A little more risk yields a lot more return
Swiss Life has now developed an innovative solution to these requirements in the area of full insurance: Swiss Life ReturnPlus. This is how it works: Corporate clients waive the guaranteed minimum interest rate for supplementary insurance, which has been 2.25% since 2004, but retain their capital protection. This means that the hedging costs no longer apply for Swiss Life. With the current low level of interest, this results in savings of around 1%; with a higher rate of interest, generally this will be more. This saving is good news because Swiss Life can earn higher returns and pass these on to customers. An example: in 2007 Swiss Life paid interest of 3.25% on retirement assets under supplementary insurance (minimum interest 2.25% plus 1% bonus). Without the hedging costs Swiss Life could have achieved 1% higher earnings. With Swiss Life ReturnPlus, the retirement assets of the insureds would have earned interest at 4.25%.
Insureds benefit from compound interest
What does this difference in interest mean for the long-term development of employees' retirement assets? A sample calculation shows that at the age of 65, the retirement assets with ReturnPlus can be around one fifth higher than with traditional full insurance, thanks to compound interest.
The higher return on supplementary retirement assets with Swiss Life ReturnPlus is paid for by a healthy increase in investment risk. It is a healthy increase because numerous safety measures are built in. This means that insured persons can count on 100% capital protection. There is no risk of loss for the pension fund. Furthermore, there is no danger of employers having to make additional payments, as Swiss Life ReturnPlus offers all the advantages of full insurance.
Looking for security? You’ve come to the right place
Swiss Life ReturnPlus is a new addition to the group insurance product range, and can be concluded with all Swiss Life full insurance products. Naturally, traditional products with a guaranteed minimum interest rate are also still available. Corporate clients requiring a very high degree of security or with a small number of employees receiving supplementary insurance continue to be convinced by the benefits of these solutions.
For more information
please visit www.swisslife.ch