medical records and life expectancy, written offer, contracts, independent escrow, ownership change, funding, then a state rescission window in most cases.
Start the review before the conversion deadline, not after. Send just the policy cover page — insurer, policy number, face amount, issue date — and, if you have it, the page of the contract describing the conversion privilege. Call (305) 209-7183 if the deadline is close. If you also hold permanent Southern Farm Bureau coverage, see our guides to selling a whole life policy or a universal life policy. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Can I sell a term life policy that has no cash value?
Usually only after converting it to permanent coverage. Term has no cash value and expires, so buyers cannot rely on it paying a death benefit. Conversion exchanges it for a permanent contract that does not expire, which is what makes a settlement possible.
How do I find out if my policy is still convertible?
Look in your contract for a section titled Conversion Privilege, Right to Convert, or Exchange Option. If the language is unclear, call the carrier’s policy service line and ask directly whether the policy is still convertible and what the final date is. Request written confirmation.
Do I have to take a medical exam to convert?
No. The whole point of a conversion privilege is that it lets you move to permanent coverage without new evidence of insurability. That is exactly why the privilege is so valuable to someone whose health has declined since the policy was issued.
The converted premium is far more than I pay now. Does that kill the deal?
Not necessarily. In a settlement, the buyer takes over premiums after closing, so what matters is the total premium load required to carry the policy — not whether you personally could afford it long term. Get a conversion quote from the carrier and bring it into the review.
Does Southern Farm Bureau Life have to approve the sale?
No. Once you hold a permanent policy, it is your personal property and you may transfer it. The company records the ownership change after closing. Pine Lake is not affiliated with, endorsed by, or acting on behalf of Southern Farm Bureau Life.
Does my Farm Bureau membership prevent a sale?
No. Membership was a condition of buying the policy, not a restriction on your ownership of it. It does not stop you from transferring a policy you already hold.
What if my conversion deadline has already passed?
In most cases there will be no settlement market for non-convertible term unless the insured has a serious health impairment and limited remaining term. Confirm the deadline with the carrier before assuming it has passed, since people frequently misread the contract language.
How long does everything take?
The settlement process itself runs roughly 60 to 120 days from application to funded payment, plus the time to complete the conversion beforehand. Because the conversion deadline is fixed, start the review well before it arrives rather than after.
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Related Reading
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Education Center
- Sell My Southern Farm Bureau Whole Life Policy
- Sell My Southern Farm Bureau 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.