30th June 2011

Royal London 360° withdraws credit card charges on LifePlan

Royal London 360° has withdrawn credit card fees on its regular premium whole of life international* protection product, LifePlan.

This equates to a saving of 1.5% on every regular premium payment made by a policyholder on their credit card. Generally, offshore life companies will pass this charge (levied by credit card companies) onto policyholders; however, Royal London 360° will cover this cost going forward.

What this means in monetary terms

The following example highlights a LifePlan policyholder who is paying a regular premium of USD 412 per month, with a USD 500,000 sum assured, and who will turn 31 next birthday. Removal of the 1.5% credit card fee per monthly premium paid will save him USD 74 every year, or USD 4,736 over the lifetime of the policy (assuming he pays monthly premiums until the age of 95).

The policyholder could choose to save this money, or increase his monthly premium and invest the extra USD 74 per annum into his LifePlan policy. 

The product

LifePlan aims to pay a cash sum on the death of the life assured, or upon diagnosis of a terminal illness. Its core benefit is Primary Life Cover, which is available up to the value of USD 7,500,000 (or currency equivalent). Term benefits are available until aged 80, and features such as Long-Term Care and Permanent Total Disability are standard.  

It is available in four currencies – Sterling, Dollars, Euros or Japanese Yen.  

Natalie Hall, Head of Marketing at Royal London 360°, commented: “LifePlan’s comprehensive range of features means it is one of the most competitive international protection products in the offshore market, and removal of the 1.5% credit card charge per premium only strengthens its proposition to investors.

“This is another example of Royal London 360° continuing to enhance its proposition by consulting its customers and delivering benefits that matter.”   

* LifePlan is not available for sale in the UK or to residents of the United States of America.   

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