Yes. A term life policy issued by Zurich American Life Insurance Company can be sold in a life settlement, because the policy belongs to you and the buyer is purchasing the contract itself, not asking the carrier for a favor. Zurich does not have to approve the sale and cannot block it. The U.S. Supreme Court treated a life insurance policy as transferable personal property in Grigsby v. Russell back in 1911, and that principle still governs the market in 2026.
Term is the one policy type with a real catch, though. Pure term has no cash value and it eventually expires, so most buyers will only pay for it if it can be converted into permanent coverage that lasts. That means your conversion privilege, and the deadline attached to it, is the single most important thing on your contract.
This page walks through who services Zurich American Life policies today, how the conversion window works, what a term settlement is worth, and when it is smarter to simply let the policy go. Pine Lake Life Solutions is not affiliated with Zurich American Life Insurance Company or Zurich Insurance Group. We review policies and explain options; we do not give legal or tax advice.
In This Article
- Who Actually Services a Zurich American Life Policy Today
- Group Term vs. Individual Term: Check Which One You Have
- The Conversion Privilege Is the Whole Ballgame
- What Buyers Look For in a Convertible Term Case
- Documents to Gather Before You Ask for a Review
- How the Process and Timing Usually Work
- When Selling Is the Wrong Answer
- Taxes, Medicaid, and Getting Real Advice
- Frequently Asked Questions
Who Actually Services a Zurich American Life Policy Today
Zurich American Life Insurance Company is the U.S. life arm of Zurich Insurance Group, the Swiss insurer, with its American operations run out of the Chicago suburb of Schaumburg, Illinois. Longtime policyholders sometimes notice that the company was known by a different name earlier in its history and was renamed under the Zurich banner around 2010; verify that history against your own contract, because a renamed company can leave you holding paperwork that no longer matches the logo on your statements.
The more practical point for 2026: Zurich’s U.S. life business today leans heavily toward employer group benefits rather than individually sold retail life, and several older individual blocks have been placed in runoff or reinsured. Verify current status directly with the carrier. Whoever administers the block is the office that will process a change of ownership, so before anything else, call the service number printed on your most recent premium notice and ask two questions: who administers this policy, and where do owner-change forms get sent?
Group Term vs. Individual Term: Check Which One You Have
Because Zurich’s U.S. life presence is weighted toward workplace coverage, a lot of people who think they own a Zurich term policy actually hold a group certificate through an employer. That distinction changes everything. A group certificate is generally not a policy you own outright, so it cannot be sold as-is.
What a group certificate usually does carry is a conversion right, and it is short. Under most group life contracts the window to convert to an individual permanent policy is roughly 31 days from the day your coverage ends because you retired, left, or dropped below hours. Miss it and the coverage is simply gone. If you are retiring in 2026 and hold a Zurich group certificate with a meaningful face amount, request the conversion paperwork before your last day, not after.
The Conversion Privilege Is the Whole Ballgame
An individual term policy usually includes a conversion privilege that lets you exchange it for a permanent policy from the same carrier with no new medical exam. Conversion deadlines are written two ways: an age cap, commonly somewhere in the 65 to 70 range, or a duration cap, such as the first 10 years of a 20-year level term. Whichever comes first ends the right. Read the conversion provision on your own contract rather than assuming.
Health is exactly why this matters. If your health has declined, you probably cannot buy new permanent coverage at any sensible price, but conversion ignores your current health because you were underwritten years ago. That is what makes an expiring conversion window time-critical: the day it closes, a policy that could have been worth real money becomes a policy that will lapse for nothing.
What Buyers Look For in a Convertible Term Case
Institutional buyers in the secondary market generally focus on insureds in their senior years, typically 65 and older, with death benefits of $100,000 or more, and on health changes since the policy was issued. With term specifically, they add a fourth test: how much conversion room is left, and what permanent product the carrier will convert it into.
A term policy with five years of conversion runway and a strong permanent product on the other side is far more attractive than one with 60 days left and only an expensive option available. Buyers also want the converted premium to be predictable, because they will be paying it for years. If the conversion product is a guaranteed universal life contract with a level premium, that is usually a plus.
| Situation with a term policy | Can it be sold? | What to do first |
|---|---|---|
| Individual term, conversion window still open | Usually yes, after conversion | Request a conversion quote and remaining-window letter |
| Individual term, conversion window expired | Rarely | Ask the carrier in writing; confirm expiration date |
| Employer group certificate, still working | No, not while it is group coverage | Ask HR for the conversion and portability rules |
| Employer group certificate, recently left the job | Possibly, if converted in time | Act inside the roughly 31-day conversion window |
| Convertible term under $100,000 face | Often too small for offers | Compare keeping the coverage vs. letting it lapse |
| Term with an accelerated death benefit rider and terminal illness | Yes, but compare first | Price the rider payout before pursuing a sale |
Documents to Gather Before You Ask for a Review
Start with the policy cover page or annual statement, which shows the owner, insured, face amount, and policy number. Add the conversion provision pages from the contract, or ask the service center for a written statement of your remaining conversion right and the products available to you. For a group certificate, ask HR for the certificate booklet and the portability or conversion notice.
