Who Are:
RL360?
RL360 is a company headquartered in the Isle of Man, actively engaged in business across Asia, Africa, the Middle East, and the UK. With a global presence, the company extends its operations worldwide and maintains offices in Hong Kong, Lebanon, Malaysia, and Dubai. RL360 specializes in providing offshore savings, protection, and investment products catering to expatriates and local nationals globally.
With a substantial reach, RL360 boasts 70,000 policyholders in 170 countries. Notably, the company is no longer affiliated with Royal London, having separated from the UK-based group several years ago. RL360 is under the umbrella of its parent company, the International Financial Group (IFGL), which employs 335 staff and effectively manages $10 billion in assets for investors.
***Some of these products may have commissions built directly into them. If you've been advised to consider an RL360 investment policy reach out to us to explore if we can establish the policy at a lower cost.
Kevin's Review:
RL360 is one of the largest providers of international insurance wrapped investment accounts in the market.
Their true USP is the international portability of their products as well as the tax efficiencies offered by certain countries - the UK being the most prominent.
Offering both lump-sum (PIMS) and regular savings policies (RSP/Quantum) as life assurance or capital redemption, it is especially important you consult a qualified financial adviser to ensure your policy is set up correctly.
Being insurance wrapped, these accounts are often very powerful wealth planning tools (beneficiary nomination, for example) however, there can be pitfalls when miss-sold or used in the wrong circumstances.
These are long-term wealth planning vehicles as much as they are investment accounts and should be taken out only when appropriate to do so and with the proper time horizon in-mind.
Investment Bond:
PIMS
RL360's Personalised Investment Management Service (PIMS) is a single premium offshore/international savings policy issued by RL360 Insurance Company Limited in the Isle of Man. It offers a diverse range of tax-efficient investment options with the potential for growth over the medium to long term.
PIMS is a portfolio bond providing a choice between fully open and guided architecture, available in seven policy currencies. It can be utilized in a trust and allows the appointment of a discretionary fund manager or an investment adviser, catering to various attitudes toward risk.
The policy can be structured into life assurance or capital redemption:
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Life assurance:
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Single life: Involves a single life assured, and the policy concludes upon their death.
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Joint life last death: Permits up to 6 lives assured, concluding when the last life assured dies.
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Capital redemption:
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The policy remains in force for 99 years, maturing at the end, with a surrender value payout.
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The basis of the policy cannot be changed after issuance.
PIMS can consist of up to 100 sub-policies, providing added flexibility and potential tax advantages based on location. RL360 typically sets up the policy with 100 sub-policies unless specified otherwise in the application.
There are two variations: PIMS Focused and PIMS Flexible:
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PIMS Focused: Allows investment in a defined range of investment funds.
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PIMS Flexible: Permits investment in any RL360-acceptable investment, offering full open-architecture.
Eligibility for PIMS extends to individuals, companies, and trustees, excluding those restricted by legislation from making investments. Individual applicants must be 18 years or older, and for life assurance-based policies, RL360 cannot accept applications if the youngest life assured is 85 years or older.
Investment choices vary between PIMS Focused and PIMS Flexible. PIMS Focused offers around 1,000 defined investment funds, resulting in a lower charging structure compared to the fully open-architecture PIMS Flexible.
PIMS can be set up in one of seven major world currencies, and once issued, the currency cannot be changed. Policy valuation and fee deductions are performed in the chosen currency.
The minimum contribution levels for premiums depend on the policy currency, with GBP having initial and additional premium requirements of £50,000 and £5,000, respectively. Premiums can be paid in any acceptable currency.
To obtain a valuation or view plan statements, RL360 provides access to its online platform, RL360°, which is available 24/7. This platform allows you to keep track of your account, savings, and investments from anywhere with internet access.
Regarding charges, the RL360 PIMS (Personalised Investment Management Service) has a flexible charging structure that can be customized to suit your needs. The main elements include:
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Allocation Rate: This is the rate at which your premium is applied to the policy, which can be below, equal to, or above 100%, depending on the chosen charging elements.
