24 August 2019

Platinum Plus

This product is no longer available to new customers

Platinum Plus is a regular premium and lump sum ‘with-profits’ investment, which is designed to help your money to grow over the medium to long term (5 years or more). This can be held as an ISA or stand-alone policy. It is no longer available to new investors, but if you have already invested in our with-profits investment, below are a few useful reminders about your investment, which covers:

  • An overview of how the 'profits' are shared out with investors
  • The current Bonus Rates and MVR rates which may apply
  • The latest performance, and information about how we are managing your money
  • A reminder of the charges which apply

It’s important to remember that this type of investment carries a degree of risk and its value can fall as well as rise, so you may get back less than you put in.

How the profits are shared out

  • When you invested in Platinum Plus, your money was pooled together with lots of other investors’ money in our ‘with-profits fund’. This fund is managed by a team of experienced investment professionals.
  • The fund's investment strategy is to achieve growth in the value of the fund by investing in a wide range of assets, comprising of UK and overseas shares, government and other bonds, property, cash, alternative and other investments.
  • And because some of us want to invest for longer than others, we also have to make sure that everyone who invests in the ‘with profits fund’ is paid out a fair value for their investment when they come to cash it in.
  • So, any profits from the investments made by our expert Fund Managers are added back to the ‘with profits fund’. And then shared-out amongst all the investors, by adding bonuses to their investments.
  • Your returns are ‘smoothed’ over time, so that you are cushioned from the daily ups and downs of the stock market. In this way, with-profits investments are suitable for long-term investors looking for the prospect of better returns than are typically available on cash savings while not wanting full exposure to stock market volatility. However, unlike cash savings, the cash-in value of your investment may go down as well as up and you could get back less than you have invested. Please also read the Market Value Reduction section of this guide.
  • We add annual bonuses and review these on a regular basis. Annual bonuses allocate part of the profits of the fund to policyholders, increasing your plan value. Details of bonuses and market value reductions are shown on your annual statement.

Investment detail

Annual Bonus

We distribute the profits of the ‘with-profits fund’ by allocating annual bonuses.

Final Bonus

When you cash in your plan, or in the event of death a Final Bonus may also be applied, to make sure you are paid-out a fair value for your investment at the time. Details of any Final Bonus will be included on your annual statement. Or, if you request a valuation of your plan over the phone, we’ll include this for you as part of the valuation.

Market Value Reduction (MVR)

In certain circumstances, when you cash in your plan, we may reduce the cash-in value if it is greater than your fair share of the fund. We would do this by applying an MVR. If we didn’t do this, we would pay out more than your plan is worth. This would reduce the amount available for other customers when they leave the fund in the future, which would be unfair. An MVR will not be applied in the event of death.

Due to the current economic climate & market conditions, as from 14th February 2013, there are no MVRs being applied on Platinum Plus policies.

You can find out more about MVRs and these rates, by reading our brochure:

Download Adobe Acrobat

(Documentation will open as a PDF in a new window).

Investment term

Platinum Plus is a medium to long-term investment and there’s no fixed end date, so you can invest for as long as you like.

ISA & Investment limits

You can invest a minimum of £35 a month regular payments or a minimum of £1000 lump sum. Lump sums are only permitted on ISA policies which continue to receive regular premiums or have contributed regular premiums in the current tax year.

Please make your cheques payable to RL Marketing (CIS) Ltd and write your Platinum Plus ISA number on the reverse.  If you are topping up your ISA, the money needs to come from a bank account in your name.

ISAs will be subject to a maximum annual subscription limit. The ISA allowance for 2018/19 is £20,000. As Platinum Plus is closed to new business, only those customers continuing to contribute by direct debit can take advantage of these limits.

Money which has been invested in an ISA wrapper is not subject to income or capital gains tax.

Withdrawals and Cashing in

A minimum withdrawal amount of £200 applies to Platinum Plus ISA withdrawals. This does not apply if you withdraw from your Platinum Plus investment held outside an ISA, or if you withdraw from your Platinum Plus Overflow account at the same time as your Platinum Plus ISA.

You can cash in all, or just part of, your investment at any time. When you do, we need to ensure you are paid a fair value for your investment at that time, by applying a Final Bonus, to ‘top-up’ your investment, or a Market Value Reduction (MVR), which would reduce the value of your plan. You should also remember that if you make a partial withdrawal this will reduce the value of your investment.

Before 1st March 2018, in addition to the MVR, cash-in charges may have applied to withdrawals of any contributions made 3 years prior. This cash-in charge has been removed for any withdrawals made from 1st of March 2018 as shown below:

Number of months since contribution was paidCash in charge prior to 1st of March 2018  Cash in charge from 1st March 2018
Less than 12 months 6% 0%
At least 12 months but less than 24 months 4% 0%
At least 24 months but less than 36 months 2% 0%
36 months or more 0% 0%

Changes to your premiums

With effect from April 2008, lump sum payments are no longer accepted, unless these constitute a ‘top up’ payment to an existing regular contribution into an ISA. Your investment continues to offer the potential for competitive returns.

