The new version of PIMS (Personal Investment Management Service), as the bond is known, has no lives assured and will mature after 99 years.
The bond does not have to end on someone’s death, and there is no expectation for it to be held until its maturity date. RL360° say the 99 year time frame is in place for planning purposes, allowing holders to create tax planning structures for heirs, corporate and executors.
Upon maturation, the bond will pay out the surrender vale plus a guaranteed £100 (€121, $167).
The previously-available life assurance version of PIMS will remain on the market. However, policyholders will not be able to switch between this and the capital redemption version once a policy has been issued.
Earlier this week, International Adviser revealed that RL360 and its private equity partners Vitruvian paid £126m to buy the company from Royal London Group, its former owner. The sale of Royal London 360, now RL360, to its management team, was led by chief executive David Kneeshaw and completed in November last year.
At the time, Kneeshaw said: “We believe this transaction is the first of its type in the offshore life space, and it allows us to follow a long-term plan with the capital stability we require to continue to expand our business internationally and enhance our platform-linked approach with the UK.
“We remain fully committed to our existing products, markets, partners and customers. Once the transaction is completed we will move swiftly to realise RL360°’s existing growth plans."
Click here to read an interview with RL360° chief executive David Kneeshaw.