While most of us are aware of the importance of diversifying our investments globally, we don’t often think about diversifying our risk cover.

Taking out life cover in US dollars is one way to leave a legacy in a hard currency that should maintain its value.

In the latest episode of “Life Behind the Numbers,” a Discovery Life podcast, we unpack the benefits of diversifying life insurance with offshore options, and the importance of protecting your wealth in hard currency.

The Dollar Life Plan has been available for over a decade and is growing in popularity among South Africans who want to hedge against currency fluctuations and the depreciation of the rand.

By opting for life cover that pays out in US dollars, policyholders can retain the buying power of their wealth, ensuring greater financial stability for themselves and their families.

One of the features of the Dollar Life Plan is its integration with South African financial systems. Despite being an offshore policy, premiums are debited in rand, converted to dollars, and taken offshore, while adhering to Reserve Bank regulations.

This hassle-free process makes the product accessible to a wide range of South Africans, regardless of their financial background.

The episode delves into the various use cases for the Dollar Life Plan, from covering severe illnesses and disabilities to facilitating your children’s education abroad.

With globalisation on the rise and the world becoming increasingly mobile, having a portion of life insurance cover in dollars is a sensible strategic move for long-term financial planning.

The Dollar Life Plan includes an exchange rate protector feature, providing short-term certainty by locking in the rand-dollar exchange rate for three-year periods.

The Dollar Life Plan is not just for high-net-worth individuals or for those who have foreign earnings. With a minimum policy premium of just $50 (R900) a month, many people have access to the product and can use it as a further tool in diversifying their financial portfolio.

This podcast was sponsored by Discovery Life.