Presently, all Swiss annuities earn a guaranteed interest (a technical interest rate), of 2% on the capital. While the technical interest rate is guaranteed, it may only be adjusted for new policies for Swiss franc annuities, these are approximately the same rate as Swiss government bonds.
Interest earnings are supplemented annually by any profit-sharing dividends, thus ensuring your annuity certificates earn competitive market rates. The annual dividends depend on the general level of interest rates in Switzerland and on the insurance company’s investment performance. The dividends are adjusted to market interest rates annually, and therefore, are not guaranteed as to performance for the future. Historically, the average annual dividend rate paid out on Swiss franc annuities has been 1% - 5%, depending on the currency selected. Also the favourable currency exchange rates have added a significant capital gain vis-à-vis the USD over the past years.
The technical interest rate is the guaranteed interest rate that is credited to the investment portion of your annuity certificate. According to the rulings of the Swiss Insurance Association, insurers are entitled to deduct a very small amount for administration and mortality.
Obviously, it makes sense to choose a currency that provides consistently good growth in comparison to other currencies. The Swiss franc has been stronger than any other currency in the world for most of the past 30 years. However, in the recent short term, the AUD and the NOK have shown appreciable gains.
A Swiss annuity compares very favourably when you look at the new return on other guaranteed investments (i.e., consider the return of other investments after deducting their fees, commissions, annual management charges, withholding taxes and income taxes).
Another major advantage is the strong probability of a substantial currency exchange rate gain. For example, the Swiss franc has shown a significant gain over the past decades!
Bonds, GIC’s bank term deposits and similar investment vehicles are subject to a Swiss withholding tax, usually 35%. There is no withholding tax in Switzerland on the gain or earnings of a Swiss annuity for non-residents. Therefore, the net return on bonds etc. is less than half of the guaranteed portion of a Swiss annuity.
If you are concerned about the difference of only one or two percentage points of return on your investment, then stay with your local bank. But remember, the safety of capital and guaranteed benefits are always more important than a potentially small difference of gain.
We’ll be glad to. We can work out a personal proposal for you showing the accumulated value of your investment as well as the optional life income to be paid. The illustration will show the guaranteed values and returns over the years or term. Although the dividends are not guaranteed, the illustration will show their estimated and projected values. All we need to know is your gender, date of birth, the approximate amount of your investment, the currency preferred, and at what age you may want to begin receiving income.
Mostly by using international wire transfers for deposits and premiums into Switzerland. Cheques can be used, however, that generally leads to delays since the European banks are not used to cheques, and they’re hardly used in Europe anymore.For monies and benefits paid out of Switzerland, clients also use direct wires.
Yes, you can. Funds can be transferred electronically or by cheque. Simply send your instructions in writing to the insurance company’s broker.
In regards to payments, it is no problem to have the funds converted from CHF to USD (or any other currency), and wired to your account in USD.
One important thing to remember, that sometimes a wire can be expensive to receive in the US (You should check the receiving bank’s charges on your end).
Our role is simply to provide complimentary information to our clients and to any interested investor. There are no fees. Since 1981, we found that Swiss annuities provide many unique advantages not available with Canadian or American plans. Because they are not advertised or marketed here, we identify these important features and recommend them for effective estate and financial planning. We continue to update and recommend the most suitable plans and Swiss brokers for our clients. After the referral, the investor then deals directly with the Swiss, in strict confidence.
Forces Vives was created by three well known and established Swiss insurance companies; Geneva’s Les Rentes Genevoises (established in 1849), and Canton Vaud’s Les Retraites Propulaires (established in 1907), and La Caissee cantonale d’assurance populaire de Neuchatel (1898). So Forces Vives, with the backing of three major stable institutions, can draw on over a century of manifold experience.
You can, but they do not sell the same type of Swiss annuities that we recommend. Also they must operate under the Canadian and US rules and report to their tax departments, government agencies, etc. The investor would lose all The Swiss Advantage™s such as confidentiality, seizure-proofing, no-tax reporting etc. The Swiss life insurance companies we recommend have no offices or any connections whatsoever in North America.
It is possible but would not be any cheaper or to your advantage or be convenient. For the purpose of language facility and policy service, the Swiss insurance companies prefer you to use an accredited, authorized resident Swiss broker to be your representative.
