How to exit my AXA Pillar 3A insurance policy smoothly?

looks like we cannot upload PDF file on mustachianpost? had to convert them into jpg…

Hello,
From what I know, as I was about to subscribe to the very same AXA 3rd pillar life insurance (but finally not, thanks to you guys!), you could try to keep that policy but ask them to reduce the premium value to a minimum, i.e. not close the contract. I don’t know for sure how much of this is true and helpful, but still worth a try. Give them a call.

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@Cortana @xorfish @nugget @pandas @Mr.Paprika @ilvalesco

My policy started 1st Nov 2016, do you think there is a deadline for me to stop and quit my current policy or I can do it at any time? the agent has not given me a precise date as deadline.

Would be grateful if you could help

Hello, I doublechecked MY contract and it is written it is possible to cancel whenever I want. You should check the general terms to be sure.

Options

  1. Keep that contract as a health and 3rd pilar (deductible for the swiss tax). In the future, you can use as a deposit to buy house/flat and you have a life insurance for your family in case of death. An option is to ask to reduce the amount of money you save on that insurance 3rd pilar every year and open a bank 3rd pilar (without life insurance)
  2. Cancel the contract and loose some money because you will get only the surrender value (by contract)

The final decision will depend on some parameters :
https://en.comparis.ch/saeule-3a/vorsorge/analyse/vorsorge-bank-versicherung

@neutralname, any news on your decisions or actions ?

I closed the account last year and lost the 8k CHF… @ilvalesco

Congrats for closing this sh***!

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Congrats!

I still have to make the decision for myself… it’s quite hard ^^’
If I cancel everything, I’ll get nothing cause I only paid for 1 year…

You already lost this money the day you signed the life insurance contract. These are sunk costs, there is nothing you can do that will bring them back.

If it helps to make up your decision:

  • Suppose you stay in this contract until retirement
  • Compute how much money you will have paid into the contract in total, let’s call it A
  • then look at your contract and the contractual value that they expect to pay you at retirement, let’s call it B
  • In 90% of the cases, A >>> B , that is, you put more money in the contract that you will get at the end.
  • Not only are you incurring losses, but you have a huge opportunity cost: compute how much money you will have if instead of paying into the life insurance, you would have put the money into a low cost index ETFs (historical average returns of 6-7%, which are still relevant for a 30 years period). For instance, Mr Paprika figured out here that by paying only 100 CHF per month into his life insurance, he would incurr an opportunity cost of around 100k CHF.

This is not insignificant: either you bite the bullet now and renounce to the money you have put in the contract, or you will later and the costs will be even bigger.

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Look at it in a positive way. You get out after only one year! There are people that got it after 10+ years and lost several 10k in opportunity costs.

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Thanks, I guess I’ll make my calculations tonight I very probably follow your advice! :slight_smile:
I’ll continue to read the forum for whether use viac with an affiliate link, frankly, or finpension…
If you have any idea, feel free to DM me, or tag me in the appropriate post :slight_smile: thanks again for your advice everyone !

Interesting conversation.

I have recently started a family (twins) and was thinking about life insurance.
What I am taking away from here is that, if I really want to get a life insurance, I should buy a separate insurance product and keep my investments separate.

Did I get it right? Is anyone else here a parent or are you all trying to retire by 40?

You can have a 3a insurance with a very low investment part (if any needed), the rest as fee only for the risk. The advantage of such a contract would be that is tax deductible (3a), but you don’t have to pay taxes when the contract ends as you don’t get the fees back (just the small investment part).

(at least it was 15yrs back as I had some 3a life insurance contracts).

Get a 3b life insurance and do the rest with Viac/Frankly/VP.

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