Yes — a term life policy can be sold in a life settlement, but in almost every case only after it is converted into permanent coverage, and only while the conversion right is still open. The policy is your property and a buyer purchases the contract from you, so the insurance company’s permission is not required and the carrier is not a party to the decision. What the carrier does control is the conversion privilege written into your contract — a right that expires on a schedule and is never announced twice.
Trustmark Insurance Company, headquartered in Lake Forest, Illinois, operates within a mutual holding company structure and started in 1913 as a fraternal association for railway employees. Its business today is voluntary and worksite benefits enrolled through employers, so a large share of the in-force book is workplace coverage rather than individually purchased term. Verify your certificate’s portability and conversion terms and the company’s current A.M. Best rating directly with Trustmark as of 2026.
Read this with the contract in front of you. Two facts decide everything: whether the coverage is convertible, and until when. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Trustmark.
In This Article
- Term Has Nothing to Sell Until It Is Converted
- Workplace Term Adds a Second Deadline
- How Conversion Deadlines Are Written
- Convert All of It, or Part of It?
- What the Converted Policy Needs to Look Like
- Two Clocks, One Sequence
- What You Might Receive
- If Conversion Already Expired
- Frequently Asked Questions
Term Has Nothing to Sell Until It Is Converted
Term insurance is pure death benefit for a set period. There is no account value, nothing to surrender, and no residual value if you stop paying — coverage simply ends.
That is why a term settlement is really a two-step transaction. Step one: exercise the conversion privilege to exchange the term coverage for a permanent policy from the same carrier, typically without new medical underwriting. Step two: the permanent policy, which will still be in force decades from now, becomes the asset a buyer can purchase.
The narrow exception is a term policy with a long remaining level period on an insured with a serious health impairment. That occasionally draws interest, but it is uncommon and not something to plan around.
Workplace Term Adds a Second Deadline
Because Trustmark’s book is heavily worksite-based, many people reading this hold a certificate rather than an individually owned term policy — and certificates run on a tighter clock.
Group and worksite coverage typically must be converted or ported within about 31 days of leaving the employer. Individual term conversion privileges usually run for years, expiring at a stated age or duration. If your coverage came through payroll deduction, assume the short clock applies until the service center tells you otherwise in writing.
Ask for four things in writing: the date coverage ends, the conversion deadline, the amount eligible for conversion, and the individual products available for conversion in 2026.
How Conversion Deadlines Are Written
On individually owned term, the privilege is expressed one of two ways: by age — convertible until the insured’s 65th or 70th birthday, for example — or by duration, such as convertible during the first ten years or through the end of the level premium period, whichever comes first.
Either way, nobody sends a reminder in the final month. The right lapses silently, and once it is gone the only route to permanent coverage is a new application with full medical underwriting at your current age and health. For many people in their late 60s and 70s, that means the coverage is effectively out of reach.
Look for a “Conversion Privilege” or “Right to Convert” provision in your contract, then confirm the date by phone and get it in writing.
Convert All of It, or Part of It?
Most convertible contracts allow partial conversion, and that flexibility often decides whether the whole plan works.
The conversion premium reflects your current age with no group subsidy, so converting the full face amount can produce a bill that is simply unaffordable. Converting a portion — enough to stay comfortably above the $100,000 death benefit buyers generally look for — keeps the premium survivable while the review runs.
Ask what the minimum converted face amount is and get quotes at two or three levels. Also ask which permanent products are available; a guaranteed universal life product, where offered, is priced as nearly pure death benefit with little cash value and is often the most efficient landing spot. See what policies qualify for a life settlement.
| Coverage Type | Typical Conversion Window | Sellable Before Conversion? | Sellable After Conversion? |
|---|---|---|---|
| Worksite or group term certificate | Commonly about 31 days after coverage ends | No | Yes, if it qualifies |
| Individually owned convertible term | To a stated age or duration | Rarely | Yes, if it qualifies |
| Non-convertible term | None | Rarely, only with serious impairment | Not applicable |
| Term with expired conversion right | Closed | No | Not available |
What the Converted Policy Needs to Look Like
After conversion, the policy is evaluated like any other candidate: insured roughly 65 or older, or younger with significant health conditions; death benefit of $100,000 or more; contract past its contestability period; premium level that makes economic sense for a buyer to carry.
