Cancel life insurance now and invest?

Hi !

I know that market timing is not the favorite subject in this forum :slight_smile: but I have the following opportunities :

I signed a (f***) life insurance contract linked to my 3rd pillar in 2013.

Keys numbers :

  • I already paid 7 * 4000 = CHF 28’000

End of february, the insurance wrote me following :

  • Funds from the “rĂ©serve mathĂ©matique pour la garantie” : CHF 20’742
  • Funds from the exceeding fees invested in funds : CHF 1’439

Only the CHF 1’439 are subject to market fluctuations (which of course has crashed since february)

Loss on this policy : 28’000 - 20’742 - 1439 = 5’819 (certainly a little bit higher since market crash).

My question is the following :

  1. Should I cancel this policy as of end of april 2020 and transfer this money in my VIAC 3rd pillar ?

  2. Take a death insurance not linked to my 3rd pillar (I have 2 little kids). Generali for example offer for ~250 CHF premium per year a constant insured capital of CHF 200’000 for 20 years.

Thank you for your help and advices !!

  1. Yes! You will make up for these 5.8k in no time.

  2. Check out SwissLife.

Hi there

I am in a similar situation as I have a life insurance with a Swiss insurance company where I do pay yearly 4000 CHF and then complete 2800 CHF to VIAC (to max out the yearly 3a contribution).

How can you “transfer” the money from your canceled life insurance policy to VIAC without triggering taxes? Is that even possible?

Thanks & cheers

I imagine if you transfer money on a 3rd pillar account no taxes are triggered… no ?

no taxes triggered if you transfer

Ok, I think that in this case life insurance money is tax free.

But I still don’t understand how the transfer technically would work. How/why VIAC would accept suddenly an important sum of money? I probably would need sort of proof that this money is part of my accumulated 3a pillar over the past years!?

your existing provider will provide this you need to send a registered letter with your new p3a details to make the transfer.

In VIAC Portal you can generate a transfer order, then send everything to them (with life insurance resignation letter). They will ask for the transfer for you.

1 Like

Big news for me : I cancelled this life contract !

I just received the confirmation from Zurich. Amount to be received on VIAC : CHF 22k
Amount paid for this **** : CHF 28’000
Effective lost : CHF 6’000 - risk premium of CHF 1’400 (~200 CHF per year) = CHF 4’600

Next step : invest in shares with VIAC !

By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur