Three routes in private provision – with very different rules.
Route 1
The bank solution
Strengths
Full flexibility in amount and timing
Higher return potential with securities
Easy to use for home ownership
Weaknesses
No disability or death protection
Savings target not guaranteed
Discipline is up to you
Route 2
The insurance solution
Strengths
Premium waiver if unable to work
Death benefit for the family
Savings target reached even if things go wrong
Weaknesses
Fixed premiums mandatory for decades
Little flexibility
Heavy losses on early termination
The middle way
Combine instead of either-or
Proven approach: save via a bank 3a with securities + separate pure risk insurance for death and disability. Flexible, transparent, separable at low cost.
For clarity
Pillar 3b: free instead of tied
No limitsUnlimited contributions, free beneficiaries
No deductionIn principle not deductible – exceptions e.g. FR/GE
WithdrawalCapital gain generally tax-free
Good to know
Never under pressure
💡 A 3a policy binds you for decades. Compare costs, surrender values and alternatives calmly – ideally neutrally and provider-independent.