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Old 16.05.2018, 13:55
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Pillar 3A insurance - how to cancel without losing everything.

Hello,

I signed for a Pillar 3A insurance two years ago (01 Dec 2016) from a company which has the 2nd part of its name as a city in the north of Switzerland.


Recently, after having thought a great deal about it, I have come to realise that I totally misunderstood what it was. I now regret the fact that I signed up for the insurance and would like, if possible, to either cancel it altogether or change it to another company.



  • The premium paying contract runs for 27 years.
  • First premium paid on 01 Dec 2016.
  • Last premium payment on 01 Dec 2042
  • Annual premium amount: 6,768 CHF
  • Total premium amount paid so far: 13,536 CHF


I did not understand that I would get so little money if I ever want to move abroad or decide to purchase a house here.

I am looking for a way to get rid of it without losing everything. Transferring it, buying it for a lesser price, or anything else.


If anybody has any expertise or previous experience on this matter, I humbly request you to share your knowledge. Thanks very much.


I know that I have made a mistake and any reprimand or harsh words are completely justified.


Thanks for reading,
Las
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Old 16.05.2018, 14:09
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Re: Pillar 3A insurance - how to cancel without losing everything.

You don’t know what you signed and reading your post, neither do I!

Is it a life insurance? You would be able to claim some of the premiums against tax. However, if you opt out now I doubt you will get a penny back. Often your first couple of years go to the salesman as commission.

Nor do I understand why you would like to make another salesman happy...
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Old 16.05.2018, 14:09
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Re: Pillar 3A insurance - how to cancel without losing everything.

i'm still stuck on the city name...
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Old 16.05.2018, 14:27
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Re: Pillar 3A insurance - how to cancel without losing everything.

You have to read the T&C for the different options, sometimes it is better on the long term to stop payments without taking out the money and just let it sit there.

Doing a pay out now will very likely mean most of the money is lost due to the first years often being the most expensive.
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Old 16.05.2018, 14:30
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Re: Pillar 3A insurance - how to cancel without losing everything.

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You don’t know what you signed and reading your post, neither do I!

Is it a life insurance? You would be able to claim some of the premiums against tax. However, if you opt out now I doubt you will get a penny back. Often your first couple of years go to the salesman as commission.

Nor do I understand why you would like to make another salesman happy...
It is a pure endowment insurance (dynamic) plan. The plan is called "protect plan dynamic".

There is a guaranteed benefit on maturity on 01 Dec 2043 (plus bonus depending on market, which I am not considering).

The guaranteed benefit on maturity is lower than the sum of all premiums.

I have claimed the entire premium amount of 6,768 CHF against taxes in 2016 and 2017.

I would like to ease out of this with the least pain possible (if at all). If that means that I need to hold on to the policy for "x" years more, then I am willing to do that.
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Old 16.05.2018, 14:31
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Re: Pillar 3A insurance - how to cancel without losing everything.

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i'm still stuck on the city name...
win ter thur
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Old 16.05.2018, 14:34
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Re: Pillar 3A insurance - how to cancel without losing everything.

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win ter thur
i guess i wasn't too far off with frauenfeld
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Old 16.05.2018, 14:35
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Re: Pillar 3A insurance - how to cancel without losing everything.

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You have to read the T&C for the different options, sometimes it is better on the long term to stop payments without taking out the money and just let it sit there.

Doing a pay out now will very likely mean most of the money is lost due to the first years often being the most expensive.
I would like to stop payments asap, however, I'm afraid that the contract is for 27 years and stopping payments (the next premium payment is due on 01 Dec 2018) would result in contract termination with 0 CHF being given back.

I am not opposed to continuing payments for a few more years if that means that there is a higher chance of eventually getting a chunk of money back on cancellation/surrendering.
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Old 16.05.2018, 14:35
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Re: Pillar 3A insurance - how to cancel without losing everything.

Contact you AXA Winthertur insurance agent and get a table with Rückkaufswert (repurchase value) over the next 10 years assuming 0% interest and you keep paying the maximum of CHF 6'768

Also get the same, if you pay half, a quarter, or nothing each year.
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Old 16.05.2018, 14:53
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Re: Pillar 3A insurance - how to cancel without losing everything.

