Many people choose to invest offshore with RL360°, but at the same time, there are many people who think about canceling their accounts.
RL360° itself as a regular foreign investment is excellent. However, because the introducer is not good, the contract has been made unreasonable, and as a result, they choose to cancel.
What will the surrender value and surrender charge be in this case? This is easier to understand if you know how the initial account works with RL360°. Also, at this time, you can consider switching to another offshore financial institution.
So, let’s check out the initial account structure of RL360°, the surrender value, and also how to cancel RL360°.
Table of Contents
- 1 Initial Account Structure for Surrender Refunds and Surrender Charges
- 2 How to Cancel RL360°?
- 3 Many Offshore Investment Refugees at RL360°
Initial Account Structure for Surrender Refunds and Surrender Charges
As is common with offshore savings investments, when you invest with RL360°, you will initially save in an initial account. The initial account is the amount of money you can accumulate in the first two years.
Strictly speaking, the duration of the RL360° initial account depends on the number of years of the contract (accumulation period) as follows.
- 5 to 18 years: 18 months
- 19 years: 19 months
- 20 years: 20 months
- 21 years: 21 months
- 22 years: 22 months
- 23 years: 23 months
- Over 24 years: 24 months
For the initial account, the funds will be locked up until maturity. Therefore, you will not be able to make withdrawals, and if you close the account before the first two years have passed, you will forfeit the entire amount. In other words, there is no surrender value.
On the other hand, you can withdraw freely from your savings account after the initial account period is over. Therefore, you should consider that the surrender value is mainly the amount saved in the savings account.
The Longer the Accumulation Period, the Less the Surrender Charge
Note that a portion of the initial account may be returned to you even if it does not mature.
The RL360° surrender charge is imposed on the initial account. As mentioned above, if you cancel early, such as within two years, the cancellation fee is 100%. However, if you have accumulated for a longer period of time, the surrender charge for the initial account will decrease according to the number of years accumulated.
However, if you cancel within 10 years, the cancellation fee for the initial account will be more than 50%. If you cancel within 4 years, the cancellation fee will be more than 70% of the initial account.
People looking for ways to cancel their RL360° accounts are often those who have been investing for a short time. Therefore, the surrender charge will be high, and you will surely lose your principal.
If the Contract Is Not Good Enough, Cancellation Is Preferable
Offshore investments, including RL360°, are meaningful only if you invest in a savings account until maturity. You should not cancel the contract.
However, there are a lot of introducers who do not tell you these things, and emphasize that you can aim for an annual interest rate of over 10%, and that you can withdraw during the investment.
However, in reality, it is not always the case that the assets will be managed according to the simulation presented by the introducer. Therefore, if the introducer is a fraud, you will be tricked into subscribing to the product, which will result in a loss.
In worse cases, you may be told that you can stop paying after two years. However, RL360° charges a very high fee of 6% per year for the initial account, and that will surely reduce the principal.
Therefore, if you have started investing with an unreasonable amount of money, it is advisable to cancel your account early before the damage spreads.
How to Cancel RL360°?
So how do you actually cancel your RL360° policy? Just as you did when you signed up for RL360°, you need to tell your IFA (Independent Financial Advisor) that you want to cancel.
You will then be able to obtain the necessary application documents for cancellation. The documents are as follows.
Because of the difficulty of insurance cancellation, it is hard to know what to include. Therefore, in addition to ordering the documents through your IFA, you should also ask your agent what to include in the form.
Send Money by Specifying a Bank Account in Your Home Country
In this case, there is a box to specify your bank account. Make sure to write down the name of the bank where you are depositing the money, and also look up the SWIFT code in advance.
In RL360°, you will be managing your assets in a US dollar account. Therefore, you may think that you need to have a US dollar account at a bank.
However, you do not necessarily need a US dollar account. Even if you specify a saving account in the local currency of the country where you live, your money will be converted at the current exchange rate and transferred to your bank account in the local currency. Therefore, there is no need to have a US dollar account.
Since RL360° will be sending money overseas to your country, there will be many items to include. Therefore, it is best to ask your IFA in advance to avoid any mistakes.
If You Can’t Contact the Referrer, Cancellation Becomes Difficult
However, there are so many cases where people cannot contact their referrers and are not sure which IFA they signed up from because they have subscribed from a bad referrer.
In the case of RL360° in particular, it has been widely introduced through multi-level marketing (a business method similar to a pyramid scheme), which is characterized by a very large number of forceful solicitors. This is why cases occur; you cannot get in touch with them if a few years have passed after signing up.
In such cases, you need to contact RL360° directly to cancel your contract.
You Can Switch to Other Offshore Funds
Note that among offshore investments, RL360° is known for its high fees. This means that it is difficult to increase your money even if you invest in the same way as other financial institutions.
Therefore, if you are investing with RL360°, you should consider switching to another offshore investment. Although you will not get most of your initial account back, you can use the money you have saved in your savings account and switch to another offshore financial institution.
In this case, since it is a new contract, you can change your investment plan and adjust the monthly payment to a reasonable level. Also, since you can use the money you have saved up so far, you can manage your assets under better conditions than others.
As a matter of fact, the performance of each IFA is completely different. Therefore, if you have negative investment results, you can change financial institutions and sign up with an IFA that has excellent investment results, and you will finally be able to earn more than 10% annual investment profit.
Many Offshore Investment Refugees at RL360°
RL360° is one of the most typical financial institutions when it comes to regular foreign investment. Perhaps because of the large number of solicitors, many people sign up with RL360°.
Although RL360° itself is a legitimate company, it is common to find that the introducer has made fraudulent solicitations, and the contract details are unreasonable. In such cases, it is advisable to consider it a learning experience and choose to cancel early. Even if you stop paying, RL360° has high fees and charges 6% of the initial account every year, so if you leave the account without canceling, your assets will keep decreasing.
Although the surrender charge is high and the surrender value is inevitably low, you should consider surrendering early to avoid widening the damage.
However, if you are unable to contact the introducer, the cancellation process will be more difficult. In this case, you need to contact RL360° directly for cancellation.