Yes, term coverage can end up in a life settlement, and no carrier can stop you from selling a policy you own, but with term there is a condition: the certificate almost always has to be convertible and the conversion window still open. Term has no cash value and a hard expiration date, so on its own it rarely draws an offer. Convert it into permanent coverage, and it becomes a normal settlement candidate.
Conversion deadlines are the part people miss. They are set by policy duration, by the insured’s age, or by whichever arrives first, and they pass without any warning letter. Every year, families discover the window closed months earlier and a valuable option went with it.
Pine Lake Life Solutions is not affiliated with, endorsed by, or acting on behalf of WoodmenLife, and this page is educational only, not legal, tax, or investment advice. If you want your certificate looked at, send the cover page for a free policy review or call (305) 209-7183.
In This Article
- Make One Phone Call Today
- Why Term Alone Almost Never Sells
- What Conversion Actually Does
- WoodmenLife’s Fraternal Structure and Your Certificate
- If the Coverage Came Through a Group or Association
- After Conversion, Does It Qualify?
- Sequence and Timing
- Start With a Free Review
- Frequently Asked Questions
Make One Phone Call Today
Before you read the rest of this, call the service number on your WoodmenLife premium notice and ask four questions:
- Is this term certificate convertible?
- What is the last date I can convert?
- Which permanent products can I convert into, and at what premium?
- Can I convert only part of the death benefit?
Ask for the answers in writing, or at minimum write down the date and the representative’s name. Everything else on this page depends on those four answers, and the answer to number two is time-sensitive in a way nothing else in your financial life is.
Why Term Alone Almost Never Sells
Term insurance is pure coverage for a defined period. There is no account value, no surrender value, and nothing left over if you stop paying. When the level premium period ends, the cost typically jumps to a steeply increasing annual rate, and the certificate terminates outright at the contract’s expiry age.
A settlement buyer is betting on eventually collecting the death benefit. With term, the buyer is racing an expiration date that is written into the contract, and usually losing that race. The exception is real but narrow: when the insured has a serious health impairment and a life expectancy short relative to the remaining term, a term certificate can attract an offer without conversion.
What Conversion Actually Does
A conversion privilege lets you exchange term coverage for a permanent certificate with the same carrier, typically without new medical underwriting. That last detail is the value. Someone diagnosed with a serious condition after buying term generally could not qualify for new coverage anywhere, but the conversion right does not care about current health.
The converted certificate is permanent, has an owner, can build value, and can be sold. Premiums are meaningfully higher than term premiums at the same face amount, and the older the insured, the wider the gap. In many settlement cases the buyer assumes premium payments after closing, so the practical exposure is the premium during the months between conversion and funding. Ask for that number before you commit.
WoodmenLife’s Fraternal Structure and Your Certificate
WoodmenLife began in 1890 in Omaha as Woodmen of the World, founded by Joseph Cullen Root, and took its current name in 2015. It is a fraternal benefit society: members hold certificates, the society has no shareholders and pays no shareholder dividends, and members belong to local chapters.
Two things follow. First, the conversion products available to you are the society’s own permanent certificates, so ask specifically what the menu looks like. Second, fraternal certificates can contain membership-linked language affecting an absolute assignment to a non-member institutional owner. Verify with WoodmenLife in writing whether your converted certificate could be assigned, as of 2026, before you pay a higher premium on the assumption that it can.
| Question to Ask WoodmenLife | Why It Matters | What to Do With the Answer |
|---|---|---|
| Is the certificate convertible? | No conversion right usually means no settlement path | If no, reconsider whether you still need the coverage |
| What is the last conversion date? | Deadlines expire with no notice | Put it on the calendar and work backward |
| Which permanent products are available? | Determines premium and long-term cost | Get quotes for each before deciding |
| Can I convert part of the face amount? | Partial conversion lowers the premium | Convert only what makes economic sense |
| Is new underwriting required? | A standard privilege requires none | Confirm in writing if health has changed |
| Can the converted certificate be assigned? | Fraternal contracts can limit assignment | Resolve before paying a higher premium |
If the Coverage Came Through a Group or Association
Coverage obtained through an employer or an association follows different rules than an individual certificate you bought yourself. Group coverage generally cannot be sold while it stays group coverage, because the master contract belongs to the employer or association rather than to you. It must be converted or ported into an individual policy first, and the window after leaving is typically only about 31 days.
Check your paperwork to see which you have. If a certificate lists an employer or association as the contract holder, treat the timeline as urgent.
After Conversion, Does It Qualify?
The converted certificate is judged like any permanent policy. Buyers generally want a death benefit of $100,000 or more and an insured in the senior years, or younger with a significant health impairment. Cash value at conversion is usually minimal, so the relevant comparison is not settlement versus surrender. It is settlement versus letting the term expire and receiving nothing at all.
Market studies, including the GAO’s (GAO-10-775), describe sellers typically receiving roughly 10% to 35% of face value. Whether your case lands anywhere in that band depends on facts nobody can guess from the outside. See what policies qualify for the screening criteria.
Sequence and Timing
Do it in this order: confirm the deadline, get conversion quotes, request a preliminary settlement review, then convert if the review is encouraging, then complete the settlement. A full settlement typically takes 60 to 120 days, and conversion processing sits in front of that. You cannot sell first and convert later, which is why the deadline drives everything.
Keep the term premium current the entire time. A lapse ends the conversion right along with the coverage.
Start With a Free Review
A review costs nothing and tells you quickly whether conversion is worth the premium. Send the certificate cover page or call (305) 209-7183. If the answer is no, you will hear it plainly and you will not have spent money finding out.
If you also hold permanent WoodmenLife coverage, see our guides to selling a WoodmenLife universal life certificate or a WoodmenLife guaranteed universal life certificate, or browse the education center.
Frequently Asked Questions
Can I sell a term certificate without converting it?
Only rarely. It generally requires an insured with a serious health impairment and a life expectancy short enough that a buyer expects the death benefit to be paid before the term ends. For most people, conversion comes first.
Where do I find my conversion deadline?
It is in the conversion provision of your certificate, but the fastest route is calling the service number on your premium notice and asking for the last eligible conversion date in writing.
Will converting require a medical exam?
A standard conversion privilege does not require new underwriting, which is exactly why it matters after a health change. Confirm the terms for your certificate, since provisions vary by series and issue year.
How much more expensive is permanent coverage?
Considerably, and the gap widens with age. Get an exact quote before deciding. In many settlement cases the buyer takes over premiums after closing, so your out-of-pocket period is limited, but you should plan for it.
Does WoodmenLife decide whether I can sell?
The society does not decide whether you sell a certificate you own. It does process the ownership change, and because fraternal certificates can carry assignment restrictions, confirm assignment is permitted before you convert.
What if my coverage came through an employer?
Group coverage generally cannot be sold as group coverage. It must be converted or ported into an individual policy first, usually within about 31 days of leaving. Check the master contract holder on your paperwork.
I let the term lapse last month. Any options?
Ask WoodmenLife whether a reinstatement period is open and whether reinstating would restore the conversion right. Those windows are short, so call today rather than next week.
How long does the whole thing take?
The settlement itself usually runs 60 to 120 days, plus the carrier’s conversion processing beforehand. Start well ahead of any deadline, because you cannot compress medical record collection.
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Related Reading
- What Policies Qualify For Life Settlement
- Sell My Woodmenlife Universal Life Policy
- Sell My Woodmenlife Guaranteed Universal Policy
- Education Center
- How It Works Policy Options
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.