Comparison of Regular Savings Plans
Select your chosen provider below for information on access penalties, numbers of funds available, commission information, tax position, whether it has immediate access and charges are less than 5%. Further written information is available below provided from providers own documentation.
KEY:
Available
Unavailable
Dependent on resident country and chosen investment/plan type
Old Mutual International Managed Capital Account
What is the Old Mutual International (formerly Royal Skandia) Managed Capital Account:
The Old Mutual International (OMI) Managed Capital Account is an offshore, unit-linked, non-qualifying whole of life assurance policy (or ‘bond’) that accepts single or regular premiums.
Offshore investment contracts grow tax-efficiently, as offshore based life assurance companies are not currently liable to any form of income or capital gains tax on policyholders’ funds. (However, certain investment income may be subject to a non-refundable tax deduction at source in its country of origin – ‘withholding tax’.)
Why choose the Old Mutual International Managed Capital Account:
Many investors find managing a portfolio of funds an administrative burden. With the Managed Capital Account, Old Mutual International takes care of this by establishing a portfolio of Old Mutual International funds within the Account and efficiently managing any paperwork on your behalf.
Normally if a particular investment is underperforming, changing strategy or fund manager may mean you suffer not only exit penalties and new initial charges on a new investment, but also a possible tax liability as well. By choosing an Old Mutual International Managed Capital Account, you avoid this problem and can also enjoy the following benefits:
• A choice of currencies in which premiums can be paid and the Account denominated (currently Sterling, US Dollar, Euro and HK Dollar).
• Flexible premium payment facilities.
• An unlimited number of switches and re-direction of funds at any time, free of OMI administration charge.
• Easy access to your Account by linking it with an offshore Lloyds TSB or Singer & Friedlander bank account.
• Availability of partial or full encashment at any time (an Early Encashment Charge may apply).
• A loan facility, whereby you can borrow up to 50% of the bid value of your Account.
A partial surrender on your savings plan may be treated as a one-off withdrawal but you may not surrender more than the encashment (surrender) value of the plan. Further details on how it is treated is available in the relevant brochure as it is complicated and encashment penalties on long term policies continue for years; a full encashment results in penalties being applied through surrender charges linked to the term of the policy. In effect this means that on polices with an original term of more than 15 years most, if not all, of the first 18 months-2 years premiums are lost upon surrender.
Generali Vision Plan
What is the Generali Vision Plan:
Policy Currency:
The Generali Vision plan may be denominated in US dollar, GB pound, Hong Kong dollar, Japanese yen or Euro, and all benefits will be paid in the currency of the plan.
Why choose the Generali Vision Plan:
Top performing funds, from the leading Fund Houses, offer a wide choice of investment profiles. You can choose from over 100* risk-rated funds covering all the major world markets and investment classes. The funds section contains performance statistics which are updated monthly, fund prices which are updated daily and Fund Fact Sheets on each fund. You can download current International Fund Performance and International Fund Selection leaflets as well as other fund information from the Literature and Forms section of the site.
Eligibility:
Generali Vision Plan is a regular premium, whole of life, life assurance contract issued by Generali International. It is available to most international investors.
Minimums:
The minimum regular premiums for terms of more than 10 years are USD150 monthly, USD450 quarterly USD900 half-yearly or USD1,800 annually. The minimum premiums of the Generali Vision Plan for terms of less than 10 years are three times these amounts.
For Singapore residents the minimum regular premiums for terms of more than 10 years are USD417 monthly, USD1,250 quarterly, USD2,500 half-yearly or USD5,000 annually. For Generali Vision Plans with a premium payment term of less than 10 years the minimum annualised regular premium is USD50,000 divided by the premium payment term. The premium payment term is selected at outset for a minimum of five years although contributions may be continued after this time.
Surrender of the Generali Vision savings plan:
A partial surrender on your savings plan may be treated as a one-off withdrawal. Further details on how it is treated is available in the relevant brochure. A full encashment results in penalties being applied through surrender charges linked to the term of the policy. In effect this means that on polices with an original term of more than 15 years most, if not all, of the first 18 months-2 years premiums are lost upon surrender.
Zurich Vista Savings Plan
What is the Zurich Savings Plan:
Zurich Vista is a life insurance product designed for the savings and investment market. Zurich Vista offers a wide range of unit-linked funds as well as access to the automatic investment strategy which automatically switches your investments from equity based funds to cash and bond-based funds as the policy gets closer to maturity.
You may invest regularly each month, quarter, half year or year:
Zurich Vista also accepts single premium investments. Your investments buy units in funds you choose from the range available. The value of these units will reflect the overall value of your policy at any given time during the policy term.
Why Choose Zurich Vista Savings Plan:
The policy can be written on the following basis:
• Single or joint life first death.
• Own life or life of another.
