Savings plans like the RL360° Quantum Savings Plan are designed to run alongside expat pensions, not to replace them.
Quantum aims to offer somewhere to build savings for significant future expenses, such as weddings, private schooling or just a place to sensibly put extra savings for retirement.
That’s why the plan is more flexible than a pension in some ways, despite having a much shorter 10-year term.
Review of RL360 Quantum Savings Plan
RL360 Quantum is a regular savings plan that acts as a cash builder for expats who have relatively modest amounts of money to put aside.
If you are over 18 and have decided to save at least £200 a month for five years or more, then Quantum may be for you.
Savers can take money when they like after the initial allocation period has ended, even if they are well below the 55-year-old age limit for drawing pension cash.
And subject to certain rules, the RL360° Quantum Savings Plan has a realistic loyalty bonus for consistent savers.
The final decision depends on your tax residence and how tax rules vary between different countries.
Who is RL360°?
RL360 Insurance Company is an international life insurance company based on the Isle of Man, a bastion of offshore financial services for expats.
The company says the 360 degrees label is to reflect the range of products and services the company offers and where the firm’s customers live.
The firm boasts 15,000 policy holders in 170 countries.
The firm’s mother company, International Financial Group (IFGL) employs 335 staff serving a customer base of 70,000 policyholders and manages $10 billion of assets for investors.
The company operates worldwide, and besides the Isle of Man, has offices in Hong Kong, Lebanon, Malaysia and Dubai.
Quantum is a regular savings plan that acts as a cash builder for expats who have relatively modest amounts of money to put aside.
Benefits for expats
The RL360° Quantum Savings Plan offers a range of benefits for expats saving for specific events or to build a cash reserve to bolster their pension later in life.
Minimum savings limit
Expats can save how much they wish, providing the minimum level of US$320 is hit. If you want to save more, then the contribution can be changed later.
Set up your policy is one of seven major world currencies – the British Pound (GBP), Euro (EUR), United States dollar (USD), Swiss franc (CHF), Australian dollar (AUD), Hong Kong dollar (HKD) or Japanese yen (JPY).
All your savings is allocated to buying units, and for large premiums, this can increase to 102%.
Putting money into your RL360° Quantum Savings Plan is easy – by direct debit or transfer from your bank account or credit card without any additional charges.
RL360° Quantum Savings Plan has a huge range of funds and there are no charges for moving your savings between funds, sectors or investment themes between funds whenever you wish.
The plan offers a choice of more than 170 funds and savers can have money in as many as they like, providing they maintain the low regular premium for each fund, which is generally £25 a month.
Keep up with your account, savings and investments at anytime 24/7 with the RL360° online platform, accessible from anywhere with internet access.
RL360° Quantum Savings Plan is a life insurance company. They know a customer’s financial circumstances can change at short notice, so the plan includes a contribution holiday that allows a saving’s break. You also have the flexibility to take cash out when you like and to pay in extra lump sums.
Savers can take a break from contributing to the RL360° Quantum Savings Plan for up to two years.
The charges for the RL360° Quantum Savings Plan are typical for the market:
- A 0.5% a month initial unit charge
- £5 (or the currency equivalent) a month policy fee
- Annual charges of 1.5% of fund value, deducted monthly
Companies in this market tend not to compete on price, but on features and benefits.
Many cynics in the life industry criticise loyalty bonuses as a carrot dangled in front of clients that is unlikely to pay out.
RL360° Quantum Savings Plan is different. The loyalty bonus is clearly explained and applied.
The bonus depends on how long the savings plan has been open and is paid on the number of full years of premium payments. This does mean that each customer is likely to receive a different bonus amount, but something is paid in every case.
Obviously, the longer the policy is held and premiums maintained, the higher the bonus paid.
Access to cash
Each RL360° Quantum Savings Plan has an initial allocation period. During this time, no money can be taken from the plan.
The length of the initial allocation period depends on the terms you have agreed with your independent financial adviser.
Once the period has expired, savers can withdraw money monthly, quarterly, four-monthly, six-monthly or yearly. One-off withdrawals are also allowed.
The company points out that Quantum is a regular savings policy designed for capital growth over the medium to long term, so taking regular withdrawals which exceed investment growth are likely to impact the value of any savings.