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Does ULIPS counted as passive income for D7 visa ?

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Posts: 6
Community Member
Topic starter
(@s-paul)
Active Member
Joined: 1 month ago

Hi All, 

At last... feels good to join expatsportugal. heard a lot on youtube n webinars, great conversations. 

I have a query , does ULIPS (Unit Linked Insurance Plan (ULIP) ) count as PASSIVE INCOME / investment for D7 visa. ULIPs have a lock-in period of 5 years and managed by dedicated fund managers only. 

i have competed 5 years lock-in period and now have option to choose these ulip investments as monthly income / pension every month for life in my account or can withdraw it all at once. will these count as passive income or investment ; as investor plays no role in managing ulips

kindly update. 

Thanks

Paul

 

****( what are Ulips)

(ULIPS: Unit Linked Insurance Plan (ULIP) is a mix of insurance along with investment. From a ULIP, the goal is to provide wealth creation along with life cover where the insurance company puts a portion of your investment towards life insurance and rest into a fund that is based on equity or debt or both and matches with your long-term goals. These goals could be retirement planning, children’s education or another important event you may wish to save for. )

How does ULIP work?

When you make an investment in ULIP, the insurance company invests part of the premium in shares/bonds etc., and the balance amount is utilized in providing an insurance cover. There are fund managers in the insurance companies who manage the investments and therefore the investor is spared the hassle of tracking the investments.

Funds that ULIPs invest in

  i. Equity Funds: Where the premium paid is invested in the equity market and thereby is subject to higher risk.

ii. Balanced funds: Where the premium paid is balanced between the debt and the equity market to minimise the risk for investors.

iii. Debt Funds: Where the premium is invested in debt instruments which carry a lower risk but in turn also offer a lower return.

 End use of Funds

  i. Retirement Planning: For those of you who plan to invest for the retirement days while you are still employed.

ii. Child Education:You can iYou can invest with a long-term goal of saving to fund your child’s education or save for some unforeseen circumstances.

iii. Wealth Creation:You can make investments to build a heavy corpus that you can utilize for a future financial goal

Death benefit to Policy Holders

i. Type I ULIP: This pays higher of the assured sum value or the fund value to the nominee in case of death of the policyholder.

ii. Type II ULIP: This pays the assured sum value, plus the fund value to the nominee in case of the death of the policyholder.

 

  

8 Replies

Posts: 442
Premium Member
(@peggyl)
Reputable Member
Joined: 11 months ago

Hi Paul,

I'm American so this is a new plan for me. It sounds interesting. This quote IS from a group, self labeled, D7 VISA specialists.

In order to qualify for the D7 Visa, applicants must be able to prove earning sufficient passive income to support themselves in Portugal without the reliance on salaried income.

Sources of income that qualify towards meeting this requirement include stable rental income from movable or immovable assets, monthly pension payouts, royalties and dividends, provided that you are not actively involved in the running of the company from which these payments are received.

While there is no stated minimum personal net worth requirement for the program, the Portuguese immigration authorities enjoy a large amount of discretion in terms of D7 Visa approvals, and you may be required to submit proof of significant, available savings, in addition to the passive income requirement.

While the minimum passive income thresholds for the program are discussed in more detail below, individual applicants are expected to earn at least €635 per month (€7,620 per year). It is, however, highly advisable to treat this as the absolute minimum requirement; the higher your passive income earnings, the more likely your visa is to be approved.

Article 58 paragraph 1 of Law no. 23/2007 of July 4 and article 24 d) of Regulatory Decree no. 84/2007 of November 5     .............."provided that they can prove to have sufficient income to provide them with means of livelihood. This income can come from pensions, real estate rentals, investments, among others."

I hope this helps. Since I am not familiar with the program you speak of, I am hoping you will be able to decide if your program fits the requirement.

@peggyL

 

 

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Posts: 4
Premium Member
(@ellieb)
New Member
Joined: 6 months ago

Hello Paul,

The ULIPS seems to have common features of an annuity.

Once could describe an annuity as a self funded pension, and am therefore interested in a final disposition on the reply to your question.  we plan to use an annuity to fund our retirement..and hope that will be in Portugal.

Following the replies..... 

Ellie B

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Posts: 56
Premium Member
(@jgibson)
Trusted Member
Joined: 4 months ago

It has been recommended with my wife and I  to put in two years of the minimum required income into a Portuguese bank account due to the fact the  new visa would be valid for two years. The company that were using to help us navigate and obtain our D7 has a pretty high success rate so we’re following there recommendations we are using  income from our rental properties in the states as our source of passive income.

you can always consult with an expert who understands what passive income will be excepted

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3 Replies
Community Member
(@s-paul)
Joined: 1 month ago

Active Member
Posts: 6

hi there, 

is it possible for you to share the company name you dealing with...i can ask my queries with em, if it suits...

 

thanks

Paul

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Premium Member
(@jgibson)
Joined: 4 months ago

Trusted Member
Posts: 56

@s-paul

Ei! Assessoria Migratória

have patience but they are very thorough and professional

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Community Member
(@s-paul)
Joined: 1 month ago

Active Member
Posts: 6

great , wat a co incidence,  i saw her webinar couple of days ago and already handed my queries to her. so i m in safe hands, it seems. 

 

thanks

Paul 

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Posts: 6
Community Member
Topic starter
(@s-paul)
Active Member
Joined: 1 month ago

Hi All, 

Really appreciate every single reply. Thank u all for your time.

Thanks

Paul 

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