These life insurance policies exist
The following types of life insurance must be taken out in Switzerland:
Risk life insurance with death insurance
This type of life insurance pays a fixed benefit if the policyholder dies within the agreed term. The benefit is paid in cash and serves to protect the surviving dependents. The amount of the insurance amount can be freely determined. An extension to cover disability is possible.
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Risk life insurance with disability
The benefits that are provided as part of accident insurance or from occupational pension schemes for disability are often inadequate. Private life insurance can supplement these benefits and is paid in the event of illness or accident-related incapacity for work. Protection against death can also be included.
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Mixed life insurance
Death and incapacity for work are covered, as are old-age provision. This means that a capital-building life insurance is integrated to build wealth. After the agreed term has expired, the policyholder will receive the saved capital plus interest and profit sharing. A minimum interest rate is guaranteed.
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Unit-linked life insurance
It is a form of mixed life insurance. The savings capital is either invested in full or at least in part in investment funds. The risk to capital increases, but at the same time the opportunities for returns also increase.
Life insurance as a pension plan?
Pension provision in Switzerland is based on the three-pillar principle, whereby life insurance can be included in the third pillar. To this end, it is taken out as pure risk life insurance or as a mixed life insurance. The capital is paid out in the event of death or when the agreed insurance term is reached. In addition, the pension can be included in the event of disability. A distinction is made between two pillars:
Pillar 3a
Mixed life insurance, life insurance and life annuity come into consideration as insurance products. The contributions are deductible from taxable income up to the statutory maximum, and a reduced tax rate is applied to this capital upon payment. This variant is possible for all employed persons with their main residence in Switzerland and thus for all taxable employees and the self-employed.
Pillar 3b
Mixed life insurance as well as risk life insurance and life annuity are also to be insured here. The deposits are not subject to deduction and therefore there are no tax advantages. During the term, the surrender values are taxed as assets. On the other hand, the capital saved is tax-free upon payment. This variant is possible for all Swiss adults.
Conclusion on life insurance
Life insurance can perform different functions. It can be both pension provision and risk protection in the event of death. In addition, life insurance can be taken out as a mixed insurance and thus provides for death and possible disability. From a tax point of view, the different variants have advantages.
Please compare carefully before signing the life insurance contract! The providers differ very much in terms of the conditions offered. You can Find the best life insurance nowby using our comparison!
