Yes – a Voya Financial term life policy can be sold, but almost always only after it is converted to permanent coverage, because term insurance by itself has no cash value and expires. The good news is that the conversion and the sale can be arranged as part of the same transaction, and buyers frequently absorb the conversion cost. The bad news is that conversion privileges expire, and once yours does, the policy is generally worth nothing on the secondary market.
Voya owners have an extra wrinkle. Voya Financial started as ING U.S., the American arm of ING Groep, rebranded in 2014, and then sold its individual life insurance business to Resolution Life in a transaction that closed in January 2021. A great many in-force policies were originally issued by Security Life of Denver Insurance Company. So the company servicing your term policy in 2026 may not be the company whose name is on the cover page – check your latest premium notice.
This guide explains how the conversion privilege works, what to ask the service center, and why term owners are the group most likely to lose real money by waiting. Pine Lake Life Solutions is not affiliated with Voya Financial, ING, Security Life of Denver, or Resolution Life.
In This Article
Why Term Has to Be Converted First
A term policy is a rental agreement on a death benefit. You pay for a set number of years, and if the insured dies during that window, the beneficiaries collect. If not, the policy simply ends. There is no account value, no surrender value, nothing to cash out. A buyer purchasing a term policy on its own would be buying an asset scheduled to disappear on a known date – which is why they generally will not.
What buyers will purchase is permanent coverage. Most term policies include a conversion privilege: a contractual right to exchange the term policy for a permanent policy from the same carrier, without a new medical exam, at the insured’s original underwriting class. That last part is the treasure. Someone in poor health who could never qualify for new coverage can still convert, because health is not re-evaluated.
Finding Your Conversion Deadline Before It Finds You
Conversion privileges do not last forever. They typically end at a stated attained age, at the end of a stated number of policy years, or before the level-premium period expires – whichever comes first. The exact rule lives in your policy contract, usually under a heading like Conversion Privilege or Right to Convert.
Call the administrator listed on your current statement and ask three questions in plain words. What is the last date I can convert this policy? What permanent products is it convertible into as of 2026? And what would the premium be on the converted policy at my current age? Get the answers in writing if you can. Conversion terms on older Voya and ING-era contracts vary by product series, so verify yours specifically rather than relying on anything general – including this page.
Why the Deadline Makes This Time-Critical
Here is the part that costs families real money. A convertible term policy on an insured in declining health can be a genuinely valuable asset. The day after the conversion window closes, that same policy is typically worth zero. Nothing about the insured changed; only the calendar did.
Because a settlement runs 60 to 120 days end to end – document gathering, medical underwriting, buyer bidding, closing – a conversion deadline six months out is tight, and one 90 days out is very tight. If your deadline is within a year, treat it as urgent rather than something to circle back on. Have someone look at it now, even if you ultimately decide to keep the coverage.
| Situation | Can It Be Sold? | What to Do First |
|---|---|---|
| Convertible term, window still open, $100k+ face | Usually yes | Request a written conversion quote; act on the deadline |
| Convertible term, window closes within 12 months | Yes, but urgent | Start the review immediately – the process takes 60-120 days |
| Conversion window already expired | Generally no | Check for an accelerated death benefit rider |
| Non-convertible term | Generally no | Compare the cost of continuing against new coverage |
| Face amount under $100,000 | Rarely | Ask before assuming; small policies seldom clear minimums |
What Happens If a Voya-Era Policy Has No Conversion Option
Some term products are non-convertible, and some conversion windows have already closed. Be honest with yourself about that possibility rather than hoping. If there is no conversion right, the settlement market almost certainly cannot help, and any company that tells you otherwise deserves scrutiny.
That is not the end of the analysis, though. Check the policy for a terminal illness or chronic illness accelerated death benefit rider, which pays part of the death benefit directly to the insured under qualifying conditions and is usually faster and simpler than any sale. Check whether an annual-renewable version of the coverage can be continued, expensively, past the level period. And if a family member has an insurable interest and would benefit from the policy staying in force, sometimes the right answer is that they take over the premiums.
Documents to Gather
For a term policy the document list is short but specific. Start with the cover page and the policy schedule showing face amount, issue date, level-premium period, and the conversion provision. Add your most recent premium notice, which confirms the policy is in force and who currently services it.
Then request a written conversion quote from the administrator: which permanent products are available, at what premium, and by what date. That quote does the same job an in-force illustration does for a universal life policy – it tells a buyer what the asset will cost to carry. Finally, the insured signs HIPAA authorizations so life expectancy can be assessed. That is the whole file.
How the Sale and the Conversion Fit Together
The usual sequencing surprises people. You do not have to convert first, pay the higher permanent premiums out of pocket, and then hope a buyer materializes. In most transactions the buyer’s offer is made contingent on conversion, and the conversion is executed as part of closing, with the buyer funding the converted policy going forward.
Once ownership transfers, the new owner pays all future premiums. You have no further obligation and no further coverage. The lump sum is yours. Most states provide a rescission period after closing that lets a seller unwind the transaction within a set number of days by returning the money – ask what your state’s window is before you sign.
Who Qualifies
Buyers look for an insured generally 65 or older, or younger with a significant health change; a death benefit of $100,000 or more; and a conversion right that is still open. A $250,000 convertible term policy on a 79-year-old with serious health issues is a real candidate. A $50,000 policy on a healthy 58-year-old is not, and you deserve to hear that plainly rather than be strung along.
Also weigh whether the coverage is still needed. If a surviving spouse would depend on that death benefit, keeping the policy – and possibly converting it for your own reasons – may be the better answer. And if you are planning a Medicaid spend-down, settlement proceeds are countable resources, so coordinate with an elder law attorney first. Nothing here is legal or tax advice.
Frequently Asked Questions
Can I sell a term policy without converting it?
It is uncommon. Term coverage has no cash value and expires on a known date, so buyers almost always require conversion to permanent coverage first. The conversion is usually handled as part of the closing rather than something you pay for in advance.
Where do I find my conversion deadline?
It is written into the policy contract, typically in a section titled Conversion Privilege. If you cannot locate the contract, call the service number on your most recent premium notice and ask for the last date you may convert and what products it converts into. Get the answer in writing when possible.
Who services my Voya term policy now?
Voya Financial sold its individual life insurance business to Resolution Life in a transaction that closed in January 2021, and many in-force policies were originally issued by Security Life of Denver Insurance Company under the ING and Voya eras. Your current administrator is printed on your latest statement. Confirm it directly rather than assuming as of 2026.
Does converting require a new medical exam?
Generally no, and that is the whole point of the privilege. Conversion is typically guaranteed at the insured’s original underwriting class regardless of current health, which is why the option is so valuable to someone whose health has declined.
What if the premium after conversion is far higher?
It usually is, because permanent coverage at an advanced age costs more than the term rate you were paying. In a settlement structure, though, the buyer takes over those premiums after closing, so the higher cost is priced into the offer rather than paid by you.
How long does the whole thing take?
Plan on 60 to 120 days from the first conversation to funds received, covering document gathering, medical underwriting, buyer bidding, and closing through escrow. If your conversion deadline falls inside that window, say so at the very first call so the file can be prioritized.
What does a free policy review cost me?
Nothing. Send the policy cover page and we can tell you whether the secondary market is likely to be interested and what to ask your carrier about conversion. There is no obligation, and no one is required to sell. Call (305) 209-7183 with questions.
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Related Reading
- What Policies Qualify For Life Settlement
- How It Works Policy Options
- Education Center
- What Is A Rescission Period
- Sell My Voya Universal Life Policy
- Sell My Voya Variable Universal 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.