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

In this engaging discussion, Tony interviews Harry Joffe, Head of Legal at Discovery Life, to explore the full potential of the Dollar Life Plan—a life insurance product that allows clients to hold cover and pay premiums in US dollars. Originally launched in 2014, the product has evolved significantly to meet the increasingly complex needs of South Africans with international financial interests.

Harry discusses how policyholders can pay via their Single Discretionary Allowance (SDA) or, for those no longer tax resident in South Africa, make offshore payments directly to Discovery. This flexibility opens the door for structures like foreign trusts, companies, and foundations to own the policy, providing significant advantages in estate planning.

Notably, policies are not deemed domestic assets, avoiding local estate duty and easing liquidity for settling offshore taxes like the UK’s inheritance tax or US estate tax. The product includes innovative features such as annual premium options, fixed exchange rates, and a 50% Vitality-linked premium discount.

Harry also introduces the “short form trust”—a cost-effective offshore trust structure designed for targeted legacy needs, such as protecting minor beneficiaries or securing buy-and-sell arrangements in offshore businesses.

This podcast is packed with practical insights for financial advisors and globally minded clients seeking tax efficiency, estate clarity, and long-term financial stability.

Key Points

• 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.