COVER Magazine

Life Cover in Dollars: A Game Changer for Global South Africans

Listen Later

In this insightful podcast, Tony speaks with Harry Joffe, Head of Legal at Discovery Life, about the increasingly popular Dollar Life Plan. Designed to meet the needs of globally mobile South Africans, the product allows policyholders to take out and pay for life cover in US dollars.

Harry Joffe unpacks the practicalities of premium payments, estate planning advantages, and innovative uses of foreign trusts and offshore payments.

This conversation provides valuable insight for financial advisors and clients navigating cross-border financial needs, estate duty implications, and long-term financial security. 

 

Key Points from the discussion:

  • Dollar-denominated life cover addresses offshore estate planning needs. 
    • Clients can pay via SDA or directly from offshore funds. 
      • Premiums are affordable, starting at $50/month. 
        • Policy is issued from Guernsey and pays to offshore bank accounts only, making it exempt from South African estate duty. 
          • Offshore structures like trusts, companies, and foundations can own the policy. 
            • Discovery offers a “short-form trust” for simplified, cost-effective estate planning.
            • Practical for covering offshore estate taxes (e.g., UK or US situs tax).
              • Used increasingly by middle-class families, not just high-net-worth clients.
                • Vitality members can receive a 50% discount on premiums based on the exchange rate. 
                  • ...more
                  View all episodesView all episodes
                  Download on the App Store
                  COVER MagazineBy COVER Publications 100 (Pty) Ltd