The main differences between insured and non-insured Pillar 3a are:
With regards to maximum flexibility, a non-insured Pillar 3a is the better option here. You are able to contribute as much, or as little, as you like on a monthly or annual basis.
That being said, if you find yourself requiring the discipline that ensures you must pay into your Pillar 3a every year, perhaps an insured Pillar 3a will be useful for you.
When we look at the insurance element, you are paying a premium for life assurance from your contributions to an insured Pillar 3a.
For those with families or loved ones you wish to be financially cared for in the worst case scenario, you may find the life assurance comforting.
However, you are able to purchase life assurance separately to your Pillar 3a, too.
Cancelling or transferring a non-insured Pillar 3a will often be much easier than an insured Pillar 3a that may have associated early termination fees.
It is important to always read the contracts with which you are provided, before signing.
Insured Pillar 3a accounts will provide you with a 'surrender value', the terms for which will be detailed in the contract you sign. Your surrender value can be significantly less than the amounts you have paid due to the life assurance premiums and remaining contract period.
Non-insured Pillar 3a accounts should provide you with the total value of your contributions (minus any applicable fees).
If you are planning to only be in Switzerland for a limited period of time (say, 5 to 10 years) and prefer enhanced flexibility and/or easier termination processes, this would mean it would be worth considering a non-insured Pillar 3a.
If you are permanently living in Switzerland, a more in-depth analysis of the most suitable option for you should be undertaken.
The real answer is: the best choice is the one that is most suitable for your circumstances.
The points raised in this response are here to make you aware of the various elements for both non-insured and insured Pillar 3a accounts.
Please note that all content within this response has been prepared for information purposes only. This response does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.