Review on the 3rd pillar Baloise Safe Plan 100
Type of 3rd pillar:
Life insurance with 100% index participation, available as pillar 3a and 3b.
The third pillar Baloise Safe Plan 100 is, in our opinion, a good product for those looking for safety, combined with a minimum of performance.
The product offers a guaranteed final capital of approx. 75-80% of the total sum of premiums paid (depending on the duration of the contract) and, unlike some products linked to investment funds, the redemption value is guaranteed throughout the duration of the contract.
To achieve a return, Baloise Safe Plan 100 participates to the performance of an index chosen each year by the company, and the performance calculation period runs from 01.04 to 31.03 of the following year.
But the interesting point in this product is that you only participate to the positive trend of the index, and therefore, if one year the index has a negative performance, certainly for that year you will not have a gain, but you will not have a loss either.
Attention: as we already explained, the guaranteed capital is lower than the amount you paid, so the final capital could be higher or lower than the sum of the premiums paid, depending on the performance of the index.
In addition to the aspect of saving for retirement, Baloise Safe Plan 100 allows you to include coverage in the event of disability and death typical of an insurance 3rd pillar, in order to protect your income and your family from future adversities .
Regarding flexibility, it offers, like most products for the third pillar, the possibility of increasing or decreasing the premium, request a pause in the payment of premiums, make additional payments, or the conversion to a paid-up policy.
- Minimum guaranteed capital on maturity.
- Guaranteed surrender value over the entire term.
- Participate only to the positive performance of the index.
- The return expectation is rather low (under current conditions).
To conclude, we can say that Baloise Safe Plan 100 is a product that offers everything that is expected from an insurance third pillar and represents a valid alternative for those looking for a high safety degree, without major performance claims. Of course, as all retirement products, your satisfaction will largely depend on the quality of the advice.
How to recognize a good advice?
Here are some points to watch out for:
1) Is the consultant registered to FINMA intermediaries register?
2) Does the intermediary know how to explain in detail how the product works?
3) Did they offer you alternatives?
4) Has it been explained to you that, in addition to gains, there may also be losses?
5) Was the offer made taking count your current coverage from the first and second pillar?
6) Did the intermediary leave you the complete offer and the time to evaluate it?