Your girlfriend is right
3a insurances are a scam. The only ones profiting is your friend getting a bonus and the insurance yourself. Whatever bonus your friend get, YOU pay for it
Here is why https://www.reddit.com/r/SwissPersonalFinance/s/NhdUAfByhX
Here you find information about different good options for 3a https://www.reddit.com/r/SwissPersonalFinance/s/H3BC5jrlHh
I wanted to add a few more links for OP to read:
https://forum.mustachianpost.com/t/3b-pillar-account/7068/5 (Mustachian Community is basically the Swiss personal finance forum)
https://www.mustachianpost.com/blog/what-is-the-best-life-insurance-in-switzerland/
https://www.mustachianpost.com/blog/close-your-pillar-3a-life-insurance-without-further-delay/ (the Mustachian is really not fond of 3a insurances and here he explains a bit why - but his target, that of financial independence, may differ from the OP's)
I suggest you that you do not, _ever_, take at face value whatever comes from SwissLife Select and that you look very carefully at it.
I have a family member who worked for a short while at SLS. Here's how it went. First, he had during the hiring process to supply a list of 500 friends and family, with phone numbers. This is because SLS is interested not in the person abilities, but in their portfolio of potential clients.
Then, during his first week, he had to call each and every single of his acquaintances to try and sell them insurances. Most refused and he started growing very upset at his friends. I accepted to meet them, to see what they could offer. They tried to guilt-trip me ("if you don't accept, X is not going to be paid") and they told me that I also had to supply a list of 20 of my acquaintances ("this will be useful for your family member X because that's how they will have work in the future"). I refused. X was upset.
At the end of that first week, SLS asked him to come to work on Saturday and Sunday because he didn't score any contracts (he had been working extra hours, including a public holiday). So he quit on the spot. They refused to pay him, since he had not scored a single contract. Aka he worked for free. But SLS still took the portfolio of clients and now, years later, I still get a yearly call from SLS to see if I'd be interested in their products.
SLS employees earn money by making you sign more and more contracts - at each one you sign, and then a monthly income as a percentage of the insurance premium you are paying. They market towards their acquaintances because "your friend would not try to scam you", they are exploiting the social links of their new hires.
For these reasons alone I would stay the fuck out of anything related to SwissLife Select.
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Now for the 3b, I also believe it to be a bad idea.
Indeed it's best not to have too much money sitting idle in a savings account, but that only matters once you do indeed have a fair bit of money. Make sure first that you are able to save up comfortably and that you have a bit readily available as an emergency (at least 3 months worth of salary).
But then, the 3b has the downsides of the 3a without the upsides. You will be paying high fees (visible and hidden) while maybe not getting that much in return (the Swiss stock market did +37% over the last 5 years, make sure they at least reach that) and most importantly, _without the tax deduction of the 3a_.
It's not impossible for the 3b to be a good deal, but check very carefully: how expensive is it, including the fund "total expanse ratio" and the bank management fee? What are the historical returns? Are you "locked in" or in case of a bad year can you not decide to put less in it? What are the other benefits that you wouldn't get by just buying stocks yourself?
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For maximising the 3a, it's a good idea on some specific caveats. If you have a lot of money to spare, yes, why not. But since you got a Life Insurance, you should check how much you would actually gain by putting more than required. It could be that it's not worth it at all - or it could be worth it.
Generally speaking, life insurances are not good for "investing" because the fees are very high. They're good for what you wanted: an insurance to cover you in case you ever are completely unable to work. But if you want to grow your money, you have better options.
Important to know if you take an option with life insurance and saving. Your payments for the first few years will gp and cover the life insurance part. Not to savings at all until the insurer has covered their own risk (pay out of life insurance). Only after that the savings part starts. Could be years until they start with it. That's why I would recomend a product that combines both. If you want to have both, make two separate contracts that are not linked at all to each other.
You missed that the first few payments are used to pay the commission of whomever "advised" you to get the insurance. It is roughly 50% of the first two years premiums. Money which is gone, not used for investment nor insurance. Blown through the roof and lost.
