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Life Policies
Tuesday, August 1, 2000
Global goal

The Liberty Life Group has launched a life cover product that is payable in US dollars, anywhere in the world, and is legally available to South African residents.

The premiums are also payable in dollars. The original intention was to charge on a monthly basis against a domestic Visa or MasterCard, but the Reserve Bank had indicated that ‘it would not be happy with this arrangement,’ and now an alternative payment method has been put in place and this will fully comply with the requirements for the R750 000 individual offshore allowance.
The cover is provided under a Liberty ‘global term contract’ which is fully reassured offshore, so there is no ‘capital flight’ on the death of the life assured.
The minimum monthly premium is $100 and this will provide a healthy non-smoking 35 year-old man with life cover, for example, of $ 436 000; $1 million of cover will cost $250 a month.
In addition, Liberty says it has negotiated preferential rates for global term clients to have offshore trusts set up or administered by Standard Bank Offshore.
Comments Liberty’s Executive Director, Financial Services, Mike Jackson, “Liberty global term meets a huge need for international life assurance, without impacting on domestic foreign exchange reserves.”
Many South Africans today want their lives assured in a foreign currency. For example:
• to cover offshore liabilities and risks;
• for the family members now living abroad;
• to ensure planned overseas education costs:
• for the foreign counter-party who wants dollar security in order to do a business deal; or,
• as security against an offshore loan or mortgage.

“The product is aimed at all South Africans who need some or all of their life cover in a major currency such as the US Dollar,” he adds.
“Shrewd investors worldwide have a diversified portfolio. They do not restrict themselves to single currencies or economies. Why should South Africans’ financial strategy in terms of their life cover be any different?”
For further information on this product, please contact Francis Raffner on (011) 408 2087, or email to francis.raffner@liberty.co.za

Copyright © Insurance Times and Investments® Vol:13.7 1st August, 2000
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