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Establishment Fee: This fee is taken over a set period (5, 8, or 10 years) as a percentage of your premium, with an early surrender fee applicable during the same period.
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Percentage Administration Fee: This fee is taken throughout the lifetime of your policy as a percentage of the higher of your premium or its current policy value. An early surrender fee applies, and you can choose from 8 or 10 years.
In addition to these flexible elements, there is a flat administration fee, a dealing fee for investment transactions, and fees for cash deposit accounts (available under PIMS Flexible).
The investment fees applied depend on the investments linked to your PIMS policy and may include initial and annual management charges, performance fees, and exit fees, determined by the investment manager. RL360 may receive institutional discounts, resulting in lower initial charges than direct investment.
If you want to close the plan early or make a partial withdrawal, a partial surrender may be treated as a one-off withdrawal. Minimum acceptable one-off and regular withdrawal amounts, as well as minimum PIMS policy values after a withdrawal, apply. One-off withdrawals can be in an easily exchanged currency, while regular withdrawals are in the PIMS policy currency and can be set up at the policy's inception or requested later.
Full encashment incurs penalties in the early years through surrender charges linked to the policy's term. RL360 emphasizes that the PIMS Plan is a long-term investment, and canceling the plan early may result in the loss of a proportion of the invested funds.
Investment Bond:
ORACLE
RL360 Oracle is a lump sum investment and international savings plan issued in the Isle of Man by RL360 Insurance Company Limited. This plan provides a wide range of tax-efficient investment options with the potential for growth over the medium to long term.
Key features of RL360 Oracle include:
Guided Architecture: Oracle is a lower lump sum investment plan offering guided architecture. It is available in seven plan currencies, providing flexibility and catering to various investment needs.
Trust and Adviser Appointment: The plan can be used in a trust, and it offers the option to appoint an investment adviser to assist with investment decisions.
Life Assurance or Capital Redemption: Oracle plans can be set up either as life assurance or capital redemption.
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Life Assurance: Can be structured with a single life assured, where the plan concludes upon their death, or as joint life last death, where the plan ends with the death of the last life assured.
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Capital Redemption: The plan remains in force for a total of 99 years, maturing at which point the surrender value is paid out. The chosen basis cannot be changed after issuance.
Sub-policies: Oracle can be structured with up to 100 sub-policies, offering added flexibility and potential tax advantages based on the location.
Eligibility: Oracle is available to individuals, companies, and trustees, provided they are not subject to any legislation preventing them from making an investment. Individual applicants must be 18 years of age or older, and for life assurance-based plans, RL360 cannot accept applications if the youngest life assured is older than 65.
Investment Choice: Oracle planholders can invest in a defined range of approximately 350 investment funds from leading fund houses. The fund range is periodically reviewed to ensure its suitability and relevance.
Multi-currency: The plan can be set up in one of seven major world currencies, including GBP, EUR, USD, CHF, AUD, HKD, or JPY. Once issued, the plan's currency cannot be changed, and valuations, charges, and fees are conducted in the chosen currency.
Minimum Contribution: Premiums are subject to minimum levels based on the plan currency. For GBP, the minimum initial premium is £20,000, and additional premiums must be at least £2,500. Initial and additional premiums can be made in any acceptable currency.
It's important for individuals considering RL360 Oracle to fully understand the local taxation position before proceeding with the plan.
To get a valuation or view plan statements for your RL360 Oracle Plan, you can utilize the RL360 online platform, which is accessible 24/7 from anywhere with internet access. This platform allows you to keep track of your account, savings, and investments.
The payment allocation for the Oracle Plan offers increased allocation from the start, with the rate ranging from 100% for the minimum payment of £20,000 up to 105% for payments exceeding £150,000.
