Can You Sell a Term Life Insurance Policy? (Yes—Here’s How)

Most people assume a term life policy is worth nothing once the term ends. That’s not always the case. Many term policies have features that can make them eligible for a cash payout through a life settlement—and when they do, our team handles the entire process for you. Even some term policies without those features may still qualify depending on how their premiums change over time. This guide explains, in plain English, how we evaluate term policies and what to expect.

Why Term Policies Aren’t Always “Worth Zero”

Term insurance is designed to end. That leads many people to assume there’s no value near the finish line. In reality, some term contracts include features that let us position your coverage for a cash offer. You don’t need to worry about the mechanics—we handle that in-house. Your job is simply to find out whether your policy could qualify.

New to life settlements? Start with What Are Life Settlements?

How We Evaluate Your Term Policy (Done In-House)

Our team does a quick review that focuses on three things:

• Eligibility features: Some term policies include options that can make them eligible for a cash offer. We confirm and manage those steps internally when it helps your case.
• Premium outlook: If your policy renews each year, we look at how the costs change. If the increases are manageable, your policy may still be attractive to buyers.
• The big picture: Age, coverage amount (often $100,000+), and health changes since you bought the policy can all influence value.

When there’s potential, we shop your case to qualified buyers and present you with real offers—so you can compare against letting it lapse or doing nothing. See our simple process on How It Works and general criteria on Who Qualifies.

Two Quick Stories

Linda, 68 — “I thought my term policy was dead money.”
Linda had a $200,000 term policy with only months left. She assumed it was worthless. After our review, we confirmed her contract had an option we could use internally to position it for buyer interest. We handled everything behind the scenes and presented a lump-sum offer—far better than letting the policy end at $0.

Andre, 72 — “My policy renewed yearly. I figured it was too late.”
Andre’s coverage renewed annually and costs were starting to rise. We reviewed how those costs changed year to year and determined they were still within a range buyers would consider. He received a cash offer and used it to reduce expenses in retirement.

Every case is different. These stories show why a quick review is worth it. Try our Life Settlement Calculator for a ballpark estimate.

What If the Policy Isn’t “Convertible”?

Some term policies don’t include the features we’re looking for—and still may qualify. If the policy renews yearly and the costs don’t jump too steeply, there can still be a path to a cash offer. We’ll review how the costs change over time and whether the overall picture makes sense for buyers.

Bottom line: don’t rule yourself out. Let our team look at the contract details and cost pattern first.

What Drives Your Potential Payout

Buyers weigh the future costs of keeping the policy against the benefit it could pay down the road. The main drivers are:

• Age & health history: Later-life coverage and meaningful health changes since you bought the policy can improve interest.
• Coverage amount: Policies at $100,000+ are most commonly considered.
• Cost pattern: If your costs renew each year, the pace of those increases matters.
• Contract features: Certain options in the policy can help us position it for offers—handled in-house by our team.
• Market demand: We shop your case to create competition and real price discovery.

For a side-by-side of options, read Life Settlement vs. Surrender — Which Pays More?

What Happens Next (Simple Steps)

1. Quick estimate: Use the calculator to get a feel for the range.
2. Fast review: We pull policy details, look for helpful features, and assess your cost pattern—all handled by us.
3. Real offers: If there’s potential, we invite buyers to bid and present the best options to you—no pressure, no obligation.
4. Secure closing: If you accept an offer, funds are disbursed safely and future costs are no longer your responsibility.

Short FAQ

Can a term policy be sold?
Sometimes—yes. It depends on the contract features and how the costs change over time. Our team checks this for you.

Do I have to manage any technical steps?
No. If your contract includes options that help your case, we handle those internally as part of the process.

What if my policy renews yearly and costs rise?
We look at the pattern. If increases are manageable, there may still be buyer interest.

Are proceeds taxable?
Portions can be taxable depending on your basis and gain. Please consult a qualified tax professional and see our FAQ.