Give your retirement savings more bang for their BUCC


If you’ve been a client of ours before 2017, you might remember the 50% Buy-Up Cash Conversion (BUCC) Benefit. As we celebrate 20 years in the life insurance industry, we’ve brought it back into the fold to provide a cost-effective means to add significant value to your retirement financial planning.

The lifespan of the average South African has increased considerably, and for Discovery clients engaged with the Vitality programme, this trend has been amplified. We’ve estimated that Gold and Diamond status Vitality members are likely to outlive the average insured South African by at least 20 years.

That means that during retirement, your pockets need to be a little deeper. Your money will need to stretch a little further. So, how can we save up more sufficiently for a financially stable retirement?

“One way is through means of supplementation,” says Discovery certified financial adviser, Adam Helper. “Saving for a sound financial retirement is difficult for many of us, especially when major events, like the COVID-19 pandemic, happen and impact the economy in ways that - for the most part - are out of our own control.”

“Supplementation can take on a few forms, but in the case of a life insurance policyholder, the 50% Buy-up Cash Conversion Benefit - recently reintroduced as a cost-effective retirement financial planning medium - is a really great option,” he adds.

What is the Buy-up Cash Conversion Benefit?

“The benefit provides unmatched value for supplementation purposes, whereby, for an additional premium, clients have the opportunity to receive lump sum pay-outs during retirment as a way of boosting their savings. The better your health and Vitality profile, the better the pay-out,” Helper explains.

“Now, policyholders who have Classic, Essential, Purple and Smart Life Plans will have more options available to supplement their savings through the Buy-up Cash Conversion benefit and can better match their needs as they see fit.”

Key features of the benefit

  • The more a policyholder positively engages with the Vitality programme, the better their health and wellness will ultimately be. This allows Discovery Life to reward the client with higher BUCC pay-outs.
  • The benefit pays out in 4 equal instalments from the age of 65 up until 77. These instalments can then be used to boost retirement savings.
  • The benefit allows the policyholder to earn an annual return on premium of up to 21%.

The Auto Buy-Up Cash Conversion (50%/3 year) offer

To celebrate the reintroduction of the 50% Buy-Up Cash Conversion option, for a limited time, clients can get up to a 100% discount on their Buy-up Cash Conversion premiums for three years. Qualifying new business and existing clients who add any one of the Buy-up Cash Conversion benefit options will receive a premium discount equal to the premium of the 50% Buy-up Cash Conversion option for three years.

“This results in a three-year 100%, 50% or 25% discount on the 50%, 100% or 200% Buy-up Cash Conversion options, respectively.”

“During retirement, these four additional instalment pay-outs can really go a long way in ensuring financial security at a life stage it is most needed. It’s a fantastic benefit that not only celebrates Discovery Life’s 20th anniversary but also the overall value that can be shared with clients who live the very ethos we encourage,” concludes Helper.

To learn more about how this benefit can best work for you and your life plan, contact your financial adviser today.

Please note that the Buy-up Cash Conversion benefit is not an investment product, but a risk benefit. Therefore, this benefit does not have any lapse or surrender value before the payouts become due. Payments commence at age 65 or 10 years after benefit inception, whichever is later.

The information in this article is intended for general purposes only. Discovery Life Investment Services Pty (Ltd), registration number 2007/005969/07, branded as Discovery Invest, is an authorised financial services provider. All life assurance products are underwritten by Discovery Life Ltd, registration number 1966/003901/06. An authorised financial service provider and registered credit provider, NCA registration number NCRCP3555. Product rules, terms and conditions apply.

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