RL360 Quantum is a regular premium, whole of life, life assurance contract. It has historically been available to most international investors.
If a RL360 Quantum savings plan is surrendered within its original initial allocation period, it will have no surrender value – in effect suffering a 100% surrender charge.
Once the RL360 Quantum savings plan has completed the initial allocation period, then if the policy is surrendered in part or in full, the initial units purchased will be subject to a surrender charge.
The surrender charge applied is based on the remaining years of the premium term. In effect this means that most, if not all of the first 18 months – 2 years premiums are lost upon surrender.
There are a variety of fees and charges that apply to the plan including the Initial Unit Charge, Contract Charge, Policy Fee, External Fund Management Charge, Investment Adviser Fee and Miscellaneous Charges: all these will impact on the return you receive from the plan.
It is relatively easy for this endowment type of regular savings plan to be mis-represented. The main area of contention is often to do with a lack of perceived flexibility and difficult to understand charging structures.
However, clients are often also unaware that upon early full encashment most, if not indeed all, of the first 18 months – 2 years premiums are lost through surrender charges.
Simply put, this entire family of regular savings plan (known as Maximum Investment Plans) has now been superseded by other better options. A little like cassette players being replaced by iPods, the outdated construction of this plan makes it a highly unattractive for international investors who wish to maximise their return.