Surrender values and conversion values in life insurance
If the insurance company has a cooperative structure, they do not have to serve shareholders, which often also reduces investment costs in favor of customers.
Warranty:
Insurance companies offer solutions with a
Guarantee
. Some companies, such as SwissLife, even increase the guarantee during the term by continuously hedging the profits made – so success is guaranteed.
Minimum contract duration / less short-term savings:
Insurance solutions are geared to long-term contracts and corresponding goals. If a contract is terminated and repurchased after just under 3 years, the costs have only just been amortized and the savings results are not yet at the planned level.
Cost
:
Yes, even insurance solutions have administrative costs that need to be amortized – most of them during the first 1-3 years. After that, however, insurance companies have better investment strategies and do not have to recover further costs or make up for any losses. In the long run, insurance companies thus have lower costs than banks.
Less flexibility:
The deposit of periodic premiums must be observed for insurances
be complied with
. However, some companies also offer the option of taking a premium break.
Protection against other risks:
In addition to the savings policy, risks such as a lump sum death benefit – to protect the family; financial consequences of disability – to protect income; and a premium waiver in the event of disability can be insured – so that the policy continues to run automatically, even without paying the premium.
No further disadvantages
Higher savings through discipline:
The amount of the premium for a life insurance policy can be defined when the policy is taken out and, in many situations, adjusted during the term of the policy. Once this is defined and agreed upon, it is to be paid in periodically and regularly (annually or monthly) – this leads to a regular payment and through this corresponding discipline one achieves secure (and more predictable) goals.
No further disadvantages
Higher interest rates in the long term:
Insurance solutions pay guaranteed interest on your savings – not market interest. In addition to this, insurance companies also accumulate surpluses from profits here. This means that in the long term, higher interest rates are achieved and thus better results are achieved.
No further disadvantages
More flexibility:
The periodic payment obligation is not given in a bank – it is possible to pay in as often and in the amount of your choice and to open flexible accounts and deposits.
Worse discipline:
Since there is no “compulsion” to save, one is not obliged to do so pursuant to Art. studies less motivated and saves correspondingly less than if you have a consistent savings plan with periodic premiums like insurance.
Short-term savings possible:
Since you can pay in as much and as often as you wish, a short-term solution is also possible for the duration of the contract.
Less profitable:
Banks and their 3a accounts are based on market interest rates and these are usually below the inflation rate. This means that the influence of inflation limits your savings.
No further advantages
Interruption of premium payment in the event of disability:
With an insurance solution, in the event of disability, savings are automatically continued by the insurance company itself. with a 3a account at the bank, the savings premiums would still have to be paid by the insured person, which is normally difficult in the case of disability.
No further advantages
No risk protection:
The risks of disability and lump-sum death benefits cannot be insured with a bank. A 3a Bank account is exclusively about saving.
