RL360 Quantum is an offshore regular savings plan that RL360 closed to new business on 1 July 2019. If you took it out while living abroad, you probably still hold it, and you may be wondering what it is costing you, whether you can stop paying, and whether a newer plan would be better. This page explains how Quantum works, what the charges and exit penalties look like, and the options open to existing holders.
It is general information for UK expats, not personal advice. The figures below come from RL360’s 2015 key features document for Quantum. Your own policy schedule is what counts, so check every number against it.
This guide sits under our wider section on regular savings plans for expats. RL360’s current plan is covered in our RL360 Regular Savings Plan guide.
RL360 Quantum at a glance
| Feature | Summary |
|---|---|
| Provider | RL360 Insurance Company Limited, Isle of Man |
| Status | Closed to new business since 1 July 2019. Quantum Malaysia and Paragon closed on the same date |
| Existing holders | Can usually keep paying, top up and switch funds |
| Type | Regular premium offshore savings plan |
| Initial unit charge | 0.50% a month |
| Contract charge | 0.125% a month |
| Policy fee | Fixed monthly amount, indexed to Isle of Man RPI |
| Bonuses | Premium incentive and loyalty bonus of 0.25% a year |
| Death benefit | 101% of fund value |
| Compensation | Isle of Man scheme, covering 90% of the claim |
Is RL360 Quantum still available?
No. RL360 stopped selling Quantum to new customers on 1 July 2019. Its replacement for new savers is the Regular Savings Plan. Existing Quantum plans were not cancelled. They carry on under their original terms, and holders can generally continue paying their regular premiums, add top-ups and switch between funds.
We keep this page because many of the people who contact us hold an old plan like this one. They often want to know what it is costing them and whether a newer plan, or something else entirely, would be a better fit. Those are fair questions, and the answer is not always to move.
How Quantum works
Quantum is a long-term regular savings plan. You chose a term, usually between 5 and 25 years or more, and agreed to pay a fixed premium each month, quarter, half-year or year. Your payments buy units in the funds you selected. There is no guaranteed return, and the value can fall as well as rise.
Like most plans of this type, the charges are weighted towards the early years. The initial unit charge is taken from the units bought by your early payments, and the cost of leaving rises sharply if you stop before the end of the term. That is why the position of your plan on the timeline matters so much when you decide what to do.
Currencies and minimums. Quantum was offered in several currencies with minimum premiums set by currency and term. The exact minimum for your plan is on your policy schedule.
Funds. You choose from RL360’s fund range and can switch between funds. Fund charges are built into the price of each fund and are in addition to the plan charges below. Check the fund factsheets for the annual charge on each one you hold.
Charges explained
These are the main charges described in RL360’s 2015 key features document. Your plan terms may differ.
| Charge | How it works |
|---|---|
| Initial unit charge | 0.50% a month of the initial units, taken over the initial period of the plan |
| Contract charge | 0.125% a month of the plan value |
| Policy fee | A fixed amount each month, rising each year in line with the Isle of Man retail price index |
| Fund charges | Vary by fund and are built into fund prices |
| Adviser charges | Whatever was agreed with your adviser, which may be taken from the plan |
What this means. The initial unit charge of 0.50% a month works out at 6% a year on the initial units, and the contract charge of 0.125% a month is 1.5% a year. Add the policy fee, which rises with inflation, and the fund charges, and the total cost of a Quantum plan in its early years is high. It generally falls as the initial period ends. Your annual statement and a charges quote from RL360 will show the figures for your plan.
Check who is being paid. If your plan was arranged by an adviser, find out whether they still receive an ongoing fee from it, what they do in return, and whether you can change that. An ongoing fee that is paid but not used is one of the most common problems we see on older plans.
Premium incentive and loyalty bonus
Quantum paid a premium incentive on longer terms, which added extra units at the start, and a loyalty bonus of 0.25% a year. These bonuses are paid for by the charges, and they depend on staying in the plan. If you stop or cancel early, you may lose some or all of the bonus value. A bonus is only worth having if you complete the term.
Surrender and early exit charges
Cancelling a Quantum plan before the end of its term triggers a surrender charge, which depends on how many years of the term remain. The longer you have left, the larger the charge. The 2015 key features document gave examples such as these.
| Years left on the term | Example surrender charge |
|---|---|
| 1 year | 8% |
| 5 years | 34% |
| 10 years | 56.5% |
| 15 years | 71.5% |
| 30 years | 91.5% |
These charges apply to the initial units, not to the whole fund, so the amount you actually lose depends on how many initial units you still hold. The practical point is simple: the cost of leaving is greatest early in a long term, and falls as the term runs down. Ask RL360 for a written surrender value before you decide anything, and ask what the value would be at the end of each of the next few years.
