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Old 24.11.2022, 09:45
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Re: Mortgage, life insurance vs 3a

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Hello all,
I would like to have some advice and opinions from people who had experience or heared about the bellow topic:
I am thinking to buy a house through a mortgage by pledge of my pension fund.
The bank told me the bellow:

CHF 10600 repayment per year, directly (mortgage decreases year after year) OR directly and indirectly through 3a accounts / policies (7000 p.a, from 2023 on) 7k + 3.6k)

In that case pledge of my pension fund needed

I would have to take out a life term insurance policy to cover the amounts that are pledged from my mortgage.

Alternative: If instead of make the indirect amortization through a 3a account I do it through a 3a policy, it is almost sure that the insurance sum in the event of death will be high enough to cover the amounts pledged from my pension fund. If I choose this option I would then need to see the quotes that the insurance company would send to me.

My question is wich one is better to choose?
Any similar experience from some of you , or please share some knowledge.
Thanks
Going for the 3a proposal rather than direct repayments should save you some tax. I doubt the bank would take the 3a each year, and you would be expected to pay it in once the mortgage matures. Often the 3a account would be with the bank lending you the mortgage anyway.

I would go for the 3a account rather than 3a insurance policy option. These are normally locked in until retirement and expensive to get out of. One presumes you will have amortised enough on the house before retirement so will want the freedom to choose what to do with your 3rd pillar after this rather than being stuck with an insurance policy.
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