Term Conversion Nets $215,000 Settlement
A 69-year-old Atlanta retiree was about to let his term policy expire worthless. A same-day conversion and life settlement turned that expiring asset into $215,000 in cash.
The Situation
William (name changed) was a 69-year-old retired contractor in Atlanta, Georgia. His $1M 20-year term policy was 89 days from 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 LS 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. Ninety days later I had $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 with 89 days remaining. Accelerated LS 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 within two weeks due to the policy's large face value and William's health profile.
Settlement Funded
William received $215,000 within 74 days of the initial consultation — 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.
Learn more about life settlement eligibility requirements or use our free policy value calculator to get an instant estimate.