Saving in pillars
The third pillar of old-age provision is divided into the bound and the free pillars (3a and 3b). Both offer tax benefits, albeit of different types:
3a-column
The insurance premium can be deducted from taxable income for tied pension plans. However, statutory maximum rates apply for this. The deduction for people who are covered by the second pillar (occupational pension scheme) is 6,682 Swiss Francs. Those who are not affiliated to this pillar may claim a maximum of 20 percent of their taxable income (net) for tax purposes, the maximum amount being limited to 33,408 Swiss Francs.
Further tax considerations
Life insurance that has been taken out as death insurance and is part of the 3a pillar is exempt from income, wealth and withholding tax. Life insurance under the 3b pillar, on the other hand, is subject to wealth and withholding tax and in some cases even has to be taken into account when calculating income tax.
A capital benefit from mixed life insurance must be taxed as income when paid into the 3a pillar. However, a special rate applies as a rule, which is considered to be tax privileged. If a 3b pillar life insurance is paid out, certain tax requirements apply.
In summary it can be said that mixed life insurance, life annuity and risk life insurance are deductible from taxable income up to the statutory maximum. If the amounts saved in the 3a pillar are paid out, a reduced tax rate is due.
If savings are made in the 3b pillar, which is also possible with mixed life insurance, with risk life insurance or with a life annuity for all Swiss adults, the payments are not tax deductible. The current surrender values are then viewed as assets and taxed accordingly. If the respective insured sums are paid out, the tax liability is settled and no more taxes are required.
Note differences
If you want to take out life insurance, you should know and take into account differences in the tax treatment of the individual variants. Get comprehensive advice on what a professional tax adviser should do. He will find the solution that suits you best.
You can still use the best life insurance Switzerland by comparing the premiums and services of the individual providers with each other!
