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Many investors have externalized their rands for global investment exposure – is it time to consider externalizing your risk?
The demand for global investment solutions is a growing trend in SA. With family dynamics changing due to emigration and work opportunities outside of SA there has been an increase in the need for offshore life assurance to cater for a wider range of financial needs and circumstances.
Many of us have children or other family members who have relocated offshore for various reasons, and they might be named the beneficiaries of your life policies. Multiple scenarios can play out for beneficiaries who are no longer based in SA. For instance, if the beneficiary of your SA life cover policy does not have a SA bank account, the benefit cannot be paid to them, and it could lead to the benefit having to be paid to your estate late, which could have a further cost effect such as executor’s fees, which would have been avoided if paid directly to the beneficiary. Forming part of estate assets in this manner means the beneficiary would only receive it once the executor has permission from the Master to distribute, this could add several months, or even longer, to the timeline of receiving the benefit.
Investors with offshore assets might have offshore liabilities such as inheritance taxes on immovable property, educational costs or a bond that needs to be covered on their passing.
Should you have offshore liabilities, or your children and/or other beneficiaries live overseas, a life cover product that pays out in USD directly to an offshore bank account would be advantageous.
There is a SA Insurer that provides such an offshore dollar policy, which offers risk protection in dollars which is insured and paid internationally.
The premium, ranging from the minimum of $50 per month and maximum of $4,000 per month, can be either paid annually directly from an offshore dollar denominated account or monthly from a SA bank account at the prevailing exchange rate.
Premiums taken from a SA bank account will form part of your R 1mil annual offshore allowance, so take this into account if you have, or are planning to take money offshore for other reasons such as investments or planning to travel overseas.
Depending on your age and other rating factors the premium is calculated for a certain amount of USD life cover. You can also select to include additional benefits such as Disability and Severe Illness cover.
Requirements:
- Completed and signed original Application form and FICA documents.
- Full medical and health underwriting is applicable. Blood tests and medical tests including relevant reports will be required.
- Because of SA’s grey listing status, an enhanced due diligence process will be applicable, such as all original and certified application forms and other documents.
In view of estate duty for a SA tax resident, this type of policy is classified as a non-domestic policy, as long as the payouts occur out of SA – exempting it from estate duty in SA. Some jurisdictions might tax the proceeds in the hands of the beneficiary – this can be avoided by including an offshore trust in your overall estate plan. A bottom drawer offshore trust, as one managed by Brent Consulta (part of the Brenthurst Wealth group of companies), based in Mauritius, would remove the concern of where the policy beneficiary is based, and avoid estate duties completely.
The product can provide valuable cover for liabilities outside of SA in USD currency.
Contact Leslie Greyling, financial advisor at Brenthurst Wealth Fourways for more information or a quote, and Rozanne Heystek-Potgieter, CFP®, financial advisor at Brenthurst Wealth Val de Vie for more detailed estate planning queries.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
Angelique Anderson joins our Pretoria office as an Administrative Assistant, bringing over 24 years of experience across the financial, legal, and executive support sectors, both locally and internationally. Her meticulous attention to detail, discretion, and extensive knowledge of asset finance and compliance make her an invaluable addition to our team.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
Michelle joined the Brenthurst Wealth Team in 2025 as a paraplanner assisting Iniel Van Zyl and Leslie Greyling in our Fourways office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
