RL360 Insurance Company Limited (RL360) issues RL360 Oracle, an international savings plan and lump sum investment based in the Isle of Man. The plan offers a diverse range of investment options that are tax-efficient and have the potential for growth over the medium to long term.
RL360 Oracle is a guided architecture investment plan that allows for lower lump sum investments. It is available in seven currencies and can be used in a trust. Additionally, investors can appoint an investment adviser, and the guided fund range caters to various attitudes towards risk.
If you have any questions around this article, then please contact me using the button at the bottom of the page and I can arrange a time to call if required. Please be aware this is a review and my opinion on RL360 Oracle.
Reasons Why
When considering an RL360 Oracle plan, it is essential to understand the local taxation position. There are two basis options for the plan: life assurance and capital redemption. A single life basis plan involves one life assured, and the plan comes to an end upon their death. In contrast, a joint life last death basis plan can have up to six lives assured, and the plan comes to an end when the last life assured dies. A capital redemption basis plan remains in force for 99 years, at which point it matures, and the surrender value is paid out. It is not possible to change the basis of the plan after issuance.
Oracle can be structured in up to 100 sub-policies for added flexibility and potential tax advantages depending on the investor’s location. However, unless otherwise specified in the Oracle application, RL360 will automatically set up the plan with 100 sub-policies.
RL360’s Oracle plan is available to individuals, companies, and trustees who are not subject to any legislation that prevents them from making an investment. Individuals must be 18 years or older to apply for Oracle. If the plan basis is life assurance, RL360 cannot accept the application if the youngest life assured is older than 65 years of age.
Oracle planholders can choose from a defined range of approximately 350 investment funds from leading fund houses, covering all major world markets and investment classes. The fund range is reviewed periodically throughout the year to ensure it remains suitable and up-to-date.
Investors can set up their Oracle plan in one of seven major world currencies, and the plan’s currency cannot be changed after issuance. The minimum premium levels for the plan currency are £20,000 initial and £2,500 additional, and premiums can be made in any currency acceptable to RL360.
My Opinion
As linked in my previous blog I would highly urge people that are already in this or have been proposed RL360 to fully understand the rationale why someone is choosing this product and question any IFA that offers this as it is a commission-based offshore bond.
When you have FCA-regulated platforms such as Novia and Morningstar which are low-cost platforms and why Saxo bank makes sense for most people to go into a high cost in a flexible structure like this?
These are normally “sold” on a tax basis but this is rarely used. I have met many IFAs that don’t understand the full tax implications. For example, they differ from country to country and don’t normally travel well in the E.U.
If you are in this I would generally opt for a lower-cost platform if you have been proposed this in most cases I would stay well clear. There are some cases as to why you might go into these types of investments, however, for the majority a platform usually does a better job across the board.
Please read these blogs to get a clearer understanding of how offshore bonds work:
If you have any questions, please contact me using the contact form and I can arrange a time to call if required.
