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.
Guarantee: 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 term / less short-term saving: Insurance solutions are geared towards 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.
CostsYes, insurance solutions also have administrative costs that have to be amortized – the majority 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 payment of periodic premiums for insurance policies must be be adhered to. However, some companies also offer the option of taking a premium break.
Protection against further 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 if the premium is not paid.
No further disadvantages
Higher savings capital through discipline: The premium amount of a life insurance policy can be defined when the policy is taken out and in many situations adjusted during the term of the contract. 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: With insurance solutions, guaranteed interest is paid 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: There is no periodic payment obligation with a bank – you can pay in as often and in the amount of your choice and open flexible accounts and custody accounts.
Poorer discipline: Since there is no “compulsion” to save, one is acc. studies less motivated and saves correspondingly less than if you have a consistent savings plan with periodic premiums like insurance.
Short-term savings possible: As you can pay in as much and as often as you like, 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 impact of inflation limits your savings.
No further advantages
Interruption of premium payments in the event of disability: With an insurance solution, savings are automatically continued by the insurance company itself in the event of disability. 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 benefit cannot be insured with a bank. A 3a Bank account is exclusively about saving.
