Life insurance policies differ from one another based on their investment form and also their modalities regarding pay-out. For example there are the following types of life insurance:
The FMA determines how high the guaranteed interest rate from an insurance company may be allowed to be when concluding the contract. Information Brochure on Life Insurance Overview of historic maximum interest rates
Life insurance is designed to have a very long term. Early termination contradicts the essence of the product and is associated with losses to your detriment. Termination, particularly during the few first years after conclusion of the contract is particularly disadvantageous for you.
The total interest on your life insurance policy consists of the guaranteed interest rate and the interest from the participation in profits.
There may be an external guarantor that takes over the guarantee that amount to be paid out does not fall below a certain amount. However, in the event that the guarantor becomes insolvent during the term, then the guarantee may potentially become void.
FMA Focus on Life Insurance