Life Settlement Agreement Template for Australia

The Life Settlement Agreement is a critical document used in the Australian financial services sector when a life insurance policy owner wishes to sell their policy to a third party for immediate liquidity. This complex transaction requires careful documentation to ensure compliance with Australian regulatory requirements, including the Insurance Contracts Act 1984, Life Insurance Act 1995, and relevant ASIC regulations. The agreement comprehensively details the purchase price calculation, transfer mechanics, ongoing obligations, and risk allocations between parties. It includes essential provisions for policy maintenance, premium payments, and beneficiary rights, while incorporating necessary consumer protections and disclosure requirements specific to the Australian jurisdiction. This document type has become increasingly important as the secondary market for life insurance policies continues to develop in Australia, offering policy owners an alternative to surrendering or lapsing their policies.

1. Parties: Identification of all parties including the policy owner (seller), purchaser, and any relevant insurers

2. Background: Context of the agreement, including details of the existing life insurance policy and purpose of the settlement

3. Definitions: Defined terms used throughout the agreement, including technical insurance and financial terms

4. Purchase and Sale: Core transaction terms including purchase price, payment method, and timing

5. Transfer of Rights: Details of policy rights being transferred and mechanics of transfer

6. Representations and Warranties: Statements of fact and assurances from both parties regarding the policy, authority to sell, and other key matters

7. Conditions Precedent: Requirements that must be met before the agreement becomes effective

8. Settlement Process: Step-by-step process for completing the transfer and payment

9. Post-Settlement Obligations: Ongoing responsibilities of parties after settlement, including premium payments and policy maintenance

10. Confidentiality: Provisions protecting sensitive personal and financial information

11. Regulatory Compliance: Compliance with relevant laws and regulations including AML/CTF requirements

12. Termination: Circumstances under which the agreement can be terminated and consequences

13. Dispute Resolution: Process for handling disputes between parties

14. General Provisions: Standard legal provisions including governing law, notices, and amendments