Yes — a Washington National group life policy can be sold in a life settlement, provided you first convert the group certificate into an individual policy and both you and that policy qualify. Any carrier’s life insurance can be sold. The buyer purchases the contract from you, and the insurance company’s permission is not required — it simply records the ownership change at the end.
Group life is the one policy type where timing genuinely decides the outcome. While the coverage is still group coverage tied to an employer or an association, there is normally nothing to sell — you hold a certificate of participation, not a contract you own outright. Convert it, and it becomes an individual policy you own, which is exactly the kind of asset the secondary market buys.
This guide walks through the conversion window (typically about 31 days after you leave the group), what changes when the employer subsidy disappears, and how a converted policy is valued. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Washington National Insurance Company or CNO Financial Group.
In This Article
- First: Is Your Washington National Coverage Actually Life Insurance?
- Why Group Coverage Has to Become Individual Coverage First
- The 31-Day Window — And Why It Is the Whole Game
- Portability vs. Conversion — They Are Not the Same Thing
- Brace for the Premium Change When the Employer Subsidy Ends
- What a Buyer Looks At Once the Policy Is Individual
- Documents to Gather and What the Timeline Looks Like
- When Selling Is Not the Right Answer
- Frequently Asked Questions
First: Is Your Washington National Coverage Actually Life Insurance?
This is the single most common mix-up we see with Washington National paperwork, and it is worth two minutes before you do anything else. Washington National Insurance Company, a subsidiary of CNO Financial Group, built much of its business on supplemental health products — cancer, critical illness, and accident coverage — sold to middle-income households and through worksite payroll deduction. It also services legacy blocks from companies that came into the CNO family, including former Conseco-era business.
The result is that a lot of households have a Washington National certificate in a drawer and are not sure whether it pays a death benefit or reimburses medical costs. A supplemental health or critical illness certificate is not life insurance and cannot be sold in a life settlement. Look at the cover page: if it states a face amount or death benefit payable at death, it is life coverage. If it lists per-diagnosis or per-day benefits, it is supplemental health. Verify the servicing entity, current A.M. Best rating, and which legacy block your certificate sits in with the carrier directly as of 2026.
Why Group Coverage Has to Become Individual Coverage First
Under a group life plan, the master contract belongs to the employer, union, or association. You hold a certificate under it. You cannot transfer ownership of something you do not own, which is why group coverage as such is not a settlement candidate.
Conversion changes that. When you retire, leave the job, or the group plan ends, most group life plans give you a right to convert your coverage into an individual permanent policy issued in your name — with no new medical exam. Once that individual policy is issued, you are the owner. From that point forward it behaves like any other individually owned policy: you can name beneficiaries, borrow against cash value if the contract builds any, surrender it, or sell it.
The 31-Day Window — And Why It Is the Whole Game
Group life conversion rights are short-fused. In most group contracts the window runs roughly 31 days from the date coverage ends. Miss it and the right is simply gone; there is no appeal, no reinstatement, and no medical underwriting path back in if your health has changed.
That deadline is why we tell people in this situation to move on the paperwork before they do anything else — including before they decide whether they want to sell. Converting preserves the option. You can always surrender or lapse a converted policy later, but you cannot un-miss a conversion deadline. Ask your HR department or plan administrator for the conversion form on the day you learn coverage is ending, and confirm the exact number of days in writing, since plan documents vary and 31 days is a norm, not a rule.
Portability vs. Conversion — They Are Not the Same Thing
Two options often appear on the same HR handout, and they lead to very different places.
- Portability lets you keep group term coverage after leaving, usually at group rates, still under the master plan. It is typically cheaper in the short run, but you generally still hold a certificate — not an individually owned permanent contract — and coverage often terminates at a stated age.
- Conversion issues you an individual permanent policy in your own name, at individual rates, without underwriting. It costs more per month, and that price shock is real, but it is the path that creates an ownable, sellable asset.
If a settlement is even a possibility, conversion is usually the relevant door. Ask the plan administrator which option your certificate offers — some plans offer only one.
| Situation | Can It Be Sold? | What to Do First |
|---|---|---|
| Active group life certificate through an employer | Not while it stays group coverage | Nothing yet — note the conversion right in your plan documents |
| Coverage ending (retirement, layoff, plan change) | Yes, after conversion | Request conversion paperwork immediately — window is typically ~31 days |
| Ported group term coverage | Usually not — still a group certificate | Ask whether conversion to an individual policy is still available |
| Converted individual policy, $100k+ death benefit | Yes, if you and the policy qualify | Gather the annual statement and request an in-force illustration |
| Supplemental health or critical illness certificate | No — not life insurance | Confirm product type on the cover page with the carrier |
Brace for the Premium Change When the Employer Subsidy Ends
Group life is cheap because the employer usually pays part or all of it and the risk is spread across an entire workforce. When you convert, both of those advantages disappear at once. The new individual premium is priced on your attained age, and you pay all of it.