Zurich Vista will automatically be terminated when:
The maturity date (or any new maturity date) is reached; or the amount of the savings account, plus any death benefit if applicable, is paid on the death of the life insured before maturity; or your policy is encashed prior to maturity; or your policy cannot sustain charges.
Zurich Vista provides you with access to over 180 externally managed ILP sub-funds and you can choose to invest in any combination, up to a maximum of 30 at any one time.
For detailed information on the sub-fund manager, objectives, composition, structure and performance of each sub-fund, please refer to the fund reports and directly to the individual sub-fund managers.
The value of your Zurich Vista policy will become payable at the maturity date. The value of your policy will also be paid if the life insured dies. The surrender value of your policy will be paid if the Zurich Vista policy is surrendered before the maturity date.
Surrender of the Zurich Savings Plan:
A partial surrender on your savings plan may be treated as a one-off withdrawal. Further details on how it is treated is available in the relevant brochure. A full encashment results in penalties being applied through surrender charges linked to the term of the policy. In effect this means that on polices with an original term of more than 15 years most, if not all, of the first 18 months-2 years premiums are lost upon surrender.
Friends Provident Savings Plan
What is the Friends Provident Savings Plan?
The Friends Provident savings plan is intended for regular savings. It should not be taken out unless you intend to contribute for the majority of the term. Once started it must be continued for 18 months but thereafter payments can be reduced or stopped and restarted without penalty to meet changing circumstances. Lump sums may be added at any time and withdrawn without penalty at any time. At maturity the plan pays out in full – it does not provide a pension.
Why Choose the Friends Provident Savings Plan?
The first 18 months of your regular contributions plus the first 18 months of any increase are used to purchase initial units.
These have a penalty if you withdraw them before the end of your plan. They also carry a penalty if you do not complete the first 18 months contributions (which can be up to 100%) or the first 18 months of any increase.
All regular payments for the Friends Provident savings plan after the first 18 months are used to purchase accumulation units.
Lump sums can be added at any time and also purchase accumulation units. All accumulation units can be withdrawn without notice at any time.
Bonus:
The first 18 months contributions are enhanced by 5% for $500 or more per month. This is increased to 10% for contributions of $1,000 or more. For contributions over $2,000 an additional 1% is added for each year of the plan up to a maximum of 15% bringing the max bonus for $2,000 or more to 25%.
Friends Provident Savings Plan charges:
The initial units have a charge of 1.5% per quarter and there is a plan fee of $6 per month.
There is no entry cost (bid-offer spread) for regular payments; they buy units at the bid (exit) price. However lump sums will be subject to a bid-offer spread of 7%, that is they are deposited at the offer price and immediately drop down to the bid price. All withdrawals and switches between funds are done at the bid price.
There are other hidden charges, taken out before the funds are priced and so are not seen:
Friends Provident savings plan take 1.2% pa out by reduction of the fund prices each day. The performance of the mirror funds are therefore 1.2% pa less than the underlying funds being mirrored.
The funds themselves have internal charges (but have been selected based on their net performance.
Surrender of the Friends Provident Savings Plan:
A partial surrender on your savings plan may be treated as a one-off withdrawal. Further details on how it is treated is available in the relevant brochure. A full encashment results in penalties being applied through surrender charges linked to the term of the policy. In effect this means that on polices with an original term of more than 15 years most, if not all, of the first 18 months-2 years premiums are lost upon surrender.
Hansard Regular Premium Vantage Savings Plan
What is the Hansard Regular Premium Vantage Savings Plan
Hansard Vantage is a regular contribution unit-linked contract designed for savings and retirement benefit planning.
Why Choose Hansard Vantage Savings Plan:
Applicants must be between 18 years and 65 years of age at date of commencement. It can be written on a single-life or joint-lives
first-death or second-death basis.
Applications cannot currently be accepted from residents of the United States of America and cannot normally be accepted from residents of the European Union member states.
Hansard Vantage contract term:
The contract will mature on expiry of the term, which must be agreed at outset, unless fully surrendered prior to the end of the term. The term should be at least 10 years and no more than 25 years. Hansard Vantage is not suitable for contract holders who will be aged over 75 at maturity. The term should be for a complete number of years.
Maturity benefit:
At the end of the selected term, the value of the contract will be the value of the initial and accumulator units allocated, calculated at the applicable unit bid prices.
Minimum contributions:
Contract holders may make contributions in most freely convertible currencies, with the minimum contribution level being set at the date the contract is put into force by converting the GBP limit to the chosen contract currency.
Once contributions have been made for two years, future contributions may be reduced or waived provided certain conditions are met.
Increases to regular contributions: (‘top-ups’)
Increases to contributions to the Hansard Vantage can be made at any time and are directed to a new contract. No service charge is applied on the new contract while the base contract is in force. The term of the new contract must be a complete number of years.
