Yes — a Washington National term life policy can be sold in a life settlement, provided you and the policy qualify; the buyer purchases the contract and the carrier’s permission is not needed. The catch with term is that in almost every case the policy has to be converted into permanent coverage first, and the right to convert has an expiration date buried in your contract.
That deadline drives everything on this page. Term insurance builds no cash value and stops paying at the end of the level period, so on its own it is not an asset a buyer wants. What is valuable is the conversion privilege — your contractual right to exchange the term policy for permanent coverage without a new medical exam. Convert first, then sell the permanent policy. That is the sequence.
Conversion deadlines are usually tied to an attained age, a policy duration, or whichever comes first. Nothing happens when the deadline passes. No letter arrives. The premium notice looks the same. You simply lose the option, and most people find out long afterward. If a settlement might matter to you, verify your deadline this week. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Washington National Insurance Company or CNO Financial Group. Education only — not legal, tax, or investment advice.
In This Article
Before Anything Else: Is It Life Insurance?
Washington National Insurance Company, founded in 1911 and now a CNO Financial Group subsidiary based in Carmel, Indiana, built much of its modern business on supplemental health insurance — cancer, critical illness, accident, and hospital indemnity coverage sold to middle-income and worksite customers, alongside its life products. CNO was named Conseco until its 2010 rename, and Washington National joined the group through Conseco’s acquisition in the late 1990s.
The practical consequence is that people regularly ask about selling a “Washington National policy” that turns out to be a supplemental health certificate. Those pay benefits during your lifetime for a diagnosis or a hospital stay. They are not life insurance, they have no death benefit to transfer, and they cannot be sold in a life settlement.
Look at your cover page. If it names a face amount payable at the death of the insured, you are holding life insurance. If it describes benefits for cancer treatment, an accident, or hospital days, you are not — and no honest party will suggest otherwise. A.M. Best has rated Washington National in the “A-” (Excellent) range in recent years; confirm the current 2026 rating with the carrier or A.M. Best.
Why Term Almost Always Has to Convert First
A settlement buyer is acquiring a future death benefit. Term coverage only pays if the insured dies inside the level period and then it simply ends, which makes a plain term policy nearly worthless to a buyer in its later years.
Conversion solves that. Exercising the privilege exchanges the term policy for a permanent contract — usually universal life or whole life, depending on what the carrier makes available under the conversion provision — with no new underwriting and no medical exam regardless of how the insured’s health has changed. The resulting permanent policy is a durable asset with a death benefit that does not expire, and that is what can be sold.
Neither step requires anyone’s approval in the sense people worry about. Conversion is a right you already paid for inside your premium. The subsequent sale is a transfer of property you own.
Where the Conversion Rules Live
Open the contract and look for a provision headed “Conversion,” “Conversion Privilege,” or “Right to Exchange.” It typically appears within the first several pages after the policy schedule. That provision will state the last age or policy year at which conversion is permitted and which permanent products you may convert into.
If the contract is lost, call the service number on your premium notice and ask three questions, requesting written answers: Is my conversion privilege still open? What is the last date I may convert? Which permanent policies am I eligible for, at what premium, and may I convert the full face amount or only part of it?
That last point matters more than it sounds. Some contracts and some riders permit only partial conversion, and a partial conversion can leave a death benefit too small to interest a buyer. As of 2026, confirm all of this with the carrier directly — conversion terms vary by product series and by issue year, and no general guide can tell you what your specific contract says.
| Document Header Says | What You Hold | Deadline That Governs |
|---|---|---|
| Policy, with you named as owner | Individual term insurance | Conversion age or duration limit in the contract |
| Certificate, referencing a master policy | Group coverage through an employer or association | Typically about 31 days after coverage ends |
| Rider or endorsement to another policy | Term rider on a permanent contract | Rider’s own conversion terms, often shorter |
| Benefits for cancer, accident, or hospital days | Supplemental health coverage | Not sellable; no death benefit to transfer |
Worksite and Payroll-Deduction Term: An Extra Wrinkle
A good share of Washington National’s life business has historically been written at the worksite, sold through payroll deduction at employer enrollment meetings. If that describes how you bought your coverage, check one thing carefully: whether you hold an individual policy that you own, or a certificate issued under an employer’s master group policy.
Individual policies sold at the worksite are yours. You own them, you can usually take them with you when you leave, and the ordinary conversion rules apply. Group certificates are different — the employer owns the master policy, coverage typically ends when employment does, and your exit rights run through conversion or portability within a short window, commonly around 31 days.
Read the document header. If it says “certificate” and references a group or master policy number, treat the 31-day window as the operative deadline and contact the plan administrator immediately. If it says “policy” and names you as owner, you are on the individual track described above.
