Yes, usually, but with one condition: a term policy generally has to be convertible to permanent coverage before it can be sold, and the conversion privilege expires. The right to sell is not the issue. A life insurance contract is your property and a buyer purchases it from you without needing the carrier’s approval. The issue is that term insurance has no cash value and ends on a date certain, so a buyer purchasing pure term is buying an expense rather than an asset.
The workable path is conversion. Most individual term contracts include a privilege to exchange the policy for permanent coverage without new medical underwriting, at rates based on your original underwriting class and current attained age. Convert first, then the permanent policy can be evaluated for a settlement. Once the conversion window closes, that option is gone permanently.
Western & Southern Financial Group is a Cincinnati-based organization of affiliated insurance companies under a mutual holding company structure, so the entity that issued your term policy may be a member company under its own brand. Confirm the servicing company, your exact conversion deadline and the eligible permanent products directly with the carrier and get it in writing (verify as of 2026). Pine Lake Life Solutions is not affiliated with Western & Southern or its member companies.
In This Article
Locate the Conversion Privilege in Your Contract
Look for a section headed conversion privilege, right to convert, or exchange option. It defines the whole opportunity in a few paragraphs, and it is worth reading word for word rather than skimming.
You are after four facts. Whether conversion is permitted at all, since some term products are sold specifically as non-convertible. What you may convert into, which may be any permanent plan then offered or a single designated product. The deadline, usually stated as a policy duration, an attained age, or whichever comes first. And whether partial conversion is allowed, which is often the most cost-effective route.
Then verify all four with the servicing company. Contract language from decades ago may have been modified by endorsement, and administrative practice sometimes differs from what an old agent told you. Ask for the answer in writing with a specific date, not a general description.
Why the Deadline Is the Whole Story
Before the conversion deadline, you hold a contractual right to permanent coverage with no new health questions and no exam. After it, you hold a policy that will expire and no right to replace it.
For someone whose health has declined since the policy was issued, that difference is enormous. New coverage might be unaffordable or simply unavailable. The conversion privilege is the one bridge to a permanent contract, and a permanent contract is the thing the secondary market can actually purchase.
Nothing arrives in the mail to warn you. The window just closes. If your deadline is inside the next twelve months, treat it as time-critical: confirm the date, get a free policy review to learn whether the resulting permanent policy would attract settlement interest, and make an informed decision rather than letting the date pass by default.
Group and Employer Coverage: About 31 Days
If your term coverage came through an employer or association rather than as an individual policy, the timing is far tighter. Group life plans commonly allow conversion to an individual policy only within roughly 31 days of leaving employment or losing eligibility, and the notice is easy to miss during a retirement transition.
Miss the window and the coverage simply ends with nothing to sell. Use it and you may end up holding an individual permanent policy that can later be reviewed for a settlement. If you are retiring or changing employers, request conversion paperwork before your last day and confirm the exact deadline with the plan administrator, since group contract terms vary from employer to employer.
Portability, if your plan offers it, is a different feature from conversion. Portability usually continues term coverage rather than producing a permanent policy, so ask specifically which option you are being offered.
| Coverage Type | Typical Conversion Window | What to Do Now |
|---|---|---|
| Individual convertible term | Set by policy duration or attained age | Get the exact deadline in writing from the carrier |
| Individual non-convertible term | None | Generally not sellable; confirm before assuming |
| Group or employer term | Commonly about 31 days after leaving | Request conversion forms before your last day |
| Term rider on a permanent policy | Varies by rider language | Ask whether the rider converts separately |
| Already converted permanent policy | Not applicable | Request an in-force illustration and a free review |
What the Converted Policy Costs
Permanent insurance is far more expensive per year than term, and conversion prices the new policy at your attained age. The number can be jarring, especially in your seventies.
In many settlement transactions the conversion is coordinated so the buyer, not you, effectively bears the cost of the permanent policy going forward. Arrangements differ, and this is exactly the kind of detail that must be documented in writing before you sign anything. Do not convert into a premium you cannot carry on the assumption that a sale will follow.
Sequence matters. Confirm the conversion terms, get the policy reviewed, understand what an offer would realistically look like, and only then act. Ask about partial conversion too: converting enough face amount to reach a death benefit of $100,000 or more may make the policy marketable without converting coverage you do not need.
