In case of death of the insured person while the contract is in force, the company Ocidental Vida will pay (within a maximum of 20 business days counting from the reception of the documents necessary for that purpose) the amount of the correspondent Account Units, estimated in accordance with the provisions of Article 11 of the General Conditions of the policy.

While the contract is in effect, extraordinary premium deliveries shall be permitted and the insurance company reserves the right to, at any moment, suspend the acceptance of new extraordinary premiums.

The premiums and the legal charges are due in advance.

The delay in the payment of the premium, the partial redemptions or changes to the charges to be paid by the policyholder, if permitted by law, will automatically originate a change in the value of the Account Units.

In life: the insured person.

In case of death: without prejudice to the observation of the law, the insured person shall choose its beneficiaries.

If no beneficiaries are named and if the author of the succession is the insured person, the surviving spouse or other legal heirs, regardless of the couple's marital regime, may request the full return of the savings plan, without prejudice to the observation of the law. When the author of the succession is the spouse of the insured person and, due to the couple's property regime, the PPR savings are considered common property, the surviving spouse or the other heirs may demand the reimbursement of the part owned by the deceased.

Repayment in accordance with the law: when the Customer complies with the conditions legally foreseen for the redemption of a PPR policy, 3 redemption options emerge:

Reimbursement made outside the conditions foreseen by law, under the circumstances foreseen in the Tax Benefits Statute:

"Life Cycle” rationale: if the partial reimbursement occurs, the amount requested will be proportionally withdrawn from each one of the Investment Strategies.

“Free Choice” rationale: if the partial reimbursement occurs, the amount requested will, by default, be withdrawn from each one of the Investment Strategies in a proportional manner. However, the Customer will have the possibility of choosing from which Investment Strategy he/she intends to withdraw the partial reimbursement.

The amounts insured may be reimbursed in case of:

1. retirement due to old age of the insured person;
2. long term unemployment of the insured person or of any member of his/her household;
3. permanent disability for work of the of the insured person or of any member of his/her household, regardless of the cause;
4. serious illness of the insured person or of any member of his/her household;
5. the insured person turning 60 years old;
6. payment of credits guaranteed by mortgage on the real estate property used as the insured person's own and permanent home.
7. exceptional reimbursement under Article 6 of Law no. 19/2022:
   • the value of retirement savings plans (PPR), education savings plans (PPE) and retirement/education savings plans (PPR/E) may still be reimbursed up to the monthly limit of the IAS by the participants of these plans, until December 31, 2023.
   • as well as for the payment of installments of credit contracts secured by mortgage on property intended for the participant's own and permanent residence, installments of credit for the construction or improvement of property for one's own and permanent residence and deliveries to housing cooperatives in permanent housing solutions, until December 31, 2023.

Notwithstanding the above, when, by virtue of the couple's property system, the PPR is a common asset, for the reimbursement under paragraphs a) and e), the personal situation of any of the spouses will be relevant, regardless of the Insured Person.

The reimbursement requested under sub-paragraphs a), e) and f) can only be made for savings delivered at least five years prior, counting from the respective delivery dates.

Yet, five years after the date of the first savings amount delivered, the Insured Person may demand the reimbursement of the amount of the policy under sub-paragraphs a), e) and f) if the amount saved during the first half of the duration of the policy corresponds to at least 35% of the total amount saved.

Except for the situations listed above, the reimbursement may be requested at any moment under the terms of the policy and subject to the consequences set forth by the applicable Tax Law.

In case of death, the following rules shall apply:

The tax law described is the one in effect at the time this document was made and the insurance company shall bear no burden or encumbrance if such law is changed.

20% of the amounts delivered for PPR (retirement savings plan) are eligible for income tax deductions, per taxpayer, with the following limits (depending on the age of the taxpayer, as of 1 January of the year the amount is invested):

• €400.00 in case of taxpayers aged under 35 (minimum investment of €2,000.00, per taxpayer);
• €350.00 in case of taxpayers aged between 35 and 50 (minimum investment of €1,750.00 per taxpayer);
• €300.00 in case of taxpayers aged over 50 (minimum investment of €1,500.00 per taxpayer).

