Backstory:
As a naive expat, I somewhat blindly entered a 3a life insurance policy with the company "SwissLife". Over the years I paid into the policy and benefited from the associated tax benefits.
Informing myself:
Through a variety of posts on this subreddit, as well as an excellent overview and explanation on the website "The Poor Swiss", I realized that the 3a life insurance has next to no benefit for the client.
I did my research on the pros and cons and made the decision to get out of the contract. This involved the following "loss" of capital from my SwissLife fund:
Fund value at time of cancellation: 16,439.90
Surrender value of the fund through cancellation: 13,966.90
Total amount lost by terminating the contract: 2,473.00
Contacting SwissLife:
Having armed myself with the information from the above mentioned sources, I called the broker which was assigned to me in the online SwissLife platform (I have never met or heard from this person before). I stated my intentions, my awareness of the loss to be incurred and requested the cancellation documents per mail. As I was very self-assured and confident, stating my intentions clearly, there was no resistance from the broker. The only question was weather I would like some time to think about the cancellation, to which I said no. Thereafter he agreed to send the paperwork to me this week.
Paperwork and fund transfer:
The paperwork, 3 pages, was easy to complete and send back. Included in the documentation was a transfer document from my new 3a provider.
Conclusion:
I hummed and hawed for a long time before deciding to get myself out of the 3a Life Insurance trap. I expected a much more significant loss and much more resistance. As with most things in life, a self-assured and confident approach as well as stating your demands, not asking "if you can", brings results.
I hope this might inspire anyone else in a similar situation to take the initiative to get out of the 3a Life Insurance trap. I will attach some good links below for further reading. I am happy to answer any questions about my experience.
References:
https://thepoorswiss.com/de/was-zu-tun-mit-lebensversicherung-3a/
https://thepoorswiss.com/de/lebensversicherung-dritte-saule/#9-was-ist-stattdessen-zu-tun
by cdnexpat_ch
6 comments
Thank you, it motivates me to do the same.
On my todo list too, similar situation, but with AXA, and probably a larger loss of capital. The fund they picked has been embarassing in terms of performance. At least there’s a minum % granted.
I spoke to the broker too, no resistance, they just said “yes, you can suspend any time you want”. Of course, in the end they have already gained, as you pay the premium first. And as you are still alive they are relieved from the risk. So it has been basically free money for them.
My AXA guy is actually on me trying to get me to open a 3A via them. Should I just keep paying into my UBS third pillar like I have always done?
I don’t think that’s your loss is only this much. Your loss is what you payed into the 3a – Total amount lost by terminating the contract: 2,473.00
Can you calcute how much you payed into the insurance? /Edit Typo
[Frankly](https://www.frankly.ch/en/home.html) is your friend.
0.44% all in fee and pretty decent products. They have a promotion on at the moment.
ZKB is arguably the safest bank in Switzerland which only matters if you keep cash in any case.
Same with postfinance. I was talking about a mortgage and in the he came up again with this 3a insurance bullshit.
Not sure if there is any real benefit for the customer or only when you die.