Company discount of 20% vs Viac

Banks, Insurances & Third Pillar
30

So even if…

  • the employer pays 20% of the entire insurance premiums, including savings part
  • and these 20% are applicable to unlimited amounts (often these employee discounts aren’t)
  • and the “discount” is tax-free
  • and your girlfriend stays with her employer over the full 10 years
  • and equity markets have a bad/negative performance over the course of these 10 years*
  • so your girlfriend actually gets to benefit from the guaranteed surrender value
  • and we have thus ruled out the “many unknown variables” (in reality, we probably haven’t)

…it seems to work out roughly like this:

80% your girlfriend’s contribution
+ 20% employer
= 100% of the premiums
of which
90% goes to savings and investments
of which
100% * 90% is guaranteed after 10 years
less
80% your girlfriends own contributions
that seems to make for a “risk-free”** return of (I’m not going to bother about discounting for interest)

roughly 1% annualised over the period of 10 years.
Colour me impressed!

* if equity markets have higher than 1% annualised returns, or say greater than 1.5%, to account for fees in competing products - which they’ve historically had, over most 10-year periods - she’d be stuck with a sub-par investment.

** Mobiliar or not, it’s hardly risk-free

4 Likes
31

Fully, 100% agreeing with @San_Francisco …i trust their math better than my own. :grin:

Quite simply: this offer seems way more complicated than it needs to be …I’d be surprised that the 20% is not taxed like @xorfish mentioned (if its not now, could be in the future).

This whole thing sounds like a headache waiting for its cousin migraine. But doesn’t sound like anyone is convincing you, so let us know :wink:

EDIT: Does this company have a pension? Curious to know why they wouldn’t just give you more a % in their own managed funds if they are giving an advantage…seems weird to me…or maybe they don’t have a pension and this is them trying to compensate?

2 Likes
32

That’s the point I do not have any TER but I do have lower returns in comparison of other pillar 3.

33

Does you girlfriend get the discount only for this product or for any product she chooses?

Because if she gets 20% discount also for the MobiFonds Select 90 (MobiFonds: Anlagefonds für Ihre Sparziele | die Mobiliar) or some other product that invests in the market and offers some transparency it could be that you beat the market even if you have to pay something for some insurance coverage.

1 Like