The insured's consideration is the first payment of premium and then after that the continuing payment of premium. The insurer's consideration is the offer to pay out the sum insured if the life insured was to die during the policy period.
Consensus of agreement:
The parties basically must be in agreement about what they are contracting for at the time the agreement comes into force.
Insurable interest:
The life insurance proposer, the person taking the policy out, must have an insurable interest' in the Life Insured.
Capacity to contract:
Both parties must be able to contract. Minors under the age of 18 years are restricted by the Family law Reform Act 1969. Minors under the age of 18 can enter into a contract but subject to certain restrictions the contract can not be enforced against them. That is why most insurers will not issue a policy to someone under the age of 18.
Offer and acceptance:
One party makes an offer' and the other party accepts that offer without qualification. If the acceptance is qualified it simply becomes an alternative offer.