South Africans may find foreign life policies useful when planning their estate. Last month's article focused on offshore endowment policies for investments, but foreign life policies are also useful for those who want some of their life cover in hard currency or paid out in other countries where they have family members or liabilities. You can now use your investment allowances [either the R1m single discretionary allowance or the R10m allowance which requires a tax clearance certificate (TCC allowance), or both] to buy offshore life cover, as some local insurers offer such a product. You may be wondering what some of the advantages are of buying an offshore life policy with a South African insurer. Price Buying an offshore policy through the branch of a local insurer is cheaper than buying an offshore policy through a foreign insurer, as foreign insurers underwrite South Africans negatively due to the numerous risks they perceive. Taxes A foreign policy issued by a South African i...

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