What happens if I want to close the plan early, stop contributing or withdraw some cash?
If a RL360 Regular Savings Plan is cancelled during the 30 day cooling off period, you will receive back your initial payment unless the funds you invested in fall in value. In this case you may get back less than you paid in. A plan cancelled after the cooling off period but during the establishment period has no value – in effect suffering a 100% early exit charge. Once the plan has completed the establishment period, then if it is cancelled in part or in full, then only the establishment units purchased will be subject to an early exit charge.
It is important to be aware that the RL360 Regular Savings Plan is a medium to long-term savings plan, if you decided to completely cancel the plan in the early years you could lose a large proportion of the money you have saved.
RL360 is a life insurance company. They know a customer’s financial circumstances can change at short notice, so the plan includes a payment holiday that allows a saving’s break. You also have the flexibility to take cash out when you like and to pay in extra lump sums. Savers can take a break from contributing to the RL360 Regular Savings Plan for up to two years.
Each RL360 Regular Savings Plan has an establishment period. During this time, each payment made is allocated to establishment units. Once the establishment period has expired, each payment made for the remaining payment term is allocated to standard units. At the end of your plan term, all remaining establishment units are converted into standard units.
If you need to access money during the payment term you can but only after the establishment period is complete. Withdrawals can be made on a monthly, quarterly, four-monthly, six-monthly or yearly. One-off withdrawals are also allowed.
The Regular Savings Plan is designed for capital growth over the medium to long term, so taking regular withdrawals which exceed investment growth are likely to impact the value of any savings.