The charges associated with the Oracle Plan include:
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Establishment Charge: This charge is taken over a 5-year period as a percentage of your premium, and an early exit charge applies during the same period. The establishment charge ranges from 0% to 7.50%.
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Administration Charge: This charge is taken throughout the lifetime of your plan as a percentage of the higher of your premium or its current plan value. The administration charge ranges from 0.60% to 1.20%.
There are no dealing or custody charges for the Oracle plan. Investment fees depend on the investments linked to the plan and may include initial and annual management charges, performance fees, and exit fees. RL360 may receive institutional discounts, resulting in lower initial charges for investors compared to direct investment.
In the case of foreign exchange transactions, RL360 performs them at a rate determined by RL360 based on commercially available rates in the market.
Bonuses applicable to the Oracle Plan include a loyalty bonus of 0.50% of the plan value, applied at the sixth plan anniversary and annually thereafter, as long as the plan remains active. Additionally, each additional payment (top-up) attracts its own loyalty bonus.
If you wish to close the plan early or make a partial withdrawal, a partial surrender may be treated as a one-off withdrawal. Minimum acceptable one-off and regular withdrawal amounts, as well as minimum plan values after a withdrawal, apply. Withdrawals can be in an easily exchanged currency and can be taken monthly, quarterly, half-yearly, or yearly. A full encashment incurs penalties in the first 5 years through exit charges linked to the plan's term. Canceling the Oracle Plan early may result in losing a proportion of the invested funds, emphasizing that the plan is designed for the long term.
Regular Savings Plan:
Regular Savings Plan (RSP)
RL360's Regular Savings Plan serves as a cash-building solution for expatriates looking to set aside modest amounts for the long term. This international product requires individuals aged 18 to 65 to commit to saving an agreed-upon amount regularly for a pre-determined number of years.
Key features of RL360's Regular Savings Plan include:
Eligibility and Commitment:
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Individuals aged 18 to 65.
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Saving at least £200 a month for a minimum of five years.
Flexibility and Purpose:
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Designed to complement expat company pensions rather than replace them.
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Offers flexibility, with the ability to access funds when the establishment period ends.
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Aims to build savings for future expenses such as education, university, or retirement.
nvestment Choice:
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Provides a wide range of funds.
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No charges for switching savings between funds, sectors, or investment themes.
Multi-currency:
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Can be set up in one of seven major world currencies: GBP, EUR, USD, CHF, AUD, HKD, or JPY.
Minimum Contribution:
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Minimum monthly contribution of US$280.
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Saving terms range from 5 to 25 years.
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Minimum contributions are £400 per month for 5–9 years and £200 per month for 10 years and beyond.
Contribution Methods:
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Contributions can be made through direct debit, bank transfer, or credit card.
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No additional charges for using a credit card, except for American Express.
Online Access:
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Valuation and plan statements can be accessed 24/7 through the RL360 Online Service Centre from anywhere.
The RL360 Regular Savings Plan is positioned as a flexible and international option for expatriates looking to systematically save for various financial goals.
Charges for RL360's Regular Savings Plan:
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Establishment Charge:
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0.50% per month deducted from the value of establishment units.
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Deducted in arrears throughout the payment term.
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Administration Charge:
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Ongoing charge of 0.125% of the current plan value.
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Deducted monthly in arrears.
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Applied proportionately across both establishment and standard units.
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Servicing Charge:
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Monthly charge of £5 or currency equivalent.
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Deducted in arrears from the plan's standard units.
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Increases annually in line with the Isle of Man Retail Price Index.
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Annual Management Charge for Funds:
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Typically between 0.5% and 2% for the funds held within the plan.
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Discounts or Bonuses:
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Bonuses vary based on savings level, term, plan duration, and the number of full-year contributions.
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Bonuses increase with the length of the plan and consistent payments.
Cancellation and Withdrawal:
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During the 30-day cooling-off period, cancellation results in a refund of the initial payment, unless fund values have fallen.
