RL360 Quantum Savings. RL360 is a company based in the Isle of Man that operates in various regions including Asia, Africa, the Middle East, and the UK. They offer the RL360 Quantum Savings plan, which is a regular investment savings plan commonly promoted for education or pension planning purposes. RL360 is part of the RL360 Group, which acquired CMI Insurance Company Limited from Lloyds Banking Group on December 1, 2015. This acquisition has resulted in a combined group with 60,000 policyholders, more than $10 billion in assets under management, and 300 staff members worldwide. It has been separated from Royal London (the UK group) for several years. If you’re looking for better options, our review can help.
If you are considering an RL360 Quantum Savings Plan, be aware that you will need to maintain it for the full term to reap its benefits. You should also carefully consider local tax laws and weigh the lack of flexibility, limited access, and fees that are not always transparent. RL360 Quantum Savings can be a costly option compared to a platform plan, depending on the adviser you use, and the supposed tax benefits may be outweighed by charges and penalties. Furthermore, it does not offer a full range of discounted funds, direct equities, or trackers to invest in.
Attempting to access your investments early may result in penalties between the first three months and two years of premiums.
Pros:
- RL360 Quantum Savings Plan is widely available and sold, and the company has a good rating.
- It provides some tax protection in certain jurisdictions.
- If kept for the original planned term, it may promote a savings mindset.
Cons:
- The plan lacks flexibility, as early withdrawals or full access are subject to penalties.
- Many countries do not recognize any tax concessions, limiting its appeal.
- Commission can wipe out all initial investments, making it an extremely expensive option.
- It does not provide full access to the lowest-cost funds and passive trackers available.
Policy Currency: The RL360 Quantum Savings Plan is available in US dollars, British pounds, Hong Kong dollars, Japanese yen, and Euros. Benefits will be paid in the currency of the plan.
Why Choose the RL360 Quantum Savings Plan: The RL360 Quantum Savings Plan offers a wide range of investment funds from leading fund houses. With over 100 risk-rated funds covering all major world markets and investment classes, you have the flexibility to choose the funds that best suit your needs. The performance statistics are updated monthly, fund prices daily, and Fund Fact Sheets are available for each fund.
Funds: A selection of 150 to 350 funds are available from chosen fund managers.
Initial Unit Charge: An initial unit charge of 0.50% per month will be deducted from the value of your policy’s initial units. This charge will be deducted in arrears throughout the premium term.
RL360 Quantum Savings Plan Promotion: RL360 touts the Quantum Savings Plan as a high-quality product that allows you to save for your future regularly and flexibly. It is an excellent option for supplementing savings outside of a pension or other tax-advantaged vehicles. You can use it to build up cash for significant future expenditures, such as paying school or university fees or supplementing your income in retirement.
Eligibility: The RL360 Quantum Savings Plan is a whole-of-life, regular premium, life assurance contract issued by RL360 Quantum Savings Plan. You can set up a policy in one of seven currencies, including Pound sterling (GBP), Euro (EUR), United States dollar (USD) Swiss franc (CHF), Australian dollar (AUD), Hong Kong dollar (HKD), and Japanese yen (JPY).
Minimums: You can start saving with as little as USD 320 a month, which can be increased later. 100% of each premium paid will be allocated to the purchase of units in your policy. For larger premiums, the allocation rate can increase up to 102%. You can pay premiums via several methods, including credit card, which incurs card charges.
The minimum regular premiums for terms of more than 10 years are £200 monthly. The minimum premiums for terms of less than 10 years are £400. The payment term is selected at the outset for a minimum of five years, although contributions can continue after this time. You can also make top-ups with a minimum of £5,000.
Charges: Charges for the RL360 Quantum Savings Plan depend on the type of plan you choose.
Contract Charge: An ongoing contract charge of 0.125% of the current fund value is deducted each month in arrears. The charge is applied proportionately across both initial and accumulation units.
Policy Fee: A monthly policy fee is deducted in arrears from your policy’s accumulation units. During the initial allocation period, the deduction of the policy fee will create negative accumulation units.
Are Charges Explicit: In general, the charges for the RL360 Quantum Savings Plan are clearly stated, and any professional should be able to interpret them. However, some clients find it challenging to understand charges such as how any early access penalties would be calculated.
If you decide to surrender your RL360 Quantum Savings Plan, there are certain penalties and charges that may apply. If you choose to make a partial surrender, it may be treated as a one-off withdrawal, and further details can be found in the relevant brochure. However, if you opt for a full encashment, surrender charges linked to the policy’s term may be applied, resulting in the loss of most, if not all, of the first 18 months to 2 years’ premiums on policies with an original term of more than 15 years.
While you can surrender your policy at any time during the premium term, it’s important to note that doing so may result in receiving back less than your premiums paid, due to the surrender charge. If you surrender your policy within its initial allocation period, your policy will have no surrender value, meaning you would suffer a 100% surrender charge.
On the other hand, if you surrender your policy after the initial allocation period, but during the premium term, a surrender charge equal to a percentage of the initial unit value will apply, depending on the period remaining between the date of surrender and the end of the premium term. For instance, if you select a 15-year premium term and choose to surrender the policy after 10 years, the initial units within your policy would be subject to a 34% charge, with 5 years remaining until the end of the premium term.
It’s worth noting that the RL360 Quantum Savings Plan is designed as a long-term savings plan, and cancelling the plan early may result in losing a significant portion of the money you’ve saved. In some cases, surrendering the plan early may lead to losing as much as 50% of its value, while receiving nothing back in the first year or so is not uncommon.
My View
I am not going to say if this is a good or bad product as will let you decide on the facts. But, what I will say is that any product when you strip the fees and the bonus and do the math where you are paying 2-4% a year in a product that lacks flexibility has high surrender charges. My question is, do you have other options that cost less with more flexibility? The fact that the people recommending this get 12-18 months of your premiums up front on your signing (this is an obvious conflict of interest and this is on all saving plans not just this one).
Alternatively, for expats, you can go into Saxo or IBRK accounts where these cost 0.05%-0.012%, and then go into low cost ETFs (costing 0.04%0.1%) on a periodic basis which is a hell of a lot cheaper and way more flexible. Again I am not saying this is right for you. You may want the discipline of saving and happy to pay the fees with the lock in periods. I have come across a few cases where people are willing to pay the fees (however they are usually from countries with inflation of 30%+ and just want to get money out of the local currency). However, most expats I would encourage to read between the lines into why an advisor might be looking to sell you this product when they are getting 12 months upfront at your expense, especially when you have several cheaper options unlike when these were mostly sold 15-20 years ago.
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