July 31, 2026
2:38 pm

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

Yes, in principle you can sell a Unum term life policy — but in practice term must almost always be converted to permanent coverage first, because term has no cash value and expires before most buyers would ever collect. The legal right to sell is not the barrier. A life insurance policy is personal property, confirmed transferable by the Supreme Court in 1911, and no insurer’s permission is needed. The barrier is arithmetic: a contract that ends in six years is worth nothing to someone pricing a death benefit fifteen years out.

Unum term raises one extra question first: is it truly individual coverage, or is it workplace coverage? Unum Group — formed in 1999 when UNUM Corporation, descended from Maine’s Union Mutual of 1848, combined with Chattanooga-based Provident Companies of 1887 — is overwhelmingly a workplace benefits organization. A great deal of Unum term life is issued through employers as group or voluntary coverage, where you hold a certificate rather than a policy you own.

This guide covers both cases: how to tell which you have, how conversion works, and why the deadline is the most time-sensitive fact on the page. Pine Lake Life Solutions is not affiliated with Unum or its subsidiaries.

In This Article

Individual Term or Workplace Term? Check This First
Why Term Has No Resale Value on Its Own
The Conversion Privilege and Its Expiration
Order of Operations: Review, Then Convert
Which Unum Company, and Who Services It Now
Compare Every Option Before Choosing
Closing the Transaction Safely
Frequently Asked Questions

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

Individual Term or Workplace Term? Check This First

Look at your documents. If you hold a certificate of coverage, if premiums came out of a paycheck, or if enrollment happened during an open enrollment period, you most likely have group or voluntary workplace coverage. In that structure your employer holds the master contract, and a certificate generally cannot be assigned or sold.

If instead you have a policy contract with your name as owner, bought through an agent and billed to you directly, you have individual term — which you own and can convert or assign on your own authority.

The distinction determines everything that follows. Workplace coverage requires conversion to an individual policy before any sale is possible, and that path is covered in detail in our guide to selling a Unum group life policy. Individual term follows the conversion rules in your own contract.

Why Term Has No Resale Value on Its Own

Term insurance is coverage for a set period at a level premium — commonly 10, 15, 20, or 30 years. No account value, no surrender value, nothing to borrow against. When the level period ends the policy either terminates or renews at annual rates that escalate steeply with age.

A settlement buyer takes over the premiums and waits for a claim, so the only question that matters is whether the policy will still be in force when that claim occurs. If the answer is no, there is no price at which a transaction makes sense.

One narrow exception: an insured with a serious, documented health decline may have a life expectancy short enough to fall inside the remaining level period. Those cases exist, hinge entirely on medical records, and are worth a free review rather than a guess.

The Conversion Privilege and Its Expiration

Most level term contracts and most workplace term plans include a right to convert coverage to an individual permanent policy from the same insurer with no medical exam and no health questions. Your original underwriting class carries forward, which is the whole point for anyone whose health has changed.

Two very different clocks apply. Individual term conversion rights typically end at a stated age — often in the insured’s sixties or early seventies — or after a set number of policy years, whichever comes first. Workplace coverage is far tighter: conversion after leaving an employer is commonly limited to roughly 31 days from the date coverage ends.

Verify your deadline in writing, either from the plan administrator or from Unum directly, as of 2026. Contracts differ from employer to employer and product to product, and no insurer is obligated to warn you the window is closing.

What You Hold	Owner	Conversion Window	Sellable?
Individual Unum term policy	You	Stated age or policy year in the contract	Usually only after conversion
Group term certificate through an employer	Employer holds the master contract	Commonly about 31 days after coverage ends	No, until converted
Voluntary or supplemental workplace term	Varies by plan design	Check the certificate	Depends on ownership and conversion
Already converted permanent policy	You	Not applicable	Yes, if the policy qualifies

The Conversion Privilege and Its Expiration

Order of Operations: Review, Then Convert

Converting raises your premium sharply, because permanent coverage at your current age is expensive. Doing it before you know whether the resulting policy has resale value is how people end up paying for an asset nobody wants to buy.

The sequence that protects you: confirm the conversion deadline and eligible products in writing; get a free policy review, which needs only the policy cover page or certificate; convert only if the resulting policy looks like a realistic candidate; then proceed with the settlement.

Screening is straightforward — generally an insured around 65 or older, or younger with a documented health decline; a death benefit of $100,000 or more; and premiums a buyer can economically carry. See what policies qualify for the full criteria.

