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The Life Settlement Agreement is utilized when an existing life insurance policy holder wishes to sell their policy to a third party for a lump sum payment, typically higher than the policy's surrender value but less than the death benefit. This document is essential in South African financial services transactions where policy owners seek to monetize their life insurance assets. The agreement must comply with South African regulatory requirements, including the Long-term Insurance Act and Financial Advisory and Intermediary Services Act. It contains detailed provisions covering the purchase price calculation, transfer procedures, representations and warranties, and ongoing obligations of all parties. The document is particularly relevant in cases where policy owners need immediate access to funds or no longer require the life insurance coverage.

1. Parties: Identification of the Policy Owner (seller), Purchaser, and where applicable, the Insurance Company

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core terms of the transaction including the policy being sold and purchase consideration

5. Purchase Price and Payment Terms: Detailed breakdown of the purchase price, payment method, and timing

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

7. Completion: Process and requirements for completing the transfer of the policy

8. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity, authority, and the policy

9. Obligations of the Parties: Ongoing responsibilities of each party after the settlement

10. Compliance with Laws: Specific provisions ensuring compliance with South African insurance and financial services regulations

11. Confidentiality: Provisions regarding the confidentiality of the transaction and handling of personal information

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

13. Dispute Resolution: Process for resolving disputes under South African law

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