Which Company in the Group Services Your Policy
Western & Southern is a family of affiliated insurers under a mutual holding company structure, and policies across the group carry different brand names on the contract. That matters here because conversion requests and change-of-ownership filings go to the servicing company, and starting at the wrong service center wastes weeks you may not have if a deadline is approaching.
Compare the issued-by line on your policy to the name on your most recent premium notice. The premium notice is normally current. Call the number printed there, confirm which company services the contract, and ask for the conversion form, the eligible permanent products, and the deadline in writing. Verify rather than assuming.
How the Converted Policy Is Valued
Once you hold permanent coverage, valuation follows the standard pattern. Buyers weigh the death benefit, the premium needed to keep the contract in force, and a life expectancy estimate drawn from medical records. Federal research on the market (GAO-10-775) found sellers typically received roughly 10 to 35 percent of face value, on the order of four to eight times cash surrender value; a newly converted policy has essentially no cash surrender value, so that multiple is not the useful comparison here.
Candidates share a profile: insured around 65 or older, or younger with significant health changes; death benefit of $100,000 or more; contract in force past its contestability period. See what policies qualify and settlement versus surrender for the underlying comparisons.
A Short Action List
One: call the servicing company and get your conversion deadline and eligible products confirmed in writing. Two: send the term policy cover page, showing the insurer, policy number, face amount and issue date, for a free review. Three: if the policy looks like a candidate, sequence conversion and settlement properly with all costs spelled out in advance. Four: insist on independent escrow, itemized gross and net offer figures, and a clear explanation of your state’s rescission window.
Once a permanent policy is in place, the settlement process typically runs 60 to 120 days. If it turns out your term is not convertible, you will know within days and can stop without spending anything. Call (305) 209-7183 or send the cover page for a free policy review. More background sits in the education center, and if you also hold permanent coverage see selling a Western & Southern whole life policy.
Frequently Asked Questions
Can I sell a term life policy?
Generally only if it is convertible to permanent coverage and the conversion window is still open. Term has no cash value and expires, so buyers have little interest in it as-is. The standard route is to convert first and then evaluate the resulting permanent policy for a settlement.
What is the conversion privilege?
It is a contractual right to exchange your term policy for permanent coverage without new medical underwriting, priced at your current attained age using your original underwriting class. It is available only for a limited period defined by policy duration, attained age, or both. Once the period ends the right is gone permanently.
My term came through my employer. What is different?
Group life conversion rights commonly must be exercised within about 31 days of leaving the employer or losing eligibility, which is a much tighter window than individual coverage. Request the paperwork before your last day and confirm the exact deadline with your plan administrator. Also ask whether you are being offered conversion or portability, since they are different things.
Does Western & Southern have to approve a sale of the converted policy?
No. A buyer purchases the contract from you and the carrier’s consent is not required. The servicing company records the change of ownership and beneficiary once the forms are filed and accepted, which normally releases your funds from escrow.
The company name on my policy is not Western & Southern. Why?
Western & Southern Financial Group is a Cincinnati-based organization of affiliated insurers under a mutual holding company structure, and member companies issue policies under their own brands. Your rights are unaffected. Use the servicing company shown on your most recent premium notice for conversion requests and ownership changes.
Who pays for the converted permanent policy?
Permanent coverage costs considerably more than term, priced at your attained age. In many settlement transactions the conversion is coordinated so the buyer effectively carries the ongoing premium, but arrangements vary and must be documented in writing before you sign. Never convert into a premium you cannot afford on the expectation of a sale.
Can I convert just part of my term coverage?
Many contracts permit partial conversion, and it is often the efficient choice. Converting enough face amount to reach a death benefit of $100,000 or more can make the policy marketable without converting coverage you do not need. Ask the carrier whether your contract allows it and what the minimum is.
What should I send to find out where I stand?
The policy cover page, showing the insurer, policy number, face amount and issue date, plus the conversion section if you have it. That is enough for a free, no-obligation review. If the policy is not convertible, you will have a clear answer quickly.
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Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- How It Works Policy Options
- Education Center
- Sell My Western Southern Whole Life Policy
- Sell My Western Southern Universal 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.