Confirm one detail with the carrier: whether the converted policy carries the original issue date forward for contestability purposes. Most conversions do, but it is worth having in writing. Then request an in-force illustration on the new policy — here is what to ask for.
Two Clocks, One Sequence
The conversion clock can be as short as a month. The settlement process runs 60 to 120 days. You cannot fit the second inside the first, so order the steps deliberately:
- Confirm the conversion deadline in writing on day one.
- Send the policy cover page for a free, no-obligation review so you know whether a settlement is plausible at all.
- Get conversion premium quotes for full and partial amounts.
- Convert inside the window — do not wait for the review to conclude.
- Request the in-force illustration on the new policy and finish the review.
Keep paying the term premium the entire time. Lapsed coverage cannot be converted or sold.
What You Might Receive
Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of the death benefit, and averages several times cash surrender value. A converted term policy usually has little or no cash value, so the comparison is not settlement versus surrender — it is a lump sum versus watching coverage expire for nothing.
What not to expect: an offer near the face amount, or any offer at all on coverage under $100,000. Worksite term is frequently issued in smaller amounts, and honesty about that saves everyone time. Our page on whether a life settlement is worth it lays out both sides.
If Conversion Already Expired
Sometimes the window is closed and the answer is no. That is worth learning in a day rather than a month.
Options to discuss with your own licensed advisors: applying for new individual coverage if you are insurable; checking whether the contract includes a terminal illness or accelerated death benefit rider; reviewing whether other policies you own would qualify instead; or planning around the coverage ending at the close of the level period. Nothing on this page is legal, tax, or investment advice.
If you hold other Trustmark coverage, see our guides to selling a Trustmark universal life policy or a Trustmark whole life policy. For a free review, send the policy cover page or call (305) 209-7183.
Frequently Asked Questions
Can I sell term life insurance without converting it?
Usually not. Term has no cash value and expires at the end of its level period, so buyers rarely have a reason to purchase it. The main exception is a policy with a long remaining term on an insured with a serious health impairment, which is uncommon.
How do I find out if my policy is convertible?
Look for a “Conversion Privilege” or “Right to Convert” provision in the contract, then call the service center with your policy or certificate number and ask for the answer in writing. Request the deadline, the products available, and whether partial conversion is allowed.
My term came through my employer. Is the deadline different?
Yes, and it is usually much shorter. Group and worksite coverage typically must be converted or ported within about 31 days of the date coverage ends. If you were paying by payroll deduction, assume the short window applies until the plan administrator confirms otherwise in writing.
Does Trustmark have to approve the sale?
No. Once you own an individual permanent policy, it is your property and a buyer purchases the contract from you. The carrier only records the ownership and beneficiary change after closing. Pine Lake is not affiliated with, endorsed by, or acting on behalf of Trustmark.
Do I have to convert the whole face amount?
Usually not. Most convertible contracts allow partial conversion, which keeps the premium manageable while still producing a policy above the $100,000 threshold buyers generally look for. Ask for the minimum converted amount and get quotes at more than one level.
Will I need a new medical exam to convert?
Typically no — that is the purpose of a conversion privilege. The coverage converts at your original underwriting class without new evidence of insurability, though the premium is based on your current age. Confirm the specific terms of your contract with the carrier.
Should I convert before or after a policy review?
If the deadline is close, convert first. You can always evaluate afterward, but you cannot reopen an expired window. If you have time, get a free review from the cover page first so you know whether a settlement is realistic before committing to a higher premium.
What if the conversion window already closed?
Then the term coverage is very unlikely to be sellable. Practical alternatives include applying for new coverage if you are insurable, checking for an accelerated death benefit rider, or reviewing other policies you own. Talk with your own licensed advisors, or call (305) 209-7183 for a second read.
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Related Reading
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Sell My Trustmark Universal Life Policy
- Sell My Trustmark Whole Life Policy
- Education Center
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.