A life settlement involves selling a life policy to a third party under the applicable jurisdiction’s rules.
The distinction that matters
Overseas settlement-market descriptions do not establish an available or suitable Australian exit option, and a sale can affect beneficiaries and privacy.
What to check
- Check legal availability and ownership rights.
- Compare surrender and other alternatives.
- Review fees, tax and medical-data disclosures.
Example to discuss
A policyholder considering an overseas offer checks who will own the policy and receive the death benefit before signing.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an explanation of terminology found in overseas life-policy material. It does not establish that a similarly named product is currently offered in Australia, or that US guarantees, tax treatment or legal rules apply here.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.