Yes, a term life policy connected to The Standard can be sold, provided the contract still carries a conversion privilege that can turn it into permanent coverage. Ownership is never the barrier. You own the policy, the buyer buys the contract, and the insurance company does not approve or deny the transaction. The barrier with term is the expiration date, because a buyer will not pay for a death benefit that is scheduled to disappear.
Term insurance carries no cash value. When the level premium period ends, premiums typically jump sharply or coverage stops altogether. That is fine when the goal was temporary protection during working years. It is a problem when someone in their seventies realizes the coverage they have paid for since their forties is about to vanish.
The conversion privilege is the escape hatch, and it is on a timer. This guide explains how to find your deadline, what it costs to convert, and how to judge whether spending that money makes sense. Pine Lake Life Solutions is not affiliated with The Standard or Standard Insurance Company. For a free policy review, send us the policy cover page.
In This Article
First, Confirm Whose Policy It Actually Is
The Standard, or Standard Insurance Company, is a Portland, Oregon carrier and the main subsidiary of StanCorp Financial Group. Its business has centered on workplace benefits, group and individual disability, group life, dental and vision, retirement plan services and individual annuities. Individual term life has not been the company’s headline product line.
StanCorp was acquired by Meiji Yasuda Life Insurance Company in a deal announced in July 2015 for roughly $5 billion and completed in March 2016 after Oregon regulatory review. In 2025, reports indicated Meiji Yasuda agreed to acquire Legal and General’s U.S. term life business, which is worth verifying directly rather than assuming, but it suggests a parent company that has been buying U.S. life blocks.
People often hold a term certificate obtained through an employer and assume it is an individual policy. Those are very different things. Check the document heading for the words group certificate, and if it is group coverage, read our page on selling a Standard group life policy instead.
Why Term Alone Has Almost No Market Value
A life settlement buyer is purchasing a future death benefit and agreeing to pay premiums until it is paid. With permanent coverage, that payout is a matter of when. With term, the coverage may simply end at 75, 80, or the end of a 20-year period, and if the insured outlives it the buyer has paid premiums for nothing.
That is why pure term policies with no conversion right are typically declined. Converted policies are a different story, because a permanent contract has no expiration date to outrun.
There is one exception worth knowing. If the insured has a serious illness and a life expectancy estimate that lands well inside the remaining term period, some buyers will consider the policy as is. This is uncommon, requires strong medical documentation, and should never be assumed.
Finding Your Conversion Window
Conversion terms are written into the policy, usually in a provision called conversion privilege, exchange privilege, or conversion option. It will specify a last conversion date, expressed as a policy year, a calendar date, or the insured’s attained age. Whichever limit arrives first governs.
If the policy pages are lost, request a complete copy from the current administrator along with a written statement of remaining conversion rights and eligible amounts. Some contracts allow conversion of only part of the face amount, or restrict conversion in the final years of the level period.
Do this immediately if you are anywhere near a deadline. Every year, people learn about settlements weeks after their conversion right expired, and there is no remedy. If you have several years left, you have room to evaluate calmly.
| Term policy scenario | Realistic outcome | Next step |
|---|---|---|
| Conversion right open, insured in senior years | Best case for a settlement | Get a written conversion quote and an evaluation |
| Conversion right open, insured healthy and under 65 | Offers unlikely today | Note the deadline and revisit later if health changes |
| Conversion expired | Usually not sellable | Compare renewal cost against dropping coverage |
| Serious illness, coverage runs years past life expectancy | Occasionally sellable as is | Gather full medical documentation before submitting |
| Face amount under $100,000 | Below most buyer minimums | Consider keeping the coverage if affordable |
What Conversion Costs and What You Get
Conversion prices the new permanent policy at your attained age, using the carrier’s current conversion products and rates, without new medical underwriting. For a healthy 55-year-old the increase may be manageable. For a 78-year-old it can be dramatic, because the carrier is now insuring a life for the rest of it.
Ask the administrator for a written quote showing the conversion premium for each product offered and each face amount you might select. Converting a smaller amount is often possible and can be the difference between an affordable premium and an impossible one, though converting too little may put you under the $100,000 threshold most buyers require.
