INVESTORS TRUST

EVOLUTION SAVINGS PLAN

Summary

Investors Trust is a globally recognised brand that represents the ITA Group of Companies.

ITA International Holdings is the parent company of Investors Trust Assurance SPC based out of the Cayman Islands, ITA International Insurer, a Puerto Rico based and licensed company, both rated “A-” by AM Best, and ITA Asia Limited, a Labuan-licensed company based in Malaysia.

Investors Trust work in Cayman Islands, Malaysia and Puerto Rico with service points in Dubai, Hong Kong, Uruguay and a corporate support office in the U.S.

They offer a variety of lump sum products tailored to meet the different risk profiles. Ranging from capital protected fixed income portfolios to alternative investments.

Investors Trust is licensed and regulated by the Cayman Islands Monetary Authority and essentially specialise in the provision of investment–linked insurance.

> Investors Trust offers an online viewer, with ease of topping up, withdrawal and other admin done efficiently.

> Company based in tax-efficient locations.

> Full online applications, speedy set-up process and management tools make for an effective offering.

> There is a borrowing facility, although this is expensive.

> American expatriates cannot be accepted for this platform.

> Advice to open an account should only be taken from reputable and qualified advisers who explain the products in detail so not to mis-represent them.

> Salespeople can add commissions which in turn introduce lock-in periods and surrender penalties.

Key Features

  • The currency options available to you in the Evolution savings plan are USD ($), EUR (€) and GBP (£).

  • The Evolution Savings Plan was launched in 2002, it’s a regular premium life assurance plan.

  • It has a range of investment terms for you to choose from. These include: 5, 10, 15, 20, and 25 years.

  • The minimum contribution amount for the Evolution plan would depend on the type of the plan chosen. It can be as low as USD/EUR/GBP 1,200 per annum or USD/EUR/GBP 12,000 per annum.

  • Fund transfers are free under this savings plan.

  • There are loyalty bonuses on plans of 10 years and above.

  • Guaranteed death benefit: In the event of a relevant death, the standard amount payable will be 101% of the Account Value.

  • Free partial withdrawals are allowed after completion of the initial period.

  • The Evolution savings plan has three different types of offering under it: Evolution, Evolution Plus and Evolution Select.

Charges

The charges of each of the Evolution plans can be summarised below:

1. Evolution

Charge

Annual Administration Charge

Policy Fee

Structure Fee

Surrender Charge

Description

1.9% years 1 - 10
0.35% years 11 thru Term of Plan

USD/EUR 7.00 (GBP 4.5) Monthly

0.125% monthly of fund balance

Equal to the sum of the annual administration charges due for the remaining contract years at the time of surrender

The bid/offer spread is NIL and there is no fund transfer fee for this type of the Evolution savings plan.

2. Evolution Plus

Charge

Annual Administration Charge

Policy Fee

Structure Fee

Credit Card Fee

Surrender Charge

Description

NIL
 

USD/EUR 10.00 (GBP 7.00) Monthly

0.16% Monthly over Account Value (1.92% p.a.)

3.5%

Only 1.92% during first year. No surrender charges after year 1

The bid/offer spread is NIL and there is no fund transfer fee.

2. Evolution Select

Charge

Annual Administration Charge

Policy Fee

Structure Fee

Credit Card Fee

Surrender Charge

Description

1% over Annual Original Premium during 5 years

USD/EUR 10.00 (GBP 7.00) Monthly

0.125% Monthly over Account Value (1.5% p.a.)

3.5%

End of year 1 - 4%
End of year 2 - 3%
End of year 3 - 2%
End of year 4 - 1%
End of year 5 - 0%

NOTE:

  • Monthly payments are only available with credit cards and direct debit.

  • Fund transfers are free up to 15 switches per year.

  • There will be no loyalty bonus for full contribution payment terms less than 10 years. All contribution payments due must have been received within the grace period, with no contribution decreases or partial withdrawals, for the loyalty bonus to take effect.

  • The surrender charge is waived at the end of plan year 15 if all contributions have been paid within the grace period, with no contribution decreases or partial withdrawals, for the first 15 plan years, regardless of the actual term of the full contribution payment term.

  • The issue age limit may vary depending on the jurisdiction.

Final Verdict

The Investors Trust Evolutions savings plan is arguably more attractive than other contractual savings schemes. It is important however you speak to a qualified adviser when considering this plan, not a salesperson, as many will do their best to sell you the longest term possible, which, in most cases, never works out for the client. Make sure you fully understand the intricacies of the plan and work out which is most suited to your needs.

This plan may pay up-front commissions to its distributors. The amount the distributor earns is linked to the length of the policy; the longer the policy term the longer the surrender penalty incurred on early access, the more money the distributor or adviser earns. Many offshore advisers tend to only sell long term (15, 20, 25 year) plans in an attempt to maximise the amount they get paid and may use various sales tactics to make you believe you need a longer term plan.

Himalaya

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