QUANTUM SAVINGS PLAN
RL360 are based in the Isle of Man, conducting business in Asia, Africa, Latin America, the Middle East and the UK. They provide offshore savings, protection and investment products to international professionals and local nationals.
RL360 is part of International Financial Group Limited (IFGL). IFGL provides investment, savings and protection solutions to international investors around the world and the group comprises RL360, RL360° Services, Ardan International and now also Friends Provident International.
> Promotes concept of saving if all contributions are made throughout the term.
> No flexibility of full withdrawal or full access in the early years without penalty. Surrender charges mean you may get back less than your premiums paid.
> The bonus depends on how long the savings plan has been in force and is paid on the number of full years of premium payments you make. It is not unusual to get 0 value back
> Does not provide access to a range of assets and lowest cost funds.
> Many countries do not recognise any tax concessions.
> Long term contracts often sold which pays high commissions to salespeople and product is often mis-sold.
Note: As of July, 2019, the RL360 Quantum Savings Plan is no longer open to new clients.
If you hold the old product, do not hesitate to get in touch for a second opinion.
The contract is available in GBP, USD, EUR, CHF, AUD, HKD or JPY.
You can surrender your policy at any time, but during the premium term it will be subject to a surrender charge and you may get back less than your premiums paid.
RL360 is subject to Isle of Man tax laws. The Isle of Man does not tax any growth or income earned in your policy. However, withholding tax may be deducted at source on income arising from investments held in some countries, which cannot be reclaimed by them.
You can switch between funds and redirect future premiums whenever you want.
There are two types of plans you can take out under RL360's Quantum:
Life assurance option:
The life assurance option is issued on a single life or joint life, last death basis. In most cases the life/lives assured are also the applicant(s); however they can be different if required. The youngest life assured can be no older than 65 years of age when the policy is issued. The policy will remain in-force until the death of the last life assured or the policy is surrendered.
Capital redemption option:
The capital redemption option has no lives assured linked to it. The policy can remain in-force for a total of 99 years (inclusive of the premium term) at which time the fund value plus USD160 (or currency equivalent) will be payable and the policy will come to an end. If the policy is surrendered early, then the fund value (less any early surrender charges if applicable) will be payable.
The charges of RL360's Quantum Savings Plan can be summarised below:
Initial Unit Charge
External Fund Management Charge
A charge of 0.50% per month of the value of initial units will be deducted by cancellation of initial units. This charge will continue throughout the premium term, or until the 30th policy anniversary if earlier.
There will be a contract charge equal to a defined percentage per year of the current fund value, deducted each month. The current contract charge is 1.5% per year, deducted as 0.125% of the current fund value every month. It will be deducted through the proportional cancellation of initial and accumulation units.
A policy fee of GBP5.00/EUR6.00/CHF7.50/USD8.00/AUD9.00/HKD62.50/
JPY850.00 will be deducted from the policy each month through the cancellation of accumulation units.
The manager of each external fund will deduct an annual management charge. This will be allowed for within the pricing of the individual funds, at a rate determined by the manager of each fund.
1. Regular withdrawals:
In order to be able to take withdrawals from your policy, your original premiums’ initial allocation period must be complete and you must have built-up accumulation unit value. As regular premiums do not purchase accumulation units until after the initial allocation period is complete, you may not be able to take withdrawals straightaway.
Regular withdrawals may be taken as a percentage of the fund value, or as a fixed amount. Regular withdrawals are subject to minimums (GBP250, EUR300, CHF375, USD400, AUD450, HKD3,125, JPY42,500).
The total amount of regular withdrawals you can take in any one policy year cannot exceed 10% (inclusive of any investment adviser fee if applicable) of the fund value at the start of the policy year. Regular withdrawals will be paid in your policy currency and can be paid monthly, quarterly, termly, half-yearly, yearly.
2. One-off withdrawals:
The maximum withdrawal will be limited to the value of accumulation units held in your policy and cannot be greater than the surrender value of the policy or it can bring the fund value below the minimum amount of USD8,000 (or currency equivalent).
The value of the funds linked to your policy may go down as well as up and are not guaranteed.
Where the provider of a fund linked to your policy becomes insolvent or is unable to meet its liabilities for any reason, your policy will suffer the loss.
The RL360 Quantum Savings Plan can have high charges on early access. You may not get back all of your savings with an RL360 Quantum Savings Plan and there are no guarantees that the portfolio will give you the returns you are expecting, but any attempt to take proceeds early in the plans life, or make it paid up, will result in access penalties or higher charges on the remaining invested funds, or both.
More cost effective, flexible and less complex options are now available for international professionals.
The RL360 Quantum Savings Plan pays high up-front commissions to its distributors and it has a successful network of distributing agents throughout the world. 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.
Get in touch
Whether you need a second opinion, want to find a qualified adviser, or just have some questions, Expat Money is here to help.
We'll call or email, learn about you and take you through your options.