For someone converting in their late 60s or 70s, the jump can be several times what was coming out of the paycheck. That premium shock is, frankly, the reason many converted policies later become settlement candidates: the coverage is real and valuable, but the cost no longer fits a retirement budget. A settlement can turn that unaffordable premium into a lump sum instead of a lapse. Compare it honestly against simply letting the policy go — see settlement vs. surrender and whether a life settlement is worth it.
What a Buyer Looks At Once the Policy Is Individual
After conversion, the analysis is ordinary. Buyers generally want an insured in their senior years, a death benefit of $100,000 or more, a policy past its contestability period, and premiums that make economic sense to keep paying. Health history matters, because a shorter life expectancy means fewer premium payments for the buyer and a larger offer for you.
Federal research on the market (GAO-10-775) found sellers typically received roughly 10% to 35% of face value, or about 4 to 8 times what surrendering would have paid. A converted group policy often has little or no cash value in its early years, which means surrender would pay close to nothing — and that makes the gap between the two exits especially wide. Read what policies qualify for the full screen.
Documents to Gather and What the Timeline Looks Like
Start with three things: your group certificate or benefits summary, the conversion paperwork from the plan administrator, and — once the individual policy is issued — the most recent annual statement. Later in the process you will also want an in-force illustration showing projected premiums and values at both current and guaranteed assumptions.
To find out whether a review is even worth doing, all you need is the policy cover page. From there, expect the settlement process itself to run roughly 60 to 120 days: documentation and life-expectancy work, a written offer, contracts, an independent escrow account holding your funds, and finally the recorded ownership change. Most states then give you a rescission window to unwind the sale. Send the cover page for a free policy review, or call (305) 209-7183.
When Selling Is Not the Right Answer
Plenty of converted group policies should simply be kept. If your family still depends on the death benefit and the premium fits the budget, keep it. If the face amount is modest — many group certificates are one or two times salary and land well under $100,000 — the secondary market is unlikely to be interested, and that is worth knowing early rather than late.
Small policies, final-expense coverage, and burial policies generally are not settlement candidates. In those cases the honest alternatives are portability, reduced coverage, or simply keeping the policy in force at a level you can afford. A free review costs nothing and rules the question out quickly. This page is educational only and is not legal, tax, or investment advice.
Frequently Asked Questions
Can I sell my Washington National group life policy while I am still employed?
Generally no. While the coverage remains group coverage under the employer’s master contract, you hold a certificate rather than a policy you own, so there is nothing to transfer. The sellable asset appears only after you convert the coverage to an individual policy in your own name.
How long do I have to convert after leaving my job?
Most group life plans allow roughly 31 days from the date coverage ends. Plan documents vary, so confirm the exact deadline in writing with your HR department or plan administrator the moment you learn coverage is ending. Once the window closes, the conversion right is gone permanently.
Does Washington National have to approve the sale?
No. Once you own an individual policy, it is your personal property and you may transfer it. The carrier’s role is administrative — it records the new owner and beneficiary after closing. Pine Lake is not affiliated with or acting on behalf of Washington National.
My certificate says cancer or critical illness. Can I sell that?
No. Supplemental health products pay benefits tied to a diagnosis or treatment, not a death benefit, and they cannot be sold in a life settlement. Washington National is well known for supplemental health coverage, so check the cover page carefully before assuming you hold life insurance.
What is the difference between porting and converting my coverage?
Porting keeps you in group term coverage at group rates, usually still under the master plan and often ending at a set age. Conversion issues an individual permanent policy in your name with no medical exam. Conversion is the path that generally creates an ownable, sellable policy.
The converted premium is far more than my payroll deduction. Is that normal?
Yes. Group premiums are subsidized by the employer and spread across a whole workforce, while a converted individual policy is priced on your current age and paid entirely by you. That increase is one of the most common reasons converted policies end up being sold rather than lapsed.
How much could a converted policy sell for?
Federal research on the market found sellers typically received about 10% to 35% of face value, roughly 4 to 8 times cash surrender value. Since a newly converted policy often has little cash value, the difference between selling and surrendering can be substantial. Your actual offer depends on age, health, premiums, and face amount.
What do I need to send for a free policy review?
Just the policy cover page — the first page showing the insurer, policy number, face amount, and issue date. If you have not converted yet, send the group certificate and the conversion paperwork instead. There is no cost and no obligation.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
- Life Settlement Vs Surrender
- What Policies Qualify For Life Settlement
- Is A Life Settlement Worth It
- What Is An In Force Illustration
- How It Works Policy Options
- 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.