Need advice: Helvetia Performance Plan (3a) Insurance Plan

[Dan M.`]

Hello everyone,


Thank you for your articles. I have really enjoyed reading them and have learned a lot about personal finance and investing in Switzerland.


I started working in Switzerland last year, and through a friend’s recommendation I met with a Swiss Life Select advisor in March 2026. He recommended the Helvetia Performance Plan (Pillar 3a), which started in April 2026.


The annual premium is CHF 3,000 (CHF 250/month), invested in the UBS (CH) Investment Fund – Equities Global Passive A-acc. From the fund factsheet, I saw that the underlying fund has a TER of 0.24% and a management fee of around 0.18%, which initially seemed like a good investment option.


One of the main selling points was that, because I pay tax at source (Quellensteuer), I could file an ordinary tax declaration and potentially receive around CHF 2,000 in a tax refund. When I later asked how this figure was calculated, I only received a general explanation of the Swiss tax system rather than an actual calculation based on my salary.


The illustration also showed projected fund values after 37 years of:

• CHF 82,937 (0.1%)
• CHF 365,601 (7.1%)
• CHF 579,882 (9.0%)

However, I also noticed that around CHF 600–700 per year is allocated to the Risikokostenteil (insurance component), meaning roughly 20% of my annual premium is not invested.


After reading your articles and other discussions on the forum, I started questioning whether an insurance-based Pillar 3a is the right choice if my primary goal is long-term investing.


I only paid the first monthly premium in April 2026. After doing more research, I stopped paying the following monthly invoices and contacted Helvetia to surrender the policy. This led to the Swiss Life Select advisor calling me, and yesterday I confirmed that I still want to cancel the policy completely. However, the process seems quite slow, and I’m concerned that I may still be required to pay the outstanding premiums while the surrender is being processed.


My questions are:

1. Is a 7.1% annual return assumption realistic for a product like the Helvetia Performance Plan?
2. Is allocating around CHF 600–700 per year to the insurance component typical?
3. Given that the underlying UBS fund has a relatively low TER of 0.24%, do you think the insurance structure still outweighs the benefits of using that fund?
4. Since I have only paid one monthly premium, do you think surrendering the policy now is the right decision?
5. Should I expect to pay the outstanding premiums while the surrender is being processed?

Sorry for all the questions. I’m still new to the Swiss financial system and trying to learn. Thank you in advance for your time, and I really appreciate all your contributions to the community.

 

[gaijin]

Hi @Dan M.` welcome to the forum.

Unfortunately you have been scammed in a way which is legal in Switzerland. A combination of 3a pillar and insurance is in 99% of all cases a bad idea, you should get out of this contract as fast as you can to minimize your damaged. Note: canceling this contract will cost you money. But not canceling will cost you more money long term. Therefore:
- cancel this contract (as you already are in the process. Make sure to follow up)
- start contributing to 3a on finpension or Viac
- If you need live insurance, chose a separate provider

A few readings about this topic:
The bad: The Trap of Life Insurance Third Pillar and Close your pillar 3a life insurance without further delay! and Life Insurance 3a - sharing my experience and Lebensversicherung 3a – Tolle Versprechen, grosse Verluste and Bank oder Versicherung? Experte warnt vor teuren 3a-Fehlern
The good: Third Pillar: All you need to know to retire in Switzerland and Finpension 3a Review 2026: Pros & Cons and VIAC 3a Review 2026 – Pros & Cons and How to choose pure-risk life insurance?


As for your specific points:

One of the main selling points was that, because I pay tax at source (Quellensteuer), I could file an ordinary tax declaration and potentially receive around CHF 2,000 in a tax refund.

This is not specific to the Helvetia product, the same applies if you contribute to a 3a provider like finpension and Viac.

Is a 7.1% annual return assumption realistic for a product like the Helvetia Performance Plan?

Sounds to me unrealistically high. I conservatively estimate the return of my own investment (much more cost and tax efficient than Helvetia) at 4-5%.

Is allocating around CHF 600–700 per year to the insurance component typical?

I don't have any experience. Don't worry about it, just get out of this plan.

Given that the underlying UBS fund has a relatively low TER of 0.24%, do you think the insurance structure still outweighs the benefits of using that fund?

no, absolutely not.

Since I have only paid one monthly premium, do you think surrendering the policy now is the right decision?

Yes, absolutely. The earlier the better. Again, unfortunately you will most likely loose some money.

Should I expect to pay the outstanding premiums while the surrender is being processed?

Probably, yes. As long as the contract is not officially canceled will be required to pay the premium. Still, you already have started the cancellation process, so not paying any further bill is probably the right thing to do.