A convertible term life settlement involves exercising the conversion option on a term life insurance policy to convert it to permanent coverage, then selling the new permanent policy through a life settlement for a lump-sum payment.
Convertible Term Life Insurance
Most policyholders see a term life policy as expiring coverage. But buried in the fine print of many policies is a conversion option — a right that, in the right circumstances, can be worth tens of thousands of dollars. We'll show you how.
Check Your Conversion ValueA convertible term life policy gives you the right to convert to permanent insurance — without a medical exam. This single feature fundamentally changes what your policy is worth.
For someone whose health has changed, that conversion right is gold. It lets you lock in a permanent policy at standard rates, regardless of your current health status. Normally, permanent insurance for someone in declining health would be prohibitively expensive — or unavailable entirely.
And that permanent policy? It has real market value. Institutional buyers are willing to pay for it — because they see the death benefit, not just the premium schedule.
It's a two-step process. The details matter, but the logic is simple: we find out what your converted policy would be worth on the secondary market, and if the numbers work, we make it happen.
Policy review
We review your term policy to confirm the conversion privilege, identify eligible permanent policy options, and verify the conversion deadline.
Market valuation
We model the converted policy's projected death benefit and premium structure, then take it to institutional buyers for competitive bids.
Conversion
If the numbers work, we facilitate the conversion to a permanent policy before the deadline. No medical exam. No new underwriting.
You get paid
The converted policy is sold. You receive a lump-sum payment — pocketing the difference between what you put in and what the market will pay.
Every conversion option has an expiration date. It's written into your policy — and it's non-negotiable.
Once the conversion window closes, the right disappears. You can't petition for more time. You can't convert retroactively. The opportunity simply ends.
If you're approaching your conversion deadline, act now. A few weeks can be the difference between a significant payout and nothing at all.
The conversion privilege clause (usually in the policy's "Conversion" or "Change of Plan" section)
The conversion deadline date or the age by which conversion must be elected
Which permanent policy types are available for conversion (whole life, universal life, etc.)
The maximum death benefit available upon conversion
We evaluate convertible term policies at no cost. Send us your policy details and we'll tell you whether your conversion right has real market value — and exactly how much.
Check Your Conversion ValueFree evaluation. Deadline-sensitive — contact us today.
Key Takeaway
Conversion deadlines are real. If your term policy has a conversion option, check the deadline before it expires. Once it's gone, the policy becomes worthless.
It's the process of converting your term life insurance policy to permanent coverage using the built-in conversion option, then selling the permanent policy through a life settlement. This turns an expiring policy into cash.
Conversion deadlines vary by carrier and policy. Some allow conversion only within the first 10–15 years, while others allow it up to age 70 or 75. Check your policy or call your carrier to confirm your deadline.