Overview of life insurance products

Save for a worry-free future!


Taking out a life insurance policy makes it possible for you to save for the future in several different ways. Depending on which type you choose, you can have pure risk insurance or you can also save for retirement with an endowment life insurance. The latter option is particularly useful when you not only want to make sure your family is financially secure, but also to ensure a comfortable retirement for yourself.

  • Pure risk life insurance in the event of death: This kind of insurance policy pays out a fixed lump sum to the beneficiaries in the event of the death of the insured person within an agreed period. Such a life insurance policy serves exclusively to ensure the financial security of those left behind. It can be expanded to include the risk of occupational disability.
  • Pure risk life insurance in the event of occupational disability: When a person becomes incapable of working as the result of illness, the payments under the Accident Insurance legislation (Unfallversicherung – UVG), the Old-Age and Survivors’ Insurance legislation (Alters- und Hinterlassenenversicherung – AHV) and the occupational pension are often not enough to compensate for the loss of earnings. Life insurance supplements the government benefits, and of course it also pays out in the event of occupational disability caused as the result of an accident. It can be expanded to include the risk of death.
  • Endowment insurance: This type of insurance combines the financial security in the event of death or occupational disability with a savings component that allows you to build up capital. When the insurance term expires, the policy holder will receive a lump sum from the capital saved up, a share of the profits and net interest income (the insurers guarantee a minimum interest rate).
  • Unit-linked life assurance: Endowment insurance can also be taken out as a unit-linked product. This means that the savings are partially or entirely invested in investment funds. As a result, the retirement pension has higher potential returns, but at the same time also higher risk. The tax advantages remain the same.
  • Third-pillar life insurance: A life insurance policy can either be taken out as pure risk life insurance in the event of death and/or disability, or combined as savings insurance and death cover (mixed endowment insurance). A sum is insured which is paid out in the event of death, or in the case of endowment insurance is also paid out upon the expiry of the policy. An annuity pension in the event of occupational disability can also be included.
    Both products can be taken out as a restricted pension plan (pillar 3a) or as a non tax-qualified pension plan (pillar 3b).

 

Third-pillar life insurance

Feature Pillar 3a life insurance Pillar 3b life insurance
Insurance products
  • Mixed endowment insurance with both lump-sum payable on death and endowment sum
  • Pure risk life insurance (in the event of death and/or occupational disability)
  • Life annuity
  • Mixed endowment insurance with both lump-sum payable on death and endowment sum
  • Pure risk life insurance (in the event of death and/or occupational disability)
  • Life annuity
Tax treatment
  • Contributions (up to the legal maximum) can be deducted from your taxable income
  • This reduces your tax rate when it is paid out, since it is separated from your other income
  • Contributions are not tax deductible
  • During the policy period, the surrender values of insurance policies are taxable as capital
  • Tax-free on payout
Contributions/premiums
  • A maximum of CHF 6,768 for employees covered by company pension plans
  • A maximum of CHF 33,840 for self-employed persons
  • Can be chosen freely
Beneficiary
  • In accordance with statutory rights in inheritance law
  • Can be chosen freely, taking statutory entitlements into consideration
Availability (term)
  • Can be withdrawn at the earliest five years before and at the latest five years after the regular retirement age under the the Old-Age and Survivors’ Insurance legislation (Alters- und Hinterlassenenversicherung – AHV)
  • Can be chosen freely
Advance withdrawal
  • To finance owner-occupied residential property
  • If the insured person receives a full disability pension
  • To purchase additional second-pillar pension benefits
  • If the policyholder becomes self-employed
  • If the policy holder leaves Switzerland (emigration)
  • No restrictions
Available to
  • All employees and self-employed persons liable to pay tax in Switzerland
  • All persons over the age of 18

 

Are you looking for the ideal pension solution? Let us help you!

Is your pension going to be enough for you to keep the same standard of living after you retire? Do you also want to make sure your family is financially secure and save on your tax bill every year? There is a huge range of pension products available. An in-depth analysis should be carried out in advance to find the right solution for you which meets your personal requirements. Please get in touch with us for a non-binding and free advice from the pension experts at our partner service Optimatis. You can then make your decision when you are ready and they will take care of the rest.