Which Unum Company, and Who Services It Now

Unum Group operates through separately licensed insurers, including Unum Life Insurance Company of America, First Unum Life Insurance Company for New York business, Provident Life and Accident, and Colonial Life & Accident. Your policy or certificate names the issuer, and every form you file goes to that specific entity.

Unum has also used reinsurance to transfer risk on legacy blocks — most notably reinsuring its closed block of individual disability business to a third party in 2020, with similar arrangements pursued for long-term care exposure (verify current details as of 2026). Those transactions do not change your contract rights, but they can change which administrator handles service.

Unum’s US insurance subsidiaries have historically carried A.M. Best financial strength ratings in the “Excellent” range; confirm the current rating at ambest.com if it bears on your decision. The number on your premium notice or benefits statement is the fastest way to confirm who administers your coverage today.

Compare Every Option Before Choosing

For an aging term policy the realistic menu is short:

Let it lapse. Costs nothing, returns nothing, and is what happens to most term coverage.
Pay renewal premiums. They climb annually and quickly become punishing; occasionally justified when health is poor and the benefit is still needed.
Convert and keep. Right when a surviving spouse or dependent still relies on the coverage and the new premium is affordable.
Convert and sell. The monetizing path when the converted policy qualifies, often funding senior care or a Medicaid spend-down.
Accelerated death benefit. For a terminally ill insured, frequently faster and simpler than a sale. Check the contract or plan first.

Federal GAO research (GAO-10-775) found sellers of qualifying policies typically received about 10% to 35% of face value. That range applies to permanent coverage, not to unconverted term. More on each route in how the policy options work.

Closing the Transaction Safely

After conversion the process runs the usual course: in-force illustration from the carrier, medical records and a life-expectancy estimate, written offers, contracts, independent escrow, and an absolute assignment recorded by the insurer changing owner and beneficiary. Sixty to 120 days is normal.

Three non-negotiables. Every offer in writing. If a broker is involved, commissions disclosed in both gross and net terms. And no signature transferring ownership until the purchase price is with an independent escrow agent. After closing, most states provide a rescission period to unwind the sale.

Nothing on this page is legal, tax, or investment advice. Proceeds can be partly taxable depending on cost basis, and Medicaid rules vary by state. Bring in a CPA and, if eligibility is in play, an elder law attorney. For a free review, send the policy cover page or call (305) 209-7183.

Frequently Asked Questions

Can I sell Unum term life insurance?

Usually only after converting it to permanent coverage. Term has no cash value and expires, so a buyer has nothing to collect unless the policy will still be in force at the insured’s life expectancy. The conversion privilege in your contract or plan is what creates a sellable asset.

How do I tell whether my Unum term is individual or workplace coverage?

Look for the word certificate, payroll-deducted premiums, or enrollment during an employer open enrollment period, all of which point to workplace coverage. A policy contract listing you as owner and billed to you directly is individual coverage. The distinction determines whether you can act on your own or must go through the plan.

What is the conversion deadline?

For individual term it is typically a stated age or number of policy years in the contract. For workplace coverage it is commonly about 31 days from the date group coverage ends. Confirm your exact deadline in writing with Unum or the plan administrator as of 2026, since terms vary by contract.

Should I convert before or after getting a settlement review?

Before converting, get the review. Permanent premiums at your current age are much higher than term rates, and paying them for a policy that would not attract offers is a costly mistake. The review is free and only needs the policy cover page or certificate.

Does Unum have to approve a sale?

No. A buyer purchases the contract from you, and the insurer’s role is limited to recording the change of owner and beneficiary once the sale closes. Its own forms must be completed correctly, but approval is not part of the process.

Which Unum company issued my coverage?

Unum Group operates through several licensed insurers, including Unum Life Insurance Company of America, First Unum for New York business, Provident Life and Accident, and Colonial Life. The issuer is named on your policy or certificate, and all forms route to that entity. Confirm with the number on your statement.

What if my term policy is close to the end of its level period?

Act now. Renewal rates after the level period increase annually and become expensive quickly, and the conversion right often expires earlier than the level period does. Request both the renewal schedule and the conversion deadline so you can compare real numbers rather than assumptions.

How much might a converted policy sell for?

Federal GAO research found sellers typically received about 10% to 35% of face value, driven by the insured’s age and health, the death benefit, and the premium required to keep the policy in force. No responsible estimate is possible without reviewing the actual policy first.

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.

Call (305) 209-7183 · Request a review online →

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