Review on the 3rd pillar Swiss Life Dynamic Elements 3a or 3b
Type of 3rd pillar:
Fund linked insurance (linked to investment funds) and traditional insurance component. Available as 3rd pillar 3a (DUO), or 3rd pillar 3b (UNO).
Minimum Premium: CHF 150/month
The Swiss Life Dynamic Elements product is, in our opinion, a very attractive product for anyone looking for a higher return, with a relatively low risk (depending on how the product is set up).
Yes, because the product has many aspects to customize based on your profile and your needs, for example:
You can choose from 4 investment strategies: Income, balanced, growth and equity.
Elements to reduce investment risk can be included, such as outperformance protection and maturity management. (Consult us to better understand these mechanisms)
In addition, a guaranteed death benefit and disability coverage can be included.
How does it work?
The functioning of this product revolves around two fundamental components: the security element and the return element.
The Security element is, in practice, a classic insurance component, remunerated with an interest rate which, for 2021, is set at 2%. This interest rate is set by Swiss Life, and can even be negative, up to -2%.
The Return element, on the other hand, is composed of a portfolio of investment funds and therefore is not remunerated with an interest rate, but with the performance of the funds themselves.
Depending on the investment strategy chosen, and the type of premium fraction (which can be "dynamic" or "constant"), part of the savings premium you pay each month will go to the security element and the rest to yield element. For example, if you choose the "balanced" strategy, this distribution will be 50% -50% between the two elements.
Upon expiry of the contract, Swiss Life will liquidate the security and return assets you have accumulated over the years.
Attention: the final capital is not guaranteed, and therefore may be higher or lower than what you have paid over the years.
Given all the variables and possibilities that this product offers, to have a third pillar that fully satisfies you, in-depth and competent advice is essential.
But how to recognize a good advice?
Here are some points to watch out for:
1) Is the person in front of you registered to FINMA intermediaries register?
2) Does the intermediary know how to explain in detail the composition of investment funds and how its work?
3) Have you chosen the investment strategy together?
4) Has it been explained to you could have a positive return, but also a negative one?
5) Was the offer made taking into consideration your current coverage of the 1st and 2nd pillar?
6) Did the intermediary leave you the complete offer and time to evaluate it?
If you need competent advice, contact us by clicking here
- The product offers many possibilities, allowing you to customize it to suit you.
- Even if the product does not have a guaranteed capital, offers several mechanisms to reduce the investment risk.
- Possibility of including insurance coverage in case of disability and death.
- The product, by its very nature, does not provide a guaranteed capital.
In our opinion, the 3rd pillar Swiss Life Dynamic Elements UNO and DUO is a good product for those who are looking for a higher return opportunity and are willing to take a few more risks.
It is also suitable, for example, for those who already have a third pillar (perhaps with guaranteed benefits), and want to diversify the investment.
Finally, it must be said that, as with all pension and investment products, your satisfaction will depend, above all, on the quality of the advice.