Which of the following does NOT involve a life settlement transaction?

The choice that does not involve a life settlement transaction is converting term life insurance to whole life insurance. A life settlement transaction typically refers to the process where an individual sells their existing life insurance policy to a third party for a cash payment that is higher than the policy's cash surrender value but lower than the death benefit.

In contrast, converting term life insurance to whole life insurance is a policy modification process rather than a transaction involving the sale or transfer of ownership. This conversion allows the policyholder to change their coverage without undergoing a new medical evaluation, but it doesn’t involve a third party or the selling of the policy itself.

Selling a life insurance policy for cash and transferring ownership of a policy to a third party are both fundamental components of a life settlement transaction. Additionally, negotiating a policy loan with a lender also involves accessing the policy's cash value but does not reflect a life settlement scenario. Thus, the conversion of a term policy to whole life stands out as the choice that does not involve any of the transactional elements characteristic of life settlement arrangements.