Learning Center
A: A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. Depending on the state, a Life Settlement usually refers to a transaction involving an insured who is not terminally or chronically ill, generally over the age of sixty (60). For additional information about life settlements, refer to this blog article.
A: Q Capital purchases life insurance policies with a face value in the range of $50,000 to $50,000,000 that insure the lives of U.S. residents over the age of 60. See if you qualify by using Q Capital’s life settlement calculator. You can also contact one of our experts to discuss whether you qualify or not.
A: The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company, and amount of premium payments to keep the life insurance policy in force. For additional information about life settlements, refer to this blog article.
A: No, there are no restrictions on use of the funds – the money is yours to spend as you like.
A: You should consult with your attorney, financial advisor, accountant, and/or tax advisor before entering into a Life Settlement to understand the tax implications of the transaction. For additional information about the taxation of life settlements, refer to this blog article.
A: There are myriad reasons why a life settlement might be right for you, including:
Refer to this blog article for additional information regarding reasons you may consider selling your life insurance policy.
A: All rights and obligations of the policy are transferred to the new owner. You will no longer be responsible for making premium payments on the policy, the new owner will. The new owner will name a new beneficiary of the policy who will collect the proceeds upon the insured’s passing.
A: Life Settlements are regulated by state insurance departments. Some states have enacted statutes and laws addressing the sale of life insurance policies and others do not regulate the transaction at all. Of those states that regulate the transaction, Q Capital is registered or licensed to transact life settlements in almost all jurisdictions. Please click here for detailed state by state information.
A: To get started we recommend you contact us at 800-554-2145 or provide your information for one of our experts to contact you. Once you determine that a life settlement is appropriate, you can provide policy and medical information to Q Capital. One of our underwriters reviews the case and will make an offer to purchase your policy. If you accept the offer, closing documents and policy ownership transfer forms are completed. Cash payment is transferred from an escrow account to the you. The institutional investor assumes ownership of the policy and makes all future premium payments.
A: Q Capital has streamlined the process to make it very efficient. This enables you to receive a lump sum cash payment in 4 weeks or less from submission; quicker than most competitors. The Life Insurance Settlement Association (LISA) has a detailed infographic on the life settlement process that is a great resource for understanding the process and timing of a life settlement transaction.
A: Currently, Q Capital purchases policies in 46 states and the District of Columbia and is actively pursuing licenses or registrations in all jurisdictions, so if we are not currently licensed or registered in your state, check back regularly for updated information.
A: There are 43 states that require a license to purchase a life insurance policy in a life settlement transaction. We are licensed or registered in the 32 most active states in the life settlement market, and also purchase policies in the 7 states that do not regulate life settlement transactions. Refer to this infographic for the states that we are currently licensed. Check back regularly for updated information.
A: An institutional investor assumes ownership of the policy. Not only does institutional backing provide a secure funding source, it also provides the highest degree of consumer protection with regard to privacy and confidentiality. At no point should a client’s policy, or the personal information associated with it, ever be in the hands of an individual investor.
A: All rights and obligations of the policy are transferred to the new owner. The premium payments are now made by the new institutional owner. You may be required to periodically provide an updated medical records release form.
A: There are no out of pocket fees paid by the seller. The purchaser of the policy pays all of the transaction fees.
A: Yes. All medical, financial and other personal information obtained during the course of the transaction is treated with the utmost confidentiality and will not be disclosed to any unauthorized party. The Company requires that prior to releasing any personally identifiable financial or medical information to any party outside the company, confidentiality agreements are signed by all parties. Moreover, Q Capital will also determine if the information is subject to the confidentiality agreements of the Health Insurance Portability and Availability Act, the Gramm-Leach-Bliley Act, or state confidentiality laws. All records are stored in a secure location in accordance with state laws. Further information regarding Q Capital’s compliance, please refer to our corporate policies and procedures here.
A: Yes. We are funded by several, recognized national, international, and foreign financial institutions. Q Capital is backed by large institutional investors who understand this unique asset and invest in it for the long term. We do not do business with individual investors.
A: Q Capital Strategies has developed a comprehensive Anti-Fraud Program which is not only compliant with state insurance anti-fraud regulations, but also is more rigorous than any current legislation in the industry. Q Capital is the most compliant and highly rated provider in the industry. For further information regarding Q Capital’s corporate policies and procedures, please click here.
A: Q Capital has maintained a clean regulatory record. We have one of the best reputations in the industry. We belong to LISA, the trade association for life settlements, which holds us in good standing.
A: Yes. Q Capital has both legal and compliance departments headed by our General Counsel. The Company’s President and CEO is the immediate past Chair of the Board of Directors of the Life Insurance Settlement Association (LISA), the life settlement industry’s trade association. Q Capital takes compliance very seriously.
A: Q Capital has one goal – to take as much risk as possible out of this swiftly growing market – for both sellers and buyers. For further information regarding Q Capital’s corporate policies and procedures, click here.
A: Yes. The company has $5 million worth of coverage, amongst the highest level of any company in the industry.
A: The company has formal anti-fraud plans filed in states where it is regulated and adheres to these practices in all jurisdictions, whether required by law or not. Q Capital performs routine due diligence on all cases and has the highest standards in the industry for protecting consumer’s privacy. For further information regarding Q Capital’s corporate policies and procedures, click here.
A: Q Capital offers a recission period where required by law in accordance with such laws.
A: Yes. Once the purchase agreement is completed, the settlement amount is deposited in an escrow account until closing. Once papers are finalized, the escrow agent pays the seller.
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