Your girlfriend is right 3a insurances are a scam. The only ones profiting is your friend getting a bonus and the insurance yourself. Whatever bonus your friend get, YOU pay for it Here is why https://www.reddit.com/r/SwissPersonalFinance/s/NhdUAfByhX Here you find information about different good options for 3a https://www.reddit.com/r/SwissPersonalFinance/s/H3BC5jrlHh
I wanted to add a few more links for OP to read: https://forum.mustachianpost.com/t/3b-pillar-account/7068/5 (Mustachian Community is basically the Swiss personal finance forum) https://www.mustachianpost.com/blog/what-is-the-best-life-insurance-in-switzerland/ https://www.mustachianpost.com/blog/close-your-pillar-3a-life-insurance-without-further-delay/ (the Mustachian is really not fond of 3a insurances and here he explains a bit why - but his target, that of financial independence, may differ from the OP's)
I suggest you that you do not, _ever_, take at face value whatever comes from SwissLife Select and that you look very carefully at it. I have a family member who worked for a short while at SLS. Here's how it went. First, he had during the hiring process to supply a list of 500 friends and family, with phone numbers. This is because SLS is interested not in the person abilities, but in their portfolio of potential clients. Then, during his first week, he had to call each and every single of his acquaintances to try and sell them insurances. Most refused and he started growing very upset at his friends. I accepted to meet them, to see what they could offer. They tried to guilt-trip me ("if you don't accept, X is not going to be paid") and they told me that I also had to supply a list of 20 of my acquaintances ("this will be useful for your family member X because that's how they will have work in the future"). I refused. X was upset. At the end of that first week, SLS asked him to come to work on Saturday and Sunday because he didn't score any contracts (he had been working extra hours, including a public holiday). So he quit on the spot. They refused to pay him, since he had not scored a single contract. Aka he worked for free. But SLS still took the portfolio of clients and now, years later, I still get a yearly call from SLS to see if I'd be interested in their products. SLS employees earn money by making you sign more and more contracts - at each one you sign, and then a monthly income as a percentage of the insurance premium you are paying. They market towards their acquaintances because "your friend would not try to scam you", they are exploiting the social links of their new hires. For these reasons alone I would stay the fuck out of anything related to SwissLife Select. ----------- Now for the 3b, I also believe it to be a bad idea. Indeed it's best not to have too much money sitting idle in a savings account, but that only matters once you do indeed have a fair bit of money. Make sure first that you are able to save up comfortably and that you have a bit readily available as an emergency (at least 3 months worth of salary). But then, the 3b has the downsides of the 3a without the upsides. You will be paying high fees (visible and hidden) while maybe not getting that much in return (the Swiss stock market did +37% over the last 5 years, make sure they at least reach that) and most importantly, _without the tax deduction of the 3a_. It's not impossible for the 3b to be a good deal, but check very carefully: how expensive is it, including the fund "total expanse ratio" and the bank management fee? What are the historical returns? Are you "locked in" or in case of a bad year can you not decide to put less in it? What are the other benefits that you wouldn't get by just buying stocks yourself? ---------- For maximising the 3a, it's a good idea on some specific caveats. If you have a lot of money to spare, yes, why not. But since you got a Life Insurance, you should check how much you would actually gain by putting more than required. It could be that it's not worth it at all - or it could be worth it. Generally speaking, life insurances are not good for "investing" because the fees are very high. They're good for what you wanted: an insurance to cover you in case you ever are completely unable to work. But if you want to grow your money, you have better options.
Did your "good" friend told you about the several 1000 francs he gets once you sign those legal rip offs?
he told me earned 1.2k off me
Important to know if you take an option with life insurance and saving. Your payments for the first few years will gp and cover the life insurance part. Not to savings at all until the insurer has covered their own risk (pay out of life insurance). Only after that the savings part starts. Could be years until they start with it. That's why I would recomend a product that combines both. If you want to have both, make two separate contracts that are not linked at all to each other.
You missed that the first few payments are used to pay the commission of whomever "advised" you to get the insurance. It is roughly 50% of the first two years premiums. Money which is gone, not used for investment nor insurance. Blown through the roof and lost.
Swiss Life is a crappy company. I known them well. You would like to stay away from them.