Q: What is a Life Settlement?
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).
Q: Do I qualify for a life settlement?
A: Q Capital purchases life insurance policies with a face value in the range of $100,000 to $10,000,000 that insure the lives of U.S. residents over the age of 60.
Q: What types of policies do you buy?
A: Most types of life insurance policies can qualify; however, the most common are universal life, survivorship, whole life, convertible term, and variable life.
Q: How much money will I get if I sell my life insurance policy?
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.
Q: After I sell my policy, are there any restrictions on how I can use the money?
A: No, there are no restrictions on use of the funds – the money is yours to spend as you like.
Q: Are the proceeds of a Life Settlement taxable?
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.
Q: What are some of the reasons why I might consider the sale of my policy?
A: There are myriad reasons why a life settlement might be right for you, including:
- The policy is no longer needed or wanted
- To pay for healthcare costs
- Premium payments have become unaffordable
- Considering lapse or surrender of the policy
- Change in estate planning needs
- To purchase a different financial product/investment
Q: What happens to the policy after I sell it?
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.
Q: Does my state regulate Life Settlements?
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.
Q: What is the process for selling you my insurance policy?
A: To get started we recommend a policyholder contact their insurance agent or financial representative and call Q Capital at 800-554-2145. Once a client and his or her advisor(s) determine that a life settlement is appropriate, the agent/broker provides policy and medical information to Q Capital. One of our underwriters reviews the case and offers your representative a purchase price. After the acceptance of the offer, closing documents and transferral of ownership is completed. Cash payment is transfer from an escrow account to the client and broker. The institutional investor assumes ownership of the policy and makes all future premium payments. To start the process, please download our application.
Q: How long does it take to close the sale of my insurance policy and receive my payout?
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.
Q: Are you properly licensed in multiple states?
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. Click here to find out if we purchase in your state.
Q: Do you need to be licensed to buy my policy?
A: There are 29 states that require a license. We are licensed or registered in the 27 most active states in the life settlement market; check back regularly for updated information.
Q: Who is the owner of my policy after I sell it?
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.
Q: Do I have any ongoing obligations after I sell my policy?
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.
Q: Are there costs involved?
A: There are no out of pocket fees paid by the seller. The purchaser of the policy pays all of the transaction fees.
Q: Is my personal information kept confidential?
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.
Q: Are you institutionally funded?
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.
Q: Does the company employ and engage in sound business practices?
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.
Q: Has (or is) the company been involved in any state insurance department complaints or legal action?
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.
Q: Does Q Capital have an in-house legal or compliance department?
A: Yes. Q Capital has both legal and compliance departments headed by our General Counsel. The Company was a member of the Board of Directors of the Life Insurance Settlement Association (LISA) for seven years, including a term as Vice President of the Board. Q Capital takes compliance very seriously.
Q: Does Q Capital strive to protect all parties involved in the transaction?
A: Q Capital has one goal – to take as much risk as possible out of this swiftly growing market – for both sellers and buyers.
Q: Does Q Capital carry Errors & Omissions (E&O) insurance?
A: Yes. The company has $10 million worth of coverage, amongst the highest level of any company in the industry.
Q: Are due diligence, anti-fraud, and consumer privacy measures utilized?
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.
Q: Does Q Capital offer a rescission period?
A: Q Capital offers a recission period where required by law in accordance with such laws.
Q: Does Q Capital offer an escrow service, even in states where not required?
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.