Term Conversion Nets $215,000 Settlement
A 69-year-old Atlanta retiree was about to let his term policy expire worthless. A conversion and life settlement turned that expiring asset into $215,000 in cash.
Hypothetical illustration. Names, figures, and details are illustrative. Individual results vary.
The Situation
William (name changed) was a 69-year-old retired contractor in Atlanta, Georgia. His $1M 20-year term policy was nearing expiration. He had been paying premiums for two decades and was about to walk away with nothing.
His insurance agent mentioned in passing that some term policies include a conversion option — the right to convert to permanent coverage without a new medical exam. William's policy included this feature. His agent contacted Accelerated Life Solutions to ask whether a converted policy could immediately be sold as a life settlement.
The answer was yes. The American Council of Life Insurers recognizes term conversion as a valid precursor to a life settlement for qualifying policyholders. We coordinated the conversion and settlement simultaneously, ensuring the policy never lapsed.
"I'd been paying into this policy for 20 years and was about to get nothing. Then I received $215,000. It didn't feel real."
— William, Atlanta GA, Age 69
How It Happened
Conversion Option Identified
William's insurance agent identified the conversion rider in his term policy as expiration approached. Accelerated Life Solutions confirmed the converted policy would qualify for a life settlement.
Simultaneous Conversion & Submission
We worked in parallel — coordinating the conversion paperwork with the insurer while preparing the settlement submission package for secondary market buyers.
Competitive Bids Received
The newly converted $1M universal life policy was submitted to buyers. Strong bids were received due to the policy's large face value and William's health profile.
Settlement Funded
William received $215,000 — converting a policy that would have expired worthless into a significant retirement asset.
Key Outcomes
Could You Qualify?
Many term life insurance policies include a conversion option that allows the policyholder to convert to permanent coverage without a new medical exam. If you hold a term policy that is approaching expiration, converting it first — and then selling it as a life settlement — may turn a worthless expiring policy into significant cash.
- You are 65 or older
- Premiums have become difficult to afford
- Your coverage needs have changed
- The policy is at risk of lapsing
- You need funds for healthcare or retirement income
According to the American Council of Life Insurers (ACLI), term conversion options are a valuable but often overlooked policy feature that can enable a life settlement for policyholders who would otherwise receive nothing.
Go deeper: selling a term life insurance policy.
Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions. Read the life insurance policy review guide.
Learn more about life settlement eligibility requirements or use our free policy value calculator to get an illustrative estimate.
Case study FAQ
Is this life settlement case study a real transaction?
This case study is a hypothetical illustration based on the types of situations Accelerated Life Solutions reviews. Names and figures are illustrative, and individual results vary.
Could a similar life insurance policy qualify for a life settlement?
Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions. A free, confidential evaluation from Accelerated Life Solutions shows whether a specific policy may have secondary-market value.
How long does a life settlement like this take?
Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received. Overall timeline varies with underwriting complexity, documentation availability, buyer requirements, and carrier processing. Estimated closing and funding timelines are communicated as the transaction progresses. No fixed completion date is guaranteed.
How is the life settlement broker paid?
Broker compensation is determined case by case, considering the circumstances and economics of each transaction, and is always disclosed before the transaction is finalized. Compensation is structured to support successful transactions while staying transparent with the appropriate parties. Applicable compensation and transaction costs are disclosed in accordance with governing state laws and transaction documentation.
Hypothetical illustration. Names, figures, and details are illustrative. Individual results vary. Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions.