Discovery Dollar Life Plan - any good?

[hj2k_x]

This thing here: https://www.discovery.co.za/life-insurance/personal-cover-in-dollars

Anyone doing it? Can someone explain the pros and cons? Struggling to find much info on it on the website. Is the minimum monthly investment R495 (which is "worth" 50 dollars)?

 

[lucifir]

interesting ... looking at options considering the fail with momentum

 

[beefymoocow]

This thing here: https://www.discovery.co.za/life-insurance/personal-cover-in-dollars

Anyone doing it? Can someone explain the pros and cons? Struggling to find much info on it on the website. Is the minimum monthly investment R495 (which is "worth" 50 dollars)?

I have the normal life cover but it Looks like it works the same. Its just that instead of receiving rands you get dollars at a predetermined rate. So if you get r10 mil life cover for 1k a month you can choose a dollar version of the policy where you get 1 mil dollars for 1k rands a month. I see the rate is 10 rand to the dollar on their website.

 

[hj2k_x]

I have the normal life cover but it Looks like it works the same. Its just that instead of receiving rands you get dollars at a predetermined rate. So if you get r10 mil life cover for 1k a month you can choose a dollar version of the policy where you get 1 mil dollars for 1k rands a month. I see the rate is 10 rand to the dollar on their website.

Yeah that seems to be how it works.

Does it tie into the Vitality Rewards program at all?

 

[beefymoocow]

Yeah that seems to be how it works.

Does it tie into the Vitality Rewards program at all?

Not really with your weekly vitality rewards but rather your status ie diamond. It will also tie with your medical aid n you claim process. It also ties with your retirement. I get 45% cashback of my premiums since I'm on diamond n I hardly go to hospital (single n no kids). And if I elect to use the cashbacks into my retirement discovery doubles its to 90%.

So to get the best benefits you need vitality with medical and retirement plan with your cover. You also get small benefits if you have motor insurance and a credit card but its not that great. Like if you get permanently disable while having a credit card. Your cashback doubles from healthy foods n the likes.

 

[hj2k_x]

Not really with your weekly vitality rewards but rather your status ie diamond. It will also tie with your medical aid n you claim process. It also ties with your retirement. I get 45% cashback of my premiums since I'm on diamond n I hardly go to hospital (single n no kids). And if I elect to use the cashbacks into my retirement discovery doubles its to 90%.

So to get the best benefits you need vitality with medical and retirement plan with your cover. You also get small benefits if you have motor insurance and a credit card but its not that great. Like if you get permanently disable while having a credit card. Your cashback doubles from healthy foods n the likes.

Ok thanks. Maybe worth checking out, I guess.

 

[beefymoocow]

Ok thanks. Maybe worth checking out, I guess.

But only do it if you willing to commit to this product. Its expensive if you cancel. But rewarding if you stay till the end.

 

[hj2k_x]

But only do it if you willing to commit to this product. Its expensive if you cancel. But rewarding if you stay till the end.

Makes sense that way I suppose.

 

[lucifir]

But only do it if you willing to commit to this product. Its expensive if you cancel. But rewarding if you stay till the end.

what do you mean?
Are there cancellation fees?
Its an interesting product, especially since the exchange rate is so erratic, but generally the dollar tend to hold value as its the global currency, so generally a safer bet than the rand

 

[beefymoocow]

what do you mean?
Are there cancellation fees?
Its an interesting product, especially since the exchange rate is so erratic, but generally the dollar tend to hold value as its the global currency, so generally a safer bet than the rand

There is always cancellation fees. But im mostly refering to my bonuses you get. I "get" an extra 60% on my contributions to retirement each month. So if i contribute 10k i get 16k. And it grows in line with my investment. But i need to keep my life policy. Rather speak to a financial adviser. Its a little bit more complicated than my expkanation.

 

[hj2k_x]

There is always cancellation fees. But im mostly refering to my bonuses you get. I "get" an extra 60% on my contributions to retirement each month. So if i contribute 10k i get 16k. And it grows in line with my investment. But i need to keep my life policy. Rather speak to a financial adviser. Its a little bit more complicated than my expkanation.

And is the minimum spend each month R495 or does it add up to more with charges or other things you also have to pay?

 

[beefymoocow]

And is the minimum spend each month R495 or does it add up to more with charges or other things you also have to pay?

I dont think theres a minium charge. My premium escalates by about 7% each year due to my cover increasing by inflation and age risk factor. I know you can get life cover less than 500 rand.

 

[hj2k_x]

I dont think theres a minium charge. My premium escalates by about 7% each year due to my cover increasing by inflation and age risk factor. I know you can get life cover less than 500 rand.

Ok just trying to figure out this wording on the website:

 

[beefymoocow]

Ok just trying to figure out this wording on the website:

Maybe its for the dollar version of the cover but remember i read somrwhere the rate is locked for 3 years. So after three years if the rand weakens you may have to pay current spot rate.

 

[hj2k_x]

Maybe its for the dollar version of the cover but remember i read somrwhere the rate is locked for 3 years. So after three years if the rand weakens you may have to pay current spot rate.

Ok I'll send Discovery some questions and see what they say...