The Other Path: A Change in Health
There is a narrower route that skips conversion. If the insured has developed a serious health condition since the policy was issued, and enough of the level term period remains, a buyer may purchase the term policy as it stands. The reasoning is straightforward: when independent underwriters estimate a life expectancy that falls well inside the remaining term, the contract carries real expected value on its own.
These transactions are the exception, not the norm, and they turn entirely on medical records rather than on policy features. If the insured’s health has changed materially, disclose that at the very start of a review. It changes the analysis, the likely outcome, and the timeline.
For the general screen buyers apply, see what policies qualify for a life settlement.
The Face-Amount Reality Check
Settlement buyers generally look for a death benefit of $100,000 or more. The reason is arithmetic, not snobbery: medical underwriting, life-expectancy reports, legal review, and escrow cost roughly the same on a $40,000 policy as on a $400,000 one, so small policies cannot support the transaction.
Worksite and middle-market term is frequently written well below that line. If your face amount is $25,000 or $50,000, converting it will not produce something a buyer wants, and you would be taking on a much higher permanent premium for nothing. Check the cover page before spending any effort on conversion research.
Where a small policy is concerned, the real questions are different: is the coverage still needed, is the premium affordable, and does the contract offer any paid-up or reduced option at the end of the level period? Ask the carrier those instead. Our education center covers the alternatives.
Convert-Then-Settle in Practice
If the pieces line up — open conversion privilege, adequate face amount, insured in the senior years or with meaningful health history — the sequence looks like this.
Get the policy screened first. Do not convert on the assumption a sale is guaranteed; find out what the market is likely to do before you commit to a higher permanent premium. Then get the converted premium quoted in writing and confirm the convertible face amount. Then convert, and immediately request an in-force illustration on the new permanent policy at current and guaranteed assumptions — see our explainer.
Budget roughly 60 to 120 days for the settlement itself, plus extra time for the conversion, which is a separate carrier process with its own forms. Keep every premium current throughout; a lapse ends the transaction. Get any offer in writing, ask for the figure net of all commissions and fees, and insist that funds sit in independent escrow until the insurer confirms the ownership change. Most states then allow a rescission window. Published GAO data (GAO-10-775) put typical proceeds at about 10% to 35% of face value across the market.
To begin, send the policy cover page for a free, no-obligation review or call (305) 209-7183. Related reading: is a life settlement worth it and our guide to Washington National universal life.
Frequently Asked Questions
Can I sell a Washington National term policy without converting it?
Usually not. Term has no cash value and ends at the close of the level period, so buyers rarely purchase it as-is. The exception is an insured with a serious documented health condition and enough remaining term for the coverage to carry real expected value. Otherwise, conversion to permanent coverage comes first.
How do I find out whether my conversion privilege is still open?
Look in the contract for a provision titled Conversion or Right to Exchange and read the age or duration limit it states. If you cannot find the contract, call the service number on your premium notice and request the last conversion date in writing. Confirm this with the carrier in 2026, since terms vary by product series and issue year.
Does converting require a medical exam?
No. That is the entire value of the conversion privilege — it lets you obtain permanent coverage without new underwriting, no matter how the insured’s health has changed. Once the deadline passes, that protection is gone and health can no longer be worked around.
I bought my policy through payroll deduction at work. Does that change things?
It might. Check whether your document is an individual policy that names you as owner or a certificate issued under an employer’s master group policy. Individual worksite policies follow ordinary conversion rules. Group certificates typically must be converted or ported within about 31 days of leaving the employer.
How much more will the converted policy cost?
Usually a great deal more, because permanent coverage is priced at the insured’s current age and is designed to last for life. Get the converted premium quoted in writing before electing, and confirm you can carry it through a settlement process that commonly runs 60 to 120 days.
My term policy is $50,000. Is that worth converting to sell?
Realistically no. Buyers generally look for $100,000 or more in death benefit because the fixed costs of a settlement do not shrink with policy size. Converting a small policy would raise your premium substantially with little prospect of an offer. Ask the carrier instead about options at the end of the level period.
Does Washington National have to approve the sale?
No. Once you hold an individual permanent policy, it is personal property, and the owner’s right to transfer it was affirmed by the Supreme Court in Grigsby v. Russell in 1911. The carrier records the new owner after closing but does not approve or block the transaction.
Is Pine Lake affiliated with Washington National?
No. Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of Washington National Insurance Company or CNO Financial Group. This page is educational and is not legal, tax, or investment advice. Send the policy cover page for a free review or call (305) 209-7183.
Find out what your policy is worth — free, confidential, no obligation.
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Related Reading
- What Policies Qualify For Life Settlement
- What Is An In Force Illustration
- Is A Life Settlement Worth It
- Education Center
- Sell My Washington National Universal Life Policy
- Sell My Washington National Whole 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.