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).
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.
A: Most types of life insurance policies can qualify; however, the most common are universal life, survivorship, whole life, convertible term, and variable life.
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.
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.
A: There are myriad reasons why a life settlement might be right for you, including:
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 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.
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.
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 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.
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.
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.
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 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.
A: Q Capital has one goal – to take as much risk as possible out of this swiftly growing market – for both sellers and buyers.
A: Yes. The company has $10 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.
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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