RL360 LifePlan

The Isle of Man, is a leading offshore financial jurisdiction that offers international professionals tax efficiency.

Isle of Man has is known for investor protection and supervision - they have an AA+ risk rating from Standard & Poor’s (as at November 2012) and an AAA rating from Moody’s (as at November 2010).

Policyholders are said to be protected by the Isle of Man Compensation of Policyholders protection scheme.

However, this does not necessarily protect individual investors from poorly suited products (we would recommend reading the expert verdict).

• RL360's LifePlan pays a cash sum on the death or the diagnosis of a defined terminal illness of the person who's life is assured under the policy.
• If the life assured selects it at the very beginning of the policy, RL360's LifePlan aims to pay a cash sum if the person is diagnosed with a covered critical illness or undergoes a covered medical procedure.

The Isle of Man is known for it's tax efficiency and does not tax any growth or income earned through the policy.

So, apart from any withholding tax that may be deducted at source on income that comes from the investments held in some countries which cannot be reclaimed by RL360, the plan will grow without any further tax deductions.

There are a few disadvantages of the RL360 LifePlan:

1. The charges RL360 deduct from your policy may be higher than those shown in your Personal Illustration.

If that happens, you may have to increase your premium payments to maintain the chosen benefits (it is part of the terms you agree to).

2. Future charges may also be higher than those shown in your Personal Illustration.

For example, premium collection charges may change, or switch charges may be imposed at a later date.

3. If the investment return is less than that expected by you and your financial adviser, you may have to increase your premium payments to maintain the chosen benefits.

4. If you choose not to increase your payments and your policy value runs out your benefits will cease.

5. The value of your policy is linked to your chosen investment funds, whose value may fall as well as rise and is not guaranteed.

6. If you stop paying your premiums earlier, your cover may cease.

7. If you take a premium holiday and your policy value drops during that time, your benefits may be at risk.

8. If you change occupation or move country this could affect the level of premiums you need to pay.

NOTE: RL360's LifePlan cover may not always be available for certain high risk jurisdictions or occupations.

This list contains an overview of the different benefits of RL360's LifePlan.

1. Life Benefits: 

• Primary Life Cover:  This is a benefit that pays out when the person who's life is assured dies.
• Term Life Cover:  This is the benefit that pays out if the relevant life assured dies during a specified period of time as detailed on the plan schedule.
• Terminal Illness Benefit:  some life benefits can be claimed if the relevant life assured is diagnosed as terminally ill (subject to conditions and exclusions).
• Accidental Death Benefit:  This benefit that pays out if the relevant life assured dies in an unfortunate accident.

2. Life Cover:

This applies to you if any of the following benefits are detailed on your plan schedule:
• Primary Life Cover
• Term Life Cover

When RL360 will pay a claim - 
They will pay a claim if the life assured dies during the agreed term of the LifePlan cover.

How much they will pay - 
RL360 will pay whichever of the following amounts is the greatest:
a) the amount detailed on your plan schedule; or
b) your plan value.

RL360 says that if your plan schedule includes term life cover, they will pay, in addition to any other amount payable under conditions mentioned above, the amount detailed on your plan schedule if the claim is made within the term of the cover detailed on your plan schedule.

3. Terminal Illness Benefit:

This applies to you if any of the following Benefits are detailed on your Plan Schedule:
• Primary Life Cover
• Term Life Cover

When they pay a claim -
RL360 pay a claim if the Life Assured is diagnosed with a Terminal Illness during the Term of the Cover subject to a few sub-conditions.

How much RL360 pay - 
They pay whichever of the following amounts is the greatest:
a) the amount detailed on your Plan Schedule; or
b) your Plan Value.

4. Accidental Death Benefit:

If your plan schedule includes Accidental Death Benefit, RL360 will pay, in addition to any other amount payable, the amount detailed therein if the claim is made within the relevant term of the cover detailed on your schedule.

When they will pay a claim -
RL360 says that they will pay a claim if the life assured dies wholly and exclusively as the result of an accident within 90 days of that incident occurring.

How much they will pay - 
RL360 will pay the amount detailed on your plan schedule.

5. Repatriation Benefit:

This is a service that provides the relevant life assured’s beneficiaries with an advance on the primary life cover to assist in transporting the body of the deceased life assured to their home country. This applies to you if repatriation benefit is detailed on your plan schedule.

6. Other:

Guaranteed Insurability Option is a feature that allows you to increase your cover when certain life events happen.

Yes, RL360 allows you to take a payment holiday.

As per them, you can take a break from paying premiums as long as the value of the policy is at least twice the total annual premium.

The policy will also need to have sufficient value to fund the entire premium holiday that you are requesting, otherwise the plan benefits may be at risk.

RL360's charges for coverage will continue and premium payment will need to be restarted at the end of the holiday period.

Your money is invested in the funds of your choice after you pay the charges. You can choose from an array of UK authorised and international collective investment schemes.

A full list of available funds can be found in the LifePlan investment guide that RL360 has on their website.

RL360 allows you to switch between funds without any charge and redirect future premiums into new funds at your free will.

Under LifePlan you may hold up to 5 individual investment funds at any given time.

RL360 allows you to cash in part of your policy provided that the remaining policy is valued at least USD15,000.

You can also cash in your entire policy at any time after which your benefits will cease.

RL360's fund range provides you with access to direct funds without any initial charges or bid/offer spreads. The only fund charge that will apply is the underlying AMC (Annual Management Charge) of the direct fund.

• If you no longer require your plan, RL360 allows you to request for a cancellation. If you do this during the first 2 years you will get no money back (commissions paid to the adviser).
• After that you may receive an amount back which will depend on your payments, charges and fund growth achieved.
• You can withdraw your application at any time before they issue your plan, without any charge.