Prospective life settlement policy owners will often consider a life settlement when their term policy approaches the conversion deadline. A conversion transitions a policy from a term life product to a permanent product, which increases the premium. Often the increase of premium makes converting a term policy cost prohibitive.  Being aware of policy conversion deadlines creates an opportunity to discuss conversion options and potentially life settlement.

Partial term conversions are a great life settlement opportunity. In cases where a policy owner only converts a portion of their existing term policy, the remaining term coverage can be sold. This not only provides value to the policy owner, but typically means the full face amount will be converted. 

In some cases policy owners may want to hold onto the term policy past the conversion deadline and plan to let the policy lapse if they live past the end of the term. While that is a strategy, considering if they need the same amount of insurance prior to the conversion deadline is important. If they no longer need the full face amount, they could keep the amount they need of term insurance until the end of the term and try to sell the remaining portion before the end of the conversion deadline. 

In most cases, if a term policy passes the conversion deadline, it is extremely difficult to get an offer. Therefore, being vigilant when it comes to conversion deadlines and conversion options is extremely important. With the growing number of baby boomers reaching the end of their term policies and approaching conversion deadlines, this is an enormous prospecting opportunity.