What are the benefits of having offshore life insurance?

Discovery’s Dollar Life plan can offer you more financial security than a local policy

23 June 2021 - 13:00
Discovery's Dollar Life plan has a Life fund set up for the life assured.
Discovery's Dollar Life plan has a Life fund set up for the life assured.
Image: Supplied/Discovery Life

Is it possible to get comprehensive life cover with a full range of offshore risk protection solutions and payouts in the world’s most commonly used global currency, the US dollar? With Discovery Life International’s new offering, you absolutely can.

There are plenty of options when considering local life insurance plans, which provide comprehensive cover, financial security and peace of mind. Clients can also link their policies to foreign currency exchange rates. Discovery’s offshore life insurance plan, the Dollar Life plan, can offer you just as much, if not more, financial security than a local policy.

Benefits of Discovery Life International’s offshore life insurance offering

  • Global risk protection that offers comprehensive life cover that pays out in US dollars.
  • Exchange rate certainty through the ability to fix the rand-dollar exchange rate for a period of time.
  • Additional benefits that offer more than just life cover, including severe illness cover and global disability protection.

Discovery’s Dollar Life plan has a Life fund which is set up for the life assured. Upon their passing, a lump sum is paid out from this fund to the nominated beneficiaries. The Life fund allows clients to protect offshore liabilities, as well as guards against any applicable currency fluctuations. There are even possible tax incentives,” says Discovery Life senior risk specialist Daniel Stoch.

Clients can also benefit from the Vitality Exchange Rate Protector, which provides exchange rate certainty for up to nine years. “This optional benefit on the Dollar Life plan provides an automatic, upfront 15% discount on the exchange rate for the first three years. Clients are then provided with two additional three-year periods of locked-in rates. During this time, they can increase their exchange rate discount by up to 21%.”

Clients can access the market-leading Severe Illness benefit, Discovery Life’s Dollar Capital Disability benefit and optional cover, including the flagship LifeTime Capital Disability benefit and the MedTech Booster feature, as well as the Global Treatment benefit and the Cancer Exome Sequencing benefit. “This opens them up to extensive oversees treatment opportunities that may not be available locally,” says Stoch.

Tailorable benefits, enhancements and rewards on the Dollar Life plan

These include:

  • Global education protection: This benefit helps a life assured cover the costs of education from crèche to tertiary education should a death, severe illness or disability negatively affect a client’s life and earning capability. Clients can also receive up to 100% of their children’s tertiary fees if they don’t claim on their policy, for managing their health and wellness.

  • Retirement optimiser: Clients can use the Discovery Retirement Optimiser to supplement and diversify their retirement goals each month with an offshore endowment policy denominated in US dollars.

  • Up to 50% PayBack of qualifying premiums: Payments are made in US dollars and received every five years through the PayBack benefit. 

  • Vitality membership can now be added to plans: This gives clients access to enhanced shared-value benefits such as the Vitality Rating Longevity Discount which provides long-term premium sustainability.

  • Buy-up Cash Conversion benefit: Clients can increase their cover (for an additional premium) through the available Integrators and receive either 25% or 50% of those funds as a tax-free lump sum that is paid out in US dollars at age 65.

“Discovery Life International is offering a limited offer for new business clients — the R10.90/$ New Dollar Life Plan offer,” says Stoch. “With economies experiencing much volatility of late, this special offer provides enhanced certainty, value and protection with a set exchange rate of R10.90/$ for the first three years of a policy that is taken out before August 31 2021.”

“A good offshore life insurance plan gives people more choice and offers an opportunity to diversify their financial portfolio in global currencies such as the US dollar. It’s a way for people to maximise the value of their hard-earned rand — and Discovery’s Dollar Life Plan can offer South Africans world-class risk protection and benefits for this.”

Speak to your financial adviser about the New Dollar Life Plan offer.

The Discovery Dollar Life Plan is issued by Discovery Life International, the Guernsey branch of Discovery Life Limited (SA), licensed by the Guernsey Financial Services Commission under the Insurance Business (Bailiwick of Guernsey) Law 2002 to carry on long-term insurance business. The Discovery Dollar Life Plan is also subject to the SA Long-term Insurance Act of 1998. Discovery Life. Registration number 1966/003901/06, is a licensed life insurer, an authorised financial services and registered credit provider, NCR Reg No. NCRCP3555.

This article was paid for by Discovery Life.