Santander's PIAS range

What is Santander PIAS Insurance?

Santander PIAS Insurance is a range of products that allows you to start saving immediately, through regular or one-off contributions. You can transform these accumulated savings into recurring income through a guaranteed lifetime annuity. In addition, you enjoy tax exemption on all income generated, provided that the applicable legal requirements are met¹.

The Santander PIAS range is a set of four Individual Systematic Savings Plan (PIAS) products in the Policyholder risk mode. This means that you will be able to save regularly with liquidity from the outset and with a life cycle investment strategy in which the product itself will reduce its exposure to equities as it approaches the defined time horizon.

How do Santander's Individual Systematic Savings Plans work?

Life cycle strategy

The investment in equities will be in accordance with your time horizon.

Each of the PIAS has a time horizon with an initial equity exposure, which is reduced to a maximum of 30% when the specified time horizon is reached, maintaining this exposure until the insurance is surrendered in the form of equity or capital.

These insurance policies do not expire. The time horizon set forth in each refers to the date on which the insurance policy will have its lowest exposure to risk.

Main risks

This is an Insurance Policy in which the Policyholder assumes the investment risk. Therefore, the Insurance Company does not under any circumstances guarantee recovery through the use of its own assets of the amount invested by the former, or any profitability.

Tax treatment of the Santander PIAS Insurance Range

The income obtained will be taxed as income from movable capital. However, if the insurance is taken out in the form of life annuity and the requirements are met, the income generated will be tax exempt.

At present, the legal requirements for the income generated during the whole lifetime of the insurance to be fully tax exempt are as follows:

Provided you meet the above requirements and start collecting your life annuity, you will be taxed on a portion of your annuity depending on your age and the applicable tax law.

FAQs

• What is an Individual Systematic Savings Plan (PIAS) insurance policy?
  

• PIAS stands for Individual Systematic Savings Plan. It is an individual life insurance savings policy designed to accumulate long-term savings through regular or extraordinary contributions, up to the annual limit of €8,000 established by law. It is designed for customers who want a savings plan to complement their retirement.
  
  Santander Seguros offers the Santander PIAS range. This is a set of four PIAS products, in the Policyholder risk mode, with a life-cycle investment strategy where the product itself reduces its exposure to equities as it approaches the defined time horizon.

• What is the insurance policy's maturity date?
  

• The insurance term is for life, meaning you can maintain your policy until your death, at which point your designated beneficiaries will receive the accumulated savings plus additional capital. However, you can surrender your insurance policy at any time free of charge.

• What are the death benefits?
  

• This is the amount, known from the moment the policy is taken out, that the beneficiaries of your choice will receive in the event of death. These beneficiaries do not necessarily have to be legal heirs, as this benefit is outside the estate. Under this insurance policy, in the event of death of the insured, the designated beneficiaries will receive the accumulated balance plus additional capital, equal to 3% if the insured is under 65 years old, or 1% if the insured is 65 or older.

• Can I surrender my insurance policy before its maturity date?
  

• You may request full or partial surrender of the insurance policy at any time without penalty. The surrender value will be calculated based on the market value as detailed in the policy, so you may receive less than the initial premium invested.

• Can additional one-off contributions be made?
  

• Yes, this insurance policy allows for additional one-off contributions from €1,000 to €8,000, bearing in mind that €8,000 is the maximum annual legal limit for contributions to all PIAS taken out.

• What is the tax treatment?
  

• The earnings generated upon maturity and surrender of the insurance will be taxed as investment income and as part of Personal Income Tax (IRPF). The Insurance Company will apply the applicable withholding taxes in effect at the time. However, if the insurance policy is collected in the form of an insured life annuity and the established requirements are met, the income generated will be tax exempt, keeping in mind that the tax benefits referred to will always depend on the policyholder's personal situation.
  
  In the event of the death of the Insured, payment of the benefit is subject to Inheritance and Gift Tax.

• What regular information will I receive about my product?
  

• You will receive quarterly information regarding the transactions made during the period, as well as updates on the accumulation value of your policy.
  
  You will receive an annual statement of costs and expenses incurred during the calendar year of your policy.
  
  Additionally, Policyholders can find out the value of their policy at any time by visiting their Banco Santander branch. You can also find out this value in your personal banking area, on the Banco Santander website or app.

• What are the risks of these products?
  

• Risk that the assets in which the customer's premium is invested decrease in value due to changes in market conditions; risk that the Insurer may be unable to meet its payment obligations to Policyholders; liquidity risk, i.e. the risk of suspension of the valuation of the account's units; risk of the potential negative materialisation of sustainability factors (known as ESG factors: environmental, social and good governance), which may have a negative impact on the financial performance of the portfolios associated with the insurance product.