<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=3003101069777853&amp;ev=PageView&amp;noscript=1">

REVIEW SUMMARY

RL360 LifePlan

RL360 is a global business with an experienced workforce focusing on the needs of customers to deliver solutions. They are based in the offshore financial stronghold of the Isle of Man, from where they do business in Asia, Africa, the Middle East, Latin America and the UK.

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. The group employs over 700 staff and administers assets of £17 billion for over 230,000 customers.

Overview
FAQ
Customer Reviews
Expert Verdict

The RL360 LifePlan is a unit linked, regular premium, whole of life insurance policy, which offers insurance for up to 2 lives assured.

You can choose from a range of options such as primary life cover that pays a cash sum (often referred to as the sum assured) on the death of the life assured and, if selected, critical illness cover that pays a cash sum in the event of a covered critical illness or medical procedure.

The RL360 LifePlan is a flexible life assurance protection policy that can assist with a wide range of scenarios. Whether you require life cover for yourself or want to set up cover for a key man in your business, LifePlan can potentially be tailored to suit these needs.

Quick facts about the RL360 LifePlan: 

  • Protection plan
  • USD 200 per month minimum
  • 3 plan currencies
  • Whole of life cover up to $7,500,000
  • Term cover element
  • Accidental death cover

Some of the key benefits given by RL360 for the LifePlan include:

1. Family protection:
Should the unthinkable happen and you are no longer around to provide for your family, a protection plan offers a lump sum to ensure your children’s education or general living costs can still be met, cushioning the financial loss and change in circumstance that come with a sudden or untimely death.

2. Protect your mortgage or loan: 
You can help to limit any potential financial impact caused by the loss or illness of key business partners, or to simply pay on-going commitments. 

3. Protection for life or a specific period:
You may want protection that covers the whole of your life – and pays out a lump sum to your loved ones upon your death, thus protecting them from the burden of death duties. Or you may prefer protection for a specific term – for example while you are paying a mortgage or when your children are in full time education and still dependant on your income. RL360 protection plans allow you to choose either option.

4. Protect your business:
Protecting a business against the death of key staff is just as important as protecting it from competitors. Having an insurance plan for senior members of staff allows a business to offset any financial losses it might face if they are no longer around.

5. Protect your children:
Starting a protection plan for your child or grandchild when they are young could provide them with a fully funded life insurance plan by the time they are old enough to leave home, giving them a head start in life – for example, if they are looking to cover a mortgage loan.

RL360 LifePlan key features:

  • You can set up a plan in 1 of 3 currencies including Pound sterling (GBP), Euro (EUR) and United States dollar (USD).
  • The minimum term allowed is 5 years.
  • You can arrange term cover alongside whole of life for a specified period. This way, you can have additional cover during the anticipated term of a mortgage or loan, and still have a healthy lump sum on death.
  • You can have whole of life cover, without having to pay for the whole of your life. You choose the payment term, stop paying at your chosen age, and still have a fully funded plan in place – even if you live to 100 (or beyond).
  • The family-friendly guaranteed insurability option, means that if your circumstances change in the future – due to marriage or birth of a child – you may be able to increase your cover without medical underwriting.
  • The RL360 LifePlan benefits are paid for through the cancellation of units, and are taken on a monthly basis, in advance.
  • The value of all benefits cannot exceed USD7,500,000 (or currency equivalent).
  • The fund range provides you with access to direct funds without any initial charges or bid/offer spreads. The only fund charge applied is the underlying annual management charge of the direct fund itself.
  • You or the company you nominate to act on your behalf are responsible for your fund choices. RL360 does not provide investment advice and will not provide you with guidance as to which funds are suitable for you. 

NOTE:
  • In order to obtain life cover they will, in most cases, require you to undertake a degree of medical underwriting.
  • Maintaining cover is subject to you continuing to pay the agreed amount throughout the relevant term.

Key risks of the RL360 LifePlan:

While the risk would entirely depend on the initial commission agreed/setup with the adviser, the key risk factor for individuals seeking flexibility or value is in the establishment charge which pays sales costs such as adviser commissions.

This eats up all premiums for the first two years. Nothing is invested and you cannot get this money back. From year 3 to year 10, you will pay 6% pa (this alone is highly likely to wipe out any growth in funds).

From year 11 onwards, the policy holder pays 2% pa on top of other fees. Since RL360 was subject to a management buy-out and private equity cash injection, it has arguably had more ambitious international distribution policies which include the payment of very high levels of adviser commission.

This may bring with it a number of risks which potential clients should consider prior to entering a policy.

 

The Pros

> Combines different insurances

The Cons

> Expensive
> Inflexible
> Commonly mis-used
Is the Isle of Man a good jurisdiction?

