Hi

I recently had a consultation with one of those "indepedent financial advisors" and signed up for an insurance based 3rd pillar pension.

The policy was sent to me around 1 month ago, and the insurance started on 1st Dec. I was about to transfer the premium today, then I thought to check the policy again to make sure all is good. to my superise, I found out the insurance has a very low surrender value if I leave switzerland in the next 2 to 3 years. and wonit break even after 6 to 7. The financial advisor gave me a graph of surrender values. and I specificed ask him to get a policy so I can get it out in the next few years.

After reading similar posts on the forum. I felt I fell into this misselling trap.

My questions.

1) I am going to ring the insurance company to cancel policy, but as it already passed its start date, and policy states it has to be with them for 1 year to cancel, what is my right? as I have to emphsis I have been missold. is there any ombersman that could resolve this differences if they will not cancel it without penalty?

2) I do not want to paying the premium, as the surrender value for year 1 and 2 are nearly zero. if I do not pay, they will refer me to offical debt office. what would happen if I started a complain with ombersman, (how not to receive a non payment strike).

I know I messed it up for not checking the policy early, so please kindly not to lectured me not reading the small print etc. (It never came to my mind there are products with near zero surrender value). useful advice is much appreciated.

It sounds to me that you signed a contract without checking it's contents... not the same thing!

Any insurance product that needs to be 'sold' will have low return if cashed in early, often the first 2 years premiums will be used to pay the advisor & his boss.

Here is the update, I called the insurance company. (One of the most well known one), they agreed it is misselling and agreed to cancel.

so, to whoever taking out a new pension, unless you are going to stay here forever, don't take out an insurance based contract with any IFA, and check the surrender values!!!

At least give us a clue as to who it was?
Da Beers? Pie Peeled?? Lard Ion? or another?

Who wouldn't do this anyway. Insurance anywhere in the world is the same, you always check anything like this before signing the contract.