Your options if you hold a Quantum plan
There is no single right answer. What suits you depends on how far through the term you are, how your circumstances have changed and what the plan is now worth.
1. Keep paying to the end of the term. This is often the best result if you can afford it, are well into the term and the funds are suitable. You avoid the surrender charge and receive the bonuses.
2. Stop paying but keep the plan. Many plans allow premiums to be paused or stopped, which makes the plan paid up. The money stays invested and continues to bear charges, and you may lose bonuses. Check the effect on your plan before you do this.
3. Review the funds. Fund choice is the one thing you can change at no extra plan cost, and many older plans sit in expensive or poorly performing funds. A fund review does not require you to leave the plan.
4. Take money out. Regular withdrawals from Quantum are limited, with a cap of 10% a year in the 2015 document. Withdrawals reduce the fund and can have tax consequences where you live.
5. Surrender the plan. You receive the surrender value, after the charge. This ends the plan, and may be the right choice if your circumstances have changed greatly, but it is usually the most expensive option.
6. Move to a newer plan. Some clients ask about switching to the RL360 Regular Savings Plan or to another provider. This is covered in the next section.
Should you move to a newer plan?
Moving from Quantum to a new plan is possible, but it is not automatically better, and it can be worse. Be cautious about any suggestion to move unless the numbers clearly support it.
- A new plan starts a new term and usually a new establishment or initial period, with its own front-loaded charges.
- If you surrender Quantum to fund the move, you pay the surrender charge and may lose accrued bonuses.
- Any bonus on the new plan is paid for by its charges, and may be lost if you stop early.
- The new plan may have lower ongoing charges, a wider fund range or better flexibility. That is the only good reason to move.
A fair comparison needs the total cost of staying against the total cost of moving, in money, over the same period. It should include the surrender charge, the new plan’s charges and any adviser fees. If the person recommending the move earns commission on the new plan, ask them to say so in writing.
Where a move does make sense, it is usually because the existing plan is expensive to keep, the funds are poor, an ongoing adviser fee is going to someone who provides no service, or the plan is in the wrong currency. Where the plan is nearly finished, moving rarely helps. Our review will show you the figures either way. You can read about the current plan in our RL360 Regular Savings Plan guide.
Tax for UK expats
The plan is issued in the Isle of Man. That does not make it tax-free for you. Tax depends on where you are resident when you surrender, withdraw or die, and rules differ by country. If you return to the UK, gains on an offshore plan can be taxed as chargeable event gains, which can be significant. If you may come home, tell your adviser, because it affects whether it makes sense to keep the plan. See our guides to offshore investment bonds and inheritance tax for UK expats.
How to find out what your plan is worth
- Log in to the RL360 online service, or ask RL360 for your latest statement.
- Ask for a written surrender value now and at the end of each of the next three years.
- Ask for a breakdown of the charges you are paying, in money, over the last 12 months.
- Check which funds you hold and their annual charges.
- Check whether an adviser is still being paid from the plan.
RL360 Quantum: frequently asked questions
1. Can I still buy RL360 Quantum?
No. It closed to new business on 1 July 2019.
2. Can I keep paying into my Quantum plan?
Existing holders can generally continue paying and can add top-ups. Confirm the position for your plan with RL360.
3. What happens if I stop paying?
The plan may become paid up, with the money staying invested and charges continuing, or you may surrender it and pay the surrender charge. The effect on bonuses depends on your terms.
4. How much will I lose if I cancel?
It depends on the years left on your term. The 2015 examples ranged from 8% with one year left to over 90% with thirty years left. Ask RL360 for a written surrender value.
5. Is RL360 Quantum the same as Quantum Malaysia?
No. Quantum Malaysia was a separate version for Malaysian residents. It also closed in 2019.
6. Is my money safe with RL360?
RL360 is an Isle of Man insurer. Policyholders may be covered by the Isle of Man compensation scheme, which protects against the insurer failing but not against investment losses.
7. Should I move to the Regular Savings Plan?
Only if the figures show a clear benefit after the surrender charge and the new plan’s charges. A move starts a new term and new front-loaded charges.
8. Can I take money out of Quantum?
Yes, within the plan limits. The 2015 document capped regular withdrawals at 10% a year.
9. What happens when I die?
The 2015 document stated a death benefit of 101% of fund value. How it is paid depends on ownership and any trust. See our guide to wills and trusts for UK expats.
10. Can you review my plan?
Yes. Send us your latest statement and policy schedule and we will set out the costs, your exit position and your options. There is no obligation.
Get your Quantum plan reviewed
If you hold a Quantum plan and are unsure what to do, we can show you what it costs, what you would get back if you stopped, and whether a different route is worth considering. Request a callback and we will arrange a time that suits your time zone.