Swiss insurance companies do not engage in rate competition, and instead focus their energies on maintaining their strength. Because the insurance industry is somewhat concentrated, it is, on the whole, stronger, and easier to supervise than the insurance industry in the United States where there are hundreds of companies to regulate.
In Switzerland, ultra-conservative investment regulations, issued and enforced by the "Swiss Financial Market and Supervisory Authority" (formerly known as The Swiss Federal Bureau of Private Insurance) regulates the insurance industry in Switzerland. It has the reputation as being a strict regulator.
No. That type of insurance is not necessary. Swiss annuities are provided only by Swiss life insurance companies, which are effectively regulated by "The Swiss Financial Market and Supervisory Authority". As a result, there has never been a default or failure of any Swiss Life insurance company for over 140 years!
Compare this with the FDIC in the US which “protects” investors from losses only under USD 250,000, who have funds invested with banks, trust companies, savings and load companies and mortgages companies. Since 2008, over 350 financial institutions failed, causing serious losses that exceeded the maximum limits. (How much did investors lose when Executive Life Insurance Company and Long Term Capital Management imploded)?
And in Canada, the CDIC (Canada Deposit Insurance Company), founded in 1967, which “protects” investors up to CAD 60,000, saw over 43 failures of member financial institutions, including several life insurance companies, banks, and trust companies. Despite the maximum “protection”, hundreds of thousands of dollars were lost by investors. There were also many uninsured companies, (thought to have been insured, but weren’t), such as Abacus and The Principal Group. They failed, with disastrous results to its investors. So much for government agencies that are established at great expense, to “supervise, protect, and look after our investments.”
It is reported that if all the insured financial institutions in Canada failed, the CDIC could only payout 3% of the claims!
Nothing in this world in absolutely guaranteed. We believe the Swiss guarantee is still the best available. Historically, they have proven this to be true.
The guaranteed technical interest rate is presently 2%. In addition, dividends, although not guaranteed, historically, have added substantially to the cash values. There is also a strong potential growth because of the currency factor, - a favorable foreign exchange rate gain. For example the Swiss franc was worth about 23 US cents in 1971 and in 2010, about 90 cents US. In Canadian funds, it was worth 25 cents, and today, is near parity.
Will this trend continue? No one knows. However, comparing the hard facts and economic indicators of Switzerland with those of other countries, one would tend to answer this question with YES.
Depending on the currency denomination of your Swiss fixed annuity, average profit sharing (dividends) rate IN ADDITION to the 2% technical rate have been increased by various companies. Dividends may vary up to 3% +
Swiss insurers are tightly monitored for their solvency, continuity, liquidity and risk allocation of all investments. The main body of control is the BVP ("The Swiss Financial Market and Supervisory Authority") controlling insurers though periodic audits, inspections on site as well as through a semi annual reporting duty.
For reasons of language, quality of service and safety, the Swiss companies prefer that a Swiss Broker, in Switzerland, serve as your representative, advisor, consultant and servicing agent. It’s mandatory for some companies. Their English speaking staff members are efficient and therefore you can contact them for any questions you may have or charges you wish to make in your existing policy. Their services are free of charge as they are paid by the companies with which you invest. Their commissions and fees are standard and all transactions are strictly regulated by Swiss authorities.
We recommend BFI Consulting AG, an independent, registered Swiss financial services company and insurance broker. We found their honesty, integrity, and expertise to be impeccable. They work closely with large banks, insurance companies, money managers, mutual funds, and security/commodities/currency dealers all over Europe. Their registration allows them to provide a broad array of wealth planning and management services from and within Switzerland.
They are a registered member of VQF, a vocational organization of Swiss asset managers and financial services institutions, supervised by the Swiss government with the objective of quality assurance according to the highest professional standards and Swiss law. For more information you may contact the VQF by email at info@vqf.ch or by telephone at +4141763 28 20. You will find the VQF website at www.vqf.ch
Our services are free of charge. The premiums you pay and the benefits you receive will be exactly the same regardless of whether you deal with an insurance company directly or take advantage of our services.
The information contained and referenced on this website should not be regarded as an offer, solicitation or recommendation for any investments, investment funds or products in any jurisdiction where such activity is unlawful.