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Does ULIPS counted as passive income for D7 visa ?

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Posts: 5
Community Member
Topic starter
(@s-paul)
Active Member
Joined: 4 weeks 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: 5
Community Member
Topic starter
(@s-paul)
Active Member
Joined: 4 weeks ago

Hi All, 

Thanks for the replies, still looking for concrete professional answer regd. ULIPS ; is there anyone among all expats here, who deals in investment / insurance sector ? 

 

kindly Update 

Thanks

Paul 

Reply

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