A unit-linked insurance policy is a single premium life insurance contract that is invested in a portfolio of assets following the strategy or strategies selected by the policyholder and can be used in financial planning to achieve various objectives like retirement planning, education planning or for general capital savings investment or perhaps used in conjunction with inheritance/succession planning.
The policyholder is the owner of the policy and each insurance policy is linked to a segregated underlying portfolio held by an independent custodian. The policyholder can surrender (reimburse) totally or partially the policy at any time and beneficiaries can be changed at any point by the policyholder (if they are not appointed on an irrevocable basis).
By using a registered insurance adviser in Portugal. deVere Portugal can offer financial planning solutions with Portuguese compliant life assurance solutions that avails to favourable tax treatment in Portugal and at the same time allows for efficient estate planning.
The Portuguese single premium solutions we can provide advice on offer:
- Tax deferral
- Preferential tax regime on surrender as most policies fall under ICAE (‘instrumentode captação de aforro estruturado’) in Portugal. Income from an ICAE is subject to Personal Income Tax (‘PIT’) but taxation is postponed until partial or total surrender.
- No inheritance tax/wealth tax
- Portability
- Ability to protect wealth and pass assets to beneficiaries.