The sum of the majority of tax deductions (including tax benefits)¹ may not, however, exceed, per household, the limits set out in the following table:

1 - Are not subject to these limits, deductions from tax relating to: (i) to the dependents of the household and to the familiy ascendants who live in the same dwelling as the taxpayer, (ii) general family expenses, (iii) to people with disabilities, (iv) to international double taxation and v) to the Additional to the Municipal Property Tax.
2 - In households with three or more dependents, the limits are increased by 5% for each dependent or civil sponsor who is not a taxpayer of the IRS.

The enjoyment of the benefit is ineffective, and the deducted amounts, increased by 10% for each year or fraction that have elapsed since the exercise of the right to deduction, must be added to the IRS collection of the year in which the payment occurs, if the participants are attributed any income or reimbursement is granted. The exceptions to this limitation to the consolidation of the tax benefit are in cases of death of the subscriber or, in the situations provided for by law, when at least five years have elapsed from the respective delivery.

The amounts saved by the taxpayers after they retire cannot be reported for purposes of tax benefits.

The taxation of the income generated by a PPR depends on the way the reimbursement is made:

When the reimbursement is made due to a situation not foreseen in article 4 (1 to 4) of Decree-Law 158/2002, of  July 2nd, the taxable income is composed of the difference between the amount reimbursed and the correspondent deliveries, being taxed by withholding at source a rate of 21.5%. If the amounts deposited during the 1st half of the duration of the contract represent at least 35% of the total amount invested:

• and the redemption is made after 8 years of duration of the policy, only two fifths of the income shall be taxed, corresponding to an effective rate of 8.6%;
• and the reimbursement is made between the 5th and 8th year of the duration of the policy, only four fifths of the income shall be taxed, corresponding to a withholding tax rate of 17.2%.
• as a regular payment: if the contract establishes the payment of regular and periodical amounts, the tax regime applied will be the one corresponding to Category H of the Income Tax (pensions), including the rules on withholding tax.

If the contract establishes the payment of amounts due to situations not comprised within the ones foreseen in article 4 (1 to 4) of Decree-Law nr. 158/2002 of July 2nd, the reimbursement is taxed in accordance with the rules described in the previous paragraph.

Stamp Duty will not be due in case the amounts invested in retirement savings funds are reimbursed on account of death.

Insurance intermediary: Banco Comercial Português, S.A. - Registered Office: Praça D. João I, nº 28, 4000-295 Porto – Share Capital 4,725,000,000.00 Euros – Single registration and TIN 501525882. Insurance agent, registered under nr. 419527602, with the Insurance and Pension Funds Supervision Authority - Registration Date: 21/01/2019. Authorization for the brokerage distribution of the life and non-life insurance. For information and further registration details, please consult: www.asf.com.pt. The Insurance Intermediary is not authorized to sign insurance contracts on behalf of the Insurer or receive any insurance premiums payable to the Insurer. The Insurance Intermediary does not assume liability regarding any risks covered by the insurance contract, which shall be fully assumed by the Insurer.

 

Insurance Companies

 

Life Protection:
Ocidental - Companhia Portuguesa de Seguros de Vida, Public limited company, with head office at Praça Príncipe Perfeito n.º 2, 1990-278 Lisbon. Legal Person No. 501836926. Lisbon Trade Register. Share Capital of 22.375.000 Euros. Registration ASF 1024, www.asf.com.pt.

Non-Life Risk Insurance:
Ageas Portugal - Companhia de Seguros, Public limited company, with head office at Praça Príncipe Perfeito n.º 2, 1990-278 Lisboa. Legal Person No. 503454109. Porto Trade Register. Share Capital of 7.500.000 Euros. Registration ASF 1129, www.asf.com.pt.