Existing contributions may be reduced (subject to the current minimum investment amount of £35 per month) but may not be increased, except where regular contributions are increased within an ISA in line with the ISA subscription limits. You can also choose to stop payments into your Platinum Plus policy and the value invested can be retained and continue to accrue bonuses.

Please note - if you choose to stop payments into your policy, you will not be able to restart your regular premiums. Should you wish to consider these options, please contact our Customer Contact Centre on 03456 057777.

Death benefit

Platinum Plus is also a life assurance policy. This means that an amount equal to 101% of the current policy value at the time is paid out if the policyholder dies while they hold their investment. Please note that an MVR will not be applied in the event of a death claim.

Statements

We will send you a statement once a year, to let you know how your investment is performing. Your statement will tell you whether an Annual Bonus has been added to your investment and the current Bonus Rate at the time, or whether any MVR applies at the time, if you were to cash in your investment.

You can request a valuation of your investment at any time by calling us on 03456 057777.

Analysis and performance

Investment returns

It’s important to remember that past performance is not a reliable indicator of future performance.

If you’d invested a regular premium of £50 per month into a Platinum Plus (non-ISA) during the last fourteen years, this table shows you what you would have got back after allowing for final bonuses and surrender charges.

Duration of investment at 1 April 2016 (years)Total premiumns paid (£)Surrender value at 1 April 2016 (£)Rate of return obtained (% pa)Surrender charge (£)
7 4,200 5,455 7.4 72
8 4,800 6,478
7.3 72
9 5,400 7,340
6.7 72
10 6,000 8,250
6.2 72
11 6,600 9,273
6.0 72
12 7,200 10,445
6.0 72
13 7,800 11,728
6.0 72
14 8,400 13,028
6.0 72
15 9,000 14,178
5.8 72

If you’d invested a single premium into a Platinum Plus (non-ISA) with an initial investment of £1,000 during the last fourteen years, this table shows you what you would have got back.

Duration of investment at 1 April 2016 (years)Surrender value at 1 April 2016 (£)Rate of return obtained (% pa)
7 1,805 8.8
8 1,501
5.2
9 1,401
3.8
10 1,569
4.6
11 1,801
5.5
12 2,017
6.0
13 2,407
7.0
14 2,117
5.5
15 2,121
5.1

Single premium investments are more exposed to the value of the underlying assets on the investment date, whereas regular premium investments will potentially benefit by averaging out the peaks and troughs in the value of the underlying assets over time

The mix of investments as at 31 December 2015

How we manage your investment

We produce a document called ‘The Principles and Practices of Financial Management’ which explains your investment. You can find the latest version here.

We also produce a ‘customer friendly’ version of ‘The Principles and Practices of Financial Management’ which you may prefer.

Fees & charges

  • There is no initial charge on your Platinum Plus investment
  • The yearly expenses of managing your investment are allowed for when we set the bonuses that we apply to your policy.
  • For premiums paid by regular direct debit, we have recently simplified the way we apply these yearly expenses charges. We are now applying a flat rate of 1.5% each year of the plan value. This charge has been applied from the start of your plan and replaces the previous charging structure. The new charge is being applied in this way to ensure that you will not be charged any more than we originally quoted to you when we sold you the plan. If we change the charge in future we will write to tell you. Please note that this change applies only to contributions paid by regular direct debit. No change is being made in respect of contributions paid by lump sum.
  • For lump sum premiums, the specific yearly expenses charge applied can be found in this document.
  • Withdrawing & Cashing-in charges may apply - see Investment detail tab.

Tax treatment of an ISA

  • All proceeds are free of income tax and capital gains tax
  • Income from dividends and interest is received net of tax from the underlying investments.
  • CIS can reclaim tax deducted from Interest income from the Inland Revenue.
  • The favourable tax treatment is reflected in the bonuses payable on policies held within an ISA

Tax treatment within the Stand-alone and ISA Overflow

  • All policies are non-qualifying and a chargeable event occurs on cashing in a policy, on payment of the death benefits or if assigned for value.
  • Dividends from UK company shares are paid out of taxed profits and are not subject to further tax in the life fund.
  • The rate of tax applied to other UK investment income is currently 20%.
  • Capital gains on sales of investments are taxed

You will find more information about taxation in our brochure, “Key Features of The Co-operative Platinum Plus” which you received when you invested.

 

Download Adobe Acrobat

In addition to the above information, the attached product guide is intended to provide you with an 'at a glance' guide to the most important features of your Platinum Plus policy: (Documentation will open as a PDF in a new window).

Terms and conditions

About the Royal London Group | Legal Information | Modern Slavery Statement

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RL Marketing (CIS) Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 3390839. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RLUM Limited is authorised and regulated by the Financial Conduct Authority. Registered in

England and Wales number 2369965. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

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