Opening a savings account for your child allows you to offer him capital that will later be used for various projects: traveling, financing a driver's license, taking his first apartment or even financing his studies.
The best known solution is the one offered by banks through the classic bank savings account, which unfortunately offers an almost zero interest rate.
Today, there are much more interesting insurance alternatives, both in terms of performance and conditions.
The characteristics of child insurance savings
Anyone can subscribe to this type of savings for a minor, whether parents, grandparents, godparents, godparents, etc.
The contract is taken out for a limited period of time, which is generally defined, up to the child's 18, 20 or 25 years of age, but again the choice is possible.
Once the contract is over, the money is paid to the policyholder and not to the child. So you have total control of this money once the due date arrives.
In addition, in the event of the death or disability of the parent, the premium will be paid by the company. In no case will the contract end and the child will get what was originally planned.
The advantages of saving for children in insurance
- In Geneva and Fribourg, it is possible to deduct for tax purposes the premiums paid in the same way as the 3rd Pillar 3B
- There are several investment vehicles that allow you to achieve significant returns with minimal risks.
- At the end of the contract, the capital is paid to you, so you have full control over the use of the capital.
- If the policyholder is ill or the victim of an accident, the insurance company continues to pay the premiums for him.
- In the event of the death of the parents, the capital originally planned is paid at the end of the contract to the adult child.