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Canceling during the establishment period incurs a 100% early exit charge on establishment units.
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After the establishment period, canceling results in an early exit charge on establishment units only.
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RL360 provides flexibility with a payment holiday, allowing a break from contributions for up to two years.
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Withdrawals are permitted after the establishment period, on a monthly, quarterly, four-monthly, six-monthly, or yearly basis.
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One-off withdrawals are also allowed.
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Regular Savings Plan is designed for medium to long-term capital growth; frequent withdrawals exceeding investment growth may impact savings value.
Regular Savings Plan:
Quantum
RL360 Quantum Solution Overview:
1. Purpose and Target Audience:
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RL360 Quantum is a regular savings plan designed for expats with modest amounts to save.
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Aimed at individuals over 18 saving a minimum of £200 a month for five years or more.
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Provides flexibility for building savings for various purposes, such as future expenses or retirement.
2. Plan Flexibility:
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International regular savings plan.
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Runs alongside expat pensions, offering a place to build extra savings.
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Flexible structure with shorter terms compared to domestic pensions.
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Savers can access money from accumulation units after the initial allocation period.
3. Investment Choice:
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Offers a decent range of funds.
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No charges for transferring savings between funds, sectors, or investment themes.
4. Currency Options:
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Policies available in seven major world currencies:
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British Pound (GBP), Euro (EUR), United States dollar (USD), Swiss franc (CHF), Australian dollar (AUD), Hong Kong dollar (HKD), or Japanese yen (JPY).
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5. Contribution Minimums:
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Expats can save any desired amount, with a minimum contribution of US$320.
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Contribution levels can be adjusted later.
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Contract terms range from 5 to 25 years, with varying minimums.
6. Funding Options:
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Contributions accepted through direct debit, bank transfers, or credit card.
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No additional charges for credit card payments.
7. Online Access:
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RL360° online platform allows 24/7 access to account information, savings, and investments.
Note: RL360 Quantum is mentioned as discontinued for new investors. The details provided are based on historical information and may not reflect current offerings or availability.
1. Charges:
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Initial Unit Charge:
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Rate: 0.50% per month.
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Deducted from the value of initial units.
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Charged throughout the premium term.
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Contract Charge:
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Rate: 0.125% of the current fund value per month.
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Applied proportionately across initial and accumulation units.
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Deducted monthly in arrears.
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Policy Fee:
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Monthly fee from the policy's accumulation units.
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Amount: £5 or currency equivalent.
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Deducted monthly in arrears.
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Additional Charges:
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Funds subject to an annual management charge (AMC).
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Typically between 0.5% and 2%.
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Impact on overall return from the plan.
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2. Bonuses:
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Bonus depends on the duration of the savings plan and the number of full years of premium payments.
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Each customer may receive a different bonus amount.
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Longer-held policies with maintained premiums result in higher bonuses.
3. Surrender and Withdrawal:
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Surrender within the initial allocation period results in a 100% surrender charge, no surrender value.
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After the initial allocation period, surrender incurs charges on initial units.
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RL360 Quantum Savings Plan is medium to long-term; canceling early may result in substantial loss.
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Contribution holiday available for up to two years.
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Flexibility to take cash out or make extra lump-sum payments.
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Withdrawals allowed monthly, quarterly, four-monthly, six-monthly, or yearly, with one-off withdrawals permitted.
4. Initial Allocation Period:
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RL360 Quantum Savings Plan has an initial allocation period during which no withdrawals are allowed.
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Length of the initial allocation period determined by terms agreed with an independent financial adviser.
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After the period expires, withdrawals become flexible.
5. Plan Objective:
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RL360 Quantum is designed for capital growth over the medium to long term.
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Regular withdrawals exceeding investment growth may impact savings' value.
Note: The information provided is based on historical data and may not reflect the current terms or offerings. It is advisable to consult with RL360 or a financial advisor for the latest details.