Life insurance in a nutshell
With life insurance, you can sleep peacefully at all times
According to the Swiss Insurance Association (SIA), around 50-60% of the adult population in Switzerland have taken out one of the various forms of life insurance. This is reason enough for you to look into the subject. Find out more.
This is life insurance
A life insurance policy is a contract between a person (policyholder) and an insurance company.
In the event of death or upon reaching a certain age or event (depending on the type of insurance), the insurance company undertakes to pay out a contractually agreed sum to the beneficiaries in the contract or to the policyholder himself.
There are several types of insurance that cover different needs and objectives.
Main types of life insurance:
Risk insurance Description:
This insurance offers pure death cover. The specified sum is paid to the beneficiaries if the policyholder dies during the term of the policy.
Purpose: To provide financial security for the family or surviving dependants in the event of death.
Premium: Generally lower, as no savings component is included.
Mixed insurance Description:
This insurance combines elements of term and endowment insurance. It offers both death cover and a savings component.
Purpose: Financial security for the family and asset accumulation
Premium: Moderate to high, depending on the savings portion and death cover
Endowment insurance Description:
This combines death cover with a savings component. It pays out a fixed sum in the event of the insured person's death or at the end of the contract.
Purpose: Combination of risk protection and capital formation, often for retirement provision.
Premium: Higher than with term insurance, as part of the premium is saved.
Disability insurance Description:
This insurance pays a pension if the insured person becomes permanently unable to work due to illness or an accident.
Purpose: Income protection in the event of permanent disability.
Premium: Dependent on age, state of health and sum insured.
Unit-linked insurance Description:
This type of insurance combines death cover with an investment in investment funds. The payout in the event of death or at the end of the contract depends on the performance of the funds.
Purpose: Combination of risk protection and the opportunity to achieve higher returns through investment funds.
Premium: Generally fixed. However, the performance of the funds influences the value of the policy and thus the amount of subsequent payouts or the surrender value.
Training insurance Description:
A special form of life insurance that aims to save capital for children's education. It pays out a sum when the child reaches a certain age.
Purpose: Financing the education of children.
Premium: Variable, depending on the desired amount to finance the training
Choosing the right insurance depends on your individual needs and goals as well as your financial means. It is important to obtain comprehensive information in order to find the right insurance solution for your situation.
Here are the most important reasons to take out life insurance
Financial security for surviving dependants
Income replacement: In the event of your unexpected death, insurance can be an important source of income for your family. It helps to maintain your loved ones' standard of living and cover ongoing costs such as rent, health insurance, mortgage payments and daily expenses.
Debt settlement: The sum insured can be used to pay off outstanding debts such as mortgages, car loans or credit card arrears, thus reducing the financial burden on your surviving dependants.
Being able to sleep peacefully
Peace of mind: Life insurance gives you and your loved ones security and peace of mind knowing that financial support is available in the event of an unexpected death.
Long-term financial planning
Retirement provision: Some life insurance policies, especially endowment and unit-linked policies, have a savings component. These can help you save capital for retirement or other long-term goals.
Children's education: Life insurance can ensure that your children receive a good education even in the event of your death by providing the necessary financial resources.
Heirs and estate planning
Transfer of assets: The sum insured can be used as an inheritance to pass on assets to the next generation.
Tax benefits
Premium deduction: Premiums for capital-forming insurance policies can be deducted from tax under pillar 3a (tied pension provision), provided they meet certain conditions.
Taxation of benefits: Payouts from pillar 3a are taxed at a reduced rate when they are paid out.
Safeguarding business partners
Business protection: For business owners, life insurance can serve as key person insurance to protect the company from the financial consequences of the death of a key employee or business partner.
PS: People still take out life insurance today
According to the Swiss Insurance Association (SIA), around 50-60% of the adult population in Switzerland have some form of life insurance. This figure includes both risk insurance and capital-forming insurance.
There are several million insurance policies in Switzerland. Many people have more than one policy, for example a risk insurance policy to protect their family and a capital-forming insurance policy to provide for old age.