Next, request a conversion quote showing what the permanent premium would be at your current age. That number, more than anything else, drives what a buyer can pay. Finally, be ready to sign a HIPAA authorization so medical records can be reviewed, since life expectancy analysis is what turns a policy into an offer.
How the Process and Timing Usually Work
A typical case runs about 60 to 120 days from first review to funds in hand. Term cases can run toward the long end because conversion has to be completed with the carrier before or alongside the sale, and carrier processing adds weeks. Order of operations is usually: policy review, medical records and life expectancy review, offers, conversion completed, then closing.
At closing, ownership and beneficiary designation transfer to the buyer, funds are placed in escrow, and the buyer takes over all future premiums. Most states also give the seller a rescission period after funds are received, commonly around 15 days, during which the sale can be unwound by returning the money. Confirm the rule that applies to you.
When Selling Is the Wrong Answer
Keep the policy if the death benefit is still doing a job. A surviving spouse who would face a real income gap, a special-needs child, or a business buy-sell obligation are all reasons to keep paying, if the premium is affordable. A settlement ends the coverage for your family permanently.
Also stop and think if the insured is terminally or chronically ill. Many contracts include an accelerated death benefit rider that pays part of the face amount directly, with no sale, no buyer, and no months of waiting. It is often faster and simpler. And if the face amount is small, say under $100,000, the case may not attract offers at all; letting a term policy expire may cost you nothing but the coverage.
Taxes, Medicaid, and Getting Real Advice
At a high level, proceeds from a life settlement are generally treated in layers: amounts up to your cost basis, then amounts above basis, with different treatment for each layer. Federal rules changed under the 2017 tax law in ways that affect how basis is calculated. This is a description of how the rules are structured, not tax advice; bring the numbers to a CPA before you sign anything.
If Medicaid is part of the picture, remember that converting an insurance policy into cash converts an often-exempt asset into a countable one, and gifting the proceeds can trip the look-back rules. An elder law attorney should map that out first. If you want a plain-English read on whether a Zurich American Life term policy is even a candidate, send the policy cover page for a free policy review, or call (305) 209-7183.
Frequently Asked Questions
Does Zurich American Life have to approve the sale of my term policy?
No. The carrier’s role is administrative. Once a sale closes, the buyer files a change-of-ownership and change-of-beneficiary form, and the carrier records it. The carrier does not decide whether you may sell.
Can I sell term life insurance that I cannot convert?
Almost never. Non-convertible term has no cash value and expires at the end of the level period, so there is nothing durable for a buyer to own. Check your contract carefully before assuming conversion is unavailable, because the right is sometimes limited rather than absent.
How long does the conversion window last?
It depends on the contract. Individual term conversion rights commonly end at a stated age, often in the 65 to 70 range, or after a set number of policy years, whichever arrives first. Group certificates usually allow roughly 31 days after coverage ends.
What is my Zurich term policy likely worth?
Life settlements broadly range from about 10% to 35% of the death benefit, with most cases well below the top of that range. Term cases are pulled down by the cost of the converted permanent premium the buyer must pay. Only a real review with medical records produces a number.
Who pays the premiums after the sale?
The buyer does. Once ownership transfers, all future premium obligations belong to the buyer. You have no further payments and no further coverage.
How long does the whole process take?
Plan on roughly 60 to 120 days. Term cases often land at the longer end because carrier conversion processing happens in the middle of the transaction.
Is Pine Lake connected to Zurich?
No. Pine Lake Life Solutions has no affiliation with Zurich American Life Insurance Company or Zurich Insurance Group. We review policies and explain the options available in the secondary market.
Can I change my mind after I sell?
Most states provide a rescission period after you receive funds, commonly around 15 days, letting you unwind the sale by returning the money. The exact length varies, so confirm what applies in your situation before closing.
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Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- How It Works Policy Options
- What Is A Rescission Period
- Education Center
- Sell My Zurich American Guaranteed 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.