Also ask whether the converted policy would carry a no-lapse or secondary guarantee. Guarantees cap the carrying cost for a buyer and can improve an offer, which is a detail most sellers never think to raise.
A Hypothetical Comparison
Consider a 76-year-old with $300,000 of level term coverage, three years left in the level period and a conversion right expiring at age 77. Current premium is $3,600 a year. A converted permanent policy might cost several times that annually, which the owner cannot sustain on a fixed income.
If the coverage simply lapses, the family receives nothing and the premiums paid over 25 years produced no asset. If the policy converts and a settlement offer arrives in the 10 to 35 percent range, that would hypothetically be $30,000 to $105,000 before fees. The realistic number depends entirely on health.
These are labeled illustrations, not offers. The honest framing is this: conversion is a bet with real cost. It makes sense when age and health suggest a market exists, and it does not when the insured is healthy, the face amount is modest, and the premium is punishing.
How a Sale Proceeds Once You Own Permanent Coverage
You provide the policy, the most recent statement, an in-force illustration for the converted policy, and signed medical authorizations. Independent underwriters review records and estimate life expectancy. Licensed buyers bid. If you accept an offer, the closing package includes change of ownership and change of beneficiary forms sent to the carrier, funds go into escrow, and money is released once the carrier confirms the transfer.
Timeline is typically 60 to 120 days. Most states then provide a rescission period letting you return the money and reverse the sale. Our process overview covers each step in order.
Get outside advice on the parts that are yours alone. A CPA should explain tax treatment of the proceeds. If Medicaid planning is involved, an elder law attorney should look at how a lump sum interacts with eligibility rules.
Alternatives Worth Considering First
If the death benefit is still needed by a spouse or dependent, keeping the policy is usually right even if it costs more. If the insured is terminally ill, check for an accelerated death benefit rider, which pays part of the benefit early with much less process. If the goal is simply to stop paying, letting term lapse costs nothing but produces nothing.
Watch for pressure tactics. Nobody can promise a dollar figure before underwriting, and you should never pay a fee up front for an evaluation. Ask whether your policy will be shopped to multiple buyers and how the person helping you gets paid.
Pine Lake Life Solutions offers education and free policy reviews only, and is not affiliated with The Standard. Nothing here is legal, tax, or investment advice. Call (305) 209-7183 or send the cover page of your policy for a straight answer.
Frequently Asked Questions
Can term life insurance be sold without converting it?
Rarely. Buyers avoid coverage that expires while the insured is likely still living. The main exception is a seriously ill insured whose life expectancy estimate falls well within the remaining term, and even then documentation must be strong.
Where is my conversion deadline written?
In the policy contract, typically under a conversion or exchange privilege provision, stated as a policy year, a final date, or an attained age. If you cannot find the pages, request a written statement of remaining conversion rights from the administrator.
Who owns The Standard today?
Standard Insurance Company is the main subsidiary of StanCorp Financial Group in Portland, Oregon, which Meiji Yasuda Life Insurance Company agreed to acquire in July 2015 and completed acquiring in March 2016. The Standard has continued under its own brand.
Does the carrier have to approve the sale?
No. The policy is your property once you own it individually. The company only records the change of ownership and beneficiary submitted at closing, and cannot block a properly documented transfer.
Is it worth paying a high conversion premium?
Only if there is a realistic prospect of an offer. Get an evaluation before converting when the timeline allows, and remember that a freshly converted policy has almost no cash value if no buyer bids.
How much do term policies sell for after conversion?
The same ranges apply as any settlement, commonly 10 to 35 percent of the death benefit, driven by the insured’s age, health, and the premiums required going forward. Firm numbers only come after underwriting.
How long does the whole process take?
Generally 60 to 120 days from submission to funding, with medical record retrieval the slowest step. If a conversion is needed first, add the carrier’s processing time for that on top.
What if my coverage is through my employer?
Then it is likely a group certificate the employer’s plan owns, not an individual policy. You would normally need to convert it to individual coverage within the plan’s window, commonly about 31 days after coverage ends.
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
- How It Works Policy Options
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- What Is A Rescission Period
- Sell My The Standard Group Life Policy
- Sell My The 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.