Standard sum assured:
On the death of the life assured (or the first life assured to die for a joint-lives first-death contract, second-life assured to die for a joint-lives second-death contract) before the agreed maturity date, the standard sum assured is 101% of the value of the initial and accumulator units. The value is calculated using the applicable bid price of units.
Surrender and withdrawal from Hansard:
On early withdrawal from, or full surrender of, a Hansard Vantage contract after payment of the first two years’ contributions, the appropriate numbers of accumulator units are surrendered at their full unit value using the applicable unit bid prices. Following a withdrawal the contract must have an accumulator unit value of not less than GBP 1,000. Withdrawals are subject to a charge. Initial units have no monetary value except at the end of the chosen term or prior death. The minimum withdrawal at any time is GBP 100. In effect this means that most, if not all of the first 18 months-2 years premiums are lost upon surrender.
Prudential International Portfolio Bond
What is the Prudential International Portfolio Bond:
The Prudential International Portfolio Bond allows access to a wide range of investment choices with the aim of increasing the value of the money you invest. It is country specific and mainly aims at UK and Guernsey although, other countries may be considered such as Spain and France. Prudential International does not currently offer a regular premium savings plan to clients overseas.
The Prudential International Portfolio Bond Investment:
The minimum initial single investment is £50,000 or currency equivalent when you take out the bond. The minimum top up amount is £5,000 or currency equivalent.
The Prudential International Portfolio Bond Term:
There is no stated investment term on the Prudential International Portfolio Bond. If you decide to cash it in completely, an exit charge may apply in the first 5 years.
How is the Prudential International Portfolio Bond set up:
The Prudential International Portfolio Bond is set up as a group of identical polices. The standard number is 20, although you can choose to have more or fewer. You can cash in each policy separately ,which may help you withdraw money in a tax efficient way.
What are the Charges of the Prudential International Portfolio Bond:
All charges of the Prudential International Portfolio Bond are shown on the personal illustration obtained from your financial adviser. The first year of your investment, you are entitled to the first 20 deals within the costive the policy and then 10 deals per year for the life of the bond. There is then a charge of £23.90 per deal thereafter.
RL360 Quantum Savings Plan
What is a RL360 Quantum Savings Plan:
RL360 Quantum Savings Plan is a regular premium of shore savings policy issued in the Isle of Man by RL360 Insurance Company Limited (Royal London 360°). It is linked to a wide range of funds in a way that is tax efficient and offers the potential for growth, over the medium to long term.
Why choose RL360 Quantum Savings Plan:
Individuals, companies or trustees can apply for a RL360 Quantum Savings Plan provided they are not subject to any legislation which prohibits this type of investment. Individual applicants aged 18 or over can apply on a single or joint ownership basis (i.e. husband and wife), however the lives assured can be different to the applicants if required. There is no maximum age for individual applicants provided that the youngest life assured is no older than 65 years of age when the policy is issued.
Premiums:
At the start of your RL360 Quantum Savings Plan you have the option to select premium indexation which will allow you to increase your premiums automatically on each policy anniversary. You can choose to increase your premiums by either 5% or 10% per year of the original premium level. You can increase your premiums at any time on request. Each premium increase will create its own initial allocation period, surrender charges, premium incentive and loyalty bonus arrangements where applicable. There is no maximum premium limit. You can request a reduction in your premiums generally at the policy anniversary providing the policy has completed its initial allocation period.
Discontinuation of premiums:
Provided the RL360 Quantum savings plan has completed the initial allocation period and the fund value is above the minimum level*, a request can be made to discontinue the payment of future premiums into the policy, and change its status to paid up. Standard charges will continue to apply, with the exception of the policy fee which will increase.
Surrender of the RL360 Quantum Savings Plan:
A partial surrender on your RL360 Quantum Savings Plan will be treated as a one-off withdrawal. Further details on how this works can be found in the section “Can I take withdrawals from my Quantum policy?” You can of course surrender your entire policy at any time, but you should be aware that if you cash in during the premium term, your fund value will be subject to a surrender charge and you may get back less than you invested. An RL360 Quantum savings plan surrendered within its original initial allocation period will acquire no surrender value – in effect suffering a 100% surrender charge. Once the RL360 Quantum Savings Plan has completed the initial allocation period, should the policy be surrendered in part or in full, then the initial units purchased will be subject to a surrender charge. The surrender charge applied is based on the remaining years of the premium term. In effect this means that most, if not all of the first 18 months–2 years premiums are lost upon surrender.
Related video about Regular Premium Saving Plans
This might save some people a lot of money.
This video is 10 minutes in length and the first 5 minutes explains how the above plans are sold, and then goes onto explain the reality and what could be done instead. We hope you enjoy it.
See various video’s about this at our channel TAILORMADE FUTURE.
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