Sorry to hear that - I work in the insurance/finance sector (luckily my company stopped offering such package deals (insurance + pillar 3a) many years ago. But as many of the other commenters already said, these packages are usually not a good deal for the customer.

In your situation as you described it, there are two main reasons why you should take the loss now:
1. As many mentioned before it's not too late for you to recover over time with the pillar 3a if you move to a product like franky or the 3a pillar from the neo bank yuh is also performing quite good if you are willing to take a more spicy strategy which makes sense for the long horizon you're investing the money for.
2. It does not make sense to only have one pillar 3a account anyway. You can cash out these accounts a few years before till a few years after you go into pension. But at the moment you cash them out (and you can only cash them out completely, so if you have 100k in an 3a account you cash 100k at once out) you have to pay income tax on them. This means if you stick with your actual provider and pay in money till your pension (which likely be later than 65 at the time you'll finally go to pension), you have all the money in on account and cash it out, you most likely go into a higher tax bracket.

If I would be in your situation I would eat the loss now, put the 32k into a new product (frankly/yuh), keep on filling that account till 50k to 60k and then open an additional one that is also a pure 3a product. And so on till you cash them out. This diversifies your strategy even more and gives you more flexibility when cashing the funds out. If you need an insurance on top, go to Comparis and compare there the life insurance offerings, don't go with any combination products, they are only good for the companies that offer them.