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Contact you AXA Winthertur insurance agent and get a table with Rückkaufswert (repurchase value) over the next 10 years assuming 0% interest and you keep paying the maximum of CHF 6'768

Also get the same, if you pay half, a quarter, or nothing each year.
Thanks, I already did that this week and requested for a surrender table for each year (assuming termination of contract).

I will also ask for the same with half payment or quarter payment, assuming that no payment is the same as surrender/termination of contract.
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Old 16.05.2018, 15:04
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Re: Pillar 3A insurance - how to cancel without losing everything.

This scares me too I never signed up to 3rd pillar because i thought I'd only stay 2 or 3 years. 5 years later and now having to do 'proper tax' everybody tells me i need a 3rd pillar.

But I really don't want to be tied up like that either..


Nothern town and name of policy noted
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Old 16.05.2018, 15:11
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Re: Pillar 3A insurance - how to cancel without losing everything.

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This scares me too I never signed up to 3rd pillar because i thought I'd only stay 2 or 3 years. 5 years later and now having to do 'proper tax' everybody tells me i need a 3rd pillar.

But I really don't want to be tied up like that either..


Nothern town and name of policy noted
You do not need to buy life insurance, get investment funds?
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Old 16.05.2018, 15:15
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Re: Pillar 3A insurance - how to cancel without losing everything.

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This scares me too I never signed up to 3rd pillar because i thought I'd only stay 2 or 3 years. 5 years later and now having to do 'proper tax' everybody tells me i need a 3rd pillar.

But I really don't want to be tied up like that either..


Nothern town and name of policy noted
If my unfortunate experience is a lesson to anyone, I'm glad.

Yes, please do not sign up to such an insurance contract.

Exiting right now might be painful for me, but I'm willing to take that pain as later on, it will be even more painful.
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Old 16.05.2018, 15:18
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Re: Pillar 3A insurance - how to cancel without losing everything.

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You do not need to buy life insurance, get investment funds?
Yes, this is absolutely what I should have done, in retrospect.

Even here, the universe of available funds is huge and complex.

From the reading that I have done (and I really should have done this before signing on to the insurance plan contract), viac basel seem to be a good choice for a pillar 3a investment fund company.
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Old 16.05.2018, 15:24
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Re: Pillar 3A insurance - how to cancel without losing everything.

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I will also ask for the same with half payment or quarter payment, assuming that no payment is the same as surrender/termination of contract.
No payment could also mean simply pausing and resuming later. Do not know if it possible with your contract. But with a standard pillar 3a savings account this is a viable and very normal option.
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Old 16.05.2018, 15:36
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Re: Pillar 3A insurance - how to cancel without losing everything.

I received the surrender value table from my agent.

I have taken 2 screenshots of the table and embedded them in the page.


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Thanks, I already did that this week and requested for a surrender table for each year (assuming termination of contract).

I will also ask for the same with half payment or quarter payment, assuming that no payment is the same as surrender/termination of contract.
Attached Images
File Type: jpg Surrender_Table_1_jpeg.jpg (154.5 KB, 103 views)
File Type: jpg Surrender_Table_2_jpeg.jpg (59.7 KB, 53 views)
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Old 16.05.2018, 16:25
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Re: Pillar 3A insurance - how to cancel without losing everything.

If it helps in any way, I have attached the relevant pages of the insurance policy.

Many thanks for taking a look.
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File Type: pdf Protect_Plan_Dynamic.pdf (1.70 MB, 37 views)
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Old 16.05.2018, 16:32
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Re: Pillar 3A insurance - how to cancel without losing everything.

Without reading the plan. It looks like your least worst way would have been to exit in 2017. Situation gets worse in 2018, before improving a bit in 2019, before getting steadily worse.

I’ve calculated this by comparing your premiums paid vs the surrender value. It’s going to have cost you over 8k for the insurance over the 3 years to 2019.
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Old 16.05.2018, 16:54
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Re: Pillar 3A insurance - how to cancel without losing everything.

What a stupid plan
What is the benefit of it?
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Old 16.05.2018, 16:57
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Re: Pillar 3A insurance - how to cancel without losing everything.

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What is the benefit of it?
Sales provision for the sales person
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