The Isle of Man, is one of the world's leading offshore financial jurisdictions, offering international clients scope for tax efficiency.

Isle of Man has an outstanding reputation for investor protection and supervision, resulting in 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 protected by the Isle of Man Compensation of Policyholders protection scheme.

However, this does not necessarily protect individual investors from poorly suited products.

When does the LifePlan from RL360 pay out?
  • LifePlan aims to pay a cash sum on the death or diagnosis of a defined terminal illness of the life assured.
  • If selected at the beginning of the policy, LifePlan aims to pay a cash sum if the life assured is diagnosed with a covered critical illness or undergoes a covered medical procedure.
What is the tax efficiency of the RL360 LifePlan?

The Isle of Man does not tax any growth or income earned through your policy. So, apart from any withholding tax that may be deducted at source on income arising from investments held in some countries which cannot be reclaimed by us, your investment will grow without any further deductions of Isle of Man tax.

You can also place your protection plan within a trust, which will help you to pass your wealth on tax efficiently.

What are the main risks and disadvantages with RL360's LifePlan?

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.

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 early 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: Cover may not always be available for certain high risk jurisdictions or occupations.

What are the available cover and benefits of the LifePlan?

This list contains an overview of the different Benefits that make up LifePlan.

1. Life Benefits: 

  • Primary Life Cover:  a Benefit that pays out when the relevant Life Assured dies.
  • Term Life Cover:  a Benefit that pays out if the relevant Life Assured dies during a specified period of time as detailed on your 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:  a Benefit that pays out if the relevant Life Assured dies in an 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 Term of the Cover.

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

If your Plan Schedule includes Term Life Cover, they will pay, in addition to any other amount payable under condition B1 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 on your Plan Schedule if the claim is made within the Term of the Cover detailed on your Plan Schedule.

When they will pay a claim -
RL360 will pay a claim if the Life Assured dies wholly and exclusively as the result of an Accident within 90 days of that Accident occurring.

How much they will pay - 
RL360 will pay the amount detailed on your Plan Schedule.

5. Repatriation Benefit:

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.
Can I take a payment holiday?

You can take a break from paying premiums as long as the value of the policy is at least twice the total annual premium.

Your policy will need to have sufficient value to fund the entire premium holiday that you are taking, otherwise the benefits may be at risk.

The charges for coverage will continue and premium payment will need to be restarted after the premium holiday ends.

Where is my money invested with the LifePlan?

After allowing for charges, your money is invested in the funds of your choosing, from a range of UK authorised and international collective investment schemes.

A full list of available funds can be found in the LifePlan Investment Guide.

You can currently switch between funds free of charge and redirect future premiums into new funds whenever you want.

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

Can I cash in part or all of my LifePlan at any time?

You can cash in part of your policy provided that the then remaining policy value is at least USD15,000.

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

What charges are applied to the underlying funds that I can invest in?

The fund range provides you with access to direct funds without any initial charges or bid/offer spreads. The only fund charge applied is the underlying annual management charge of the direct fund itself.

For more information read the Protection Fund Guide for LifePlan.

How can I cancel my RL360 LifePlan?
  • If you no longer require your plan you can request to “cancel” it. If you do this during the first 2 years you will get no money back.
  • 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 charge.

Too many restrictions

At first glance I was impressed with the many benefits lifePlan offers...

But a closer look revealed too many restrictions, and complexity. I just wanted a straightforward insurance plan, so I looked elsewhere.

Expert Assessment of RL360 LifePlan

We do not recommend this plan because we believe other, more cost effective and flexible options, exist.

If you already have the LifePlan from RL360, we recommend you get a Second Opinion to ensure you are on track to get and keep the life you want.

There are likely to be much more suitable solutions for you, at a far lower cost.

RL360 LifePlan Brochure

RL360 LifePlan Investment Guide

RL360 LifePlan Key Features

RL360 LifePlan Product Guide

RL360 LifePlan Terms and Conditions

RL360 LifePlan Fund Performance Bulletin

RL360 LifePlan Protection Fund Guide

RL360 LifePlan Fund Switch Instructions

RL360 LifePlan Form of Discharge

RL360 LifePlan Company Application Form

RL360 LifePlan Split Trust

RL360 LifePlan Temporary Accidental Death Benefit Terms and Conditions

RL360 LifePlan Corporate Trustee Application Form

RL360 LifePlan Bulk Switch Service Guidance Notes

RL360 LifePlan Claims Statistics

RL360 Supplementary Declaration Form

Start getting better results in just one phone call

Ready to start the conversation?

We'll call, learn about you and help you decide if we're a good fit. It's that easy.

Get Started