Questions and Answers for Regular Savings Plans – RL360

Generic Links

Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Questions and Answers

We realise that time can be in short supply, especially when you're on the road conducting client meetings. So we have pulled together this list of frequently asked questions to help provide you with the answers you need as quickly as possible.


Changing the plan

Q Can the currency be changed once the plan has started?

A No. The currency must remain the same as the currency selected at application stage.


Payment methods

Q My client would like to pay by credit card. Are there any additional charges for paying by this method?

A We do not pass on any fees charged by credit card providers unless it is American Express. Where payments are made by American Express, we will collect an additional 1% of the value to help cover their fee.



Q My client currently pays into their plan on a yearly basis. They would like to change the frequency to monthly. Can you do this?

A Yes. Once the establishment period is complete payment frequencies can be changed, but only on the plan anniversary.


Allocation rates

Q What allocation rates apply?

A Allocation rates will range from 100% to 102% based on the amount paid into the plan.

For further information, please refer to the Regular Savings Plan Product guide.


Starter bonus

Q If my client increases the amount they pay into their plan, will they qualify for another starter bonus based on the increase?

A Yes. As long as there is more than 10 years outstanding of the original payment term and the increase is in excess of USD5,040 per year.


Loyalty bonus

Q Will clients still qualify for a loyalty bonus if they cancel their plan before the end of the payment term?

A Yes. If a plan is cancelled within 5 years of the end of the payment term, a proportion of the loyalty bonus that would have been paid at the end of the payment term will be added to the plan.

For further information, please refer to the Regular Savings Plan Terms and Conditions.



Q How is the administration charge taken from the plan?

A The administration charge is deducted each month in arrears during the lifetime of the plan. It is deducted proportionally across both the establishment and standard units.



Q Can my client hold assets such as stocks, shares, cash deposits and structured products within their plan?

A No. Your client can only access the funds available in the Regular Savings Plan fund range.

For further details please refer to the Savings and Investment Fund Guide.


Q What charges are applied to the underlying funds that my clients can invest in?

A The fund range provides your clients access to direct funds without any initial charges or bid/offer spreads. Some competitor offerings still apply initial charges up to 2% of each premium paid. In addition, because clients invest directly into their selected funds, rather than via internal mirror funds which some life companies offer, there are no additional mirror fund charges that could dilute the underlying fund performance - all our product charges are taken directly through the savings plan. The only fund charge applied is the underlying annual management charge of the direct fund itself.



Q Why are some illustration early exit values greater than the corresponding fund values for the same year?

A During the last five years of the payment term, a proportion of the loyalty bonus that would normally be applied at the end of the payment term is applied to the plan if it is cancelled early. In certain scenarios this can result in the early exit values being greater than the corresponding fund values. Refer to the "Loyalty bonus" section above for further information.



Q Why does my clients valuation show negative standard units?

A The servicing charge is deducted from standard units. During the establishment period there are no standard units applied to the plan; therefore the servicing charge will create negative standard units. Once the establishment period is complete, subsequent payments will purchase standard units that will in turn reduce the negative unit position.


Online services

Q Is it possible to instruct fund switches online?

A Yes. You can instruct switches online as long as you are registered for our Online Service Centre and have the necessary dealing authority. Read more about our online excellence here.