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3rd Pillar Life Insurance: combine retirement and protection
Learn how to save for retirement with guarantees and protect your family.
Key Facts
Max contribution 2024CHF 7,056 employed; CHF 35,280 self‑employed
Tax savings20–40% of contribution depending on income/canton
Guaranteed return0.25–1% p.a. + surplus
Risk coverDeath and often disability cover
Withdrawal5 years pre‑retirement, home purchase, emigration
Costs1.5–3% p.a. (higher than pure funds)
What is a 3rd pillar life insurance?
Tax‑favored retirement solution with guarantees and risk cover.
What are the costs?
Typically 1.5–3% p.a.; higher than pure funds due to guarantees and cover.
When does it make sense?
For safety‑oriented savers with family needing risk cover.
Can I cancel?
Possible, but early termination often causes losses; consider premium pause.
What is it? How it works
- Definition, function vs pure funds
- Saving + insurance combination
- Tax treatment overview
Pros and cons
- Guarantees and family cover
- Higher costs vs funds
- Lower expected returns
- Long commitment/less flexibility
Life insurance vs fund solution (3a/3b)
Life insurance
- 2–4% p.a. expected
- Includes risk cover
- Guarantees provided
- Flexibility limited
Fund solution
- 4–7% p.a. expected
- No guarantees, higher risk
- Low costs and high flexibility
- Risk cover separate
Top Providers (CH)
AXA · Zurich · Swiss Life · Helvetia · Generali
Find the optimal 3rd pillar solution
Independent comparison, individual needs analysis, tax optimization included.
Key Takeaways
3rd pillar life insurance combines tax‑advantaged saving with guarantees and risk cover. Max 2024: CHF 7,056 / CHF 35,280. Costs 1.5–3% p.a., less flexible than funds; suitable for safety‑oriented families seeking guarantees and protection.