What is life insurance?
Life insurance covers risks such as death or disability - these are called pure term life insurances. There are also life insurances that mainly serve as retirement provision, known as endowment life insurances. Both belong to the third pillar of the Swiss 3-pillar system, and thus to your private protection.
Life insurance offers financial security for numerous life goals. This can be securing a home, maintaining the family's standard of living after unforeseen events, or safely achieving a savings goal regardless of life circumstances. Also, offsetting a reduced income from the first and second pillar in planned early retirement is possible. Life insurance also reveals new opportunities for tax savings since you can deduct the relevant contributions in the pillar 3a from taxes.
Why and for whom is life insurance relevant?
Life insurance serves various purposes. For young people, it's advisable to insure against incapacity to work. Families should consider coverage in the event of death. It is also recommended for everyone to save for old age or for acquiring property. Since the state pension (AHV) and occupational pension do not always cover everything, life insurance can close potential supply gaps.
How do I find the right life insurance?
The optimal life insurance depends on your individual situation. Whether single or with a family - different life phases require different protection models. A consultation will clarify your financial position in case of incapacity to work, the extent to which your family is insured in the event of death, and whether you have a retirement provision gap. This way, you'll find out which pension solution suits you best. Contact us here to arrange a consultation with insuris insurance experts.
Constant benefit or decreasing benefit life insurance?
The decreasing term life insurance is a specific variant of the standard term life insurance. Its purpose is to keep the sum assured and premiums consistently at a level that, upon the death of the insured person, is just sufficient and necessary.
In a level term life insurance, the sum assured remains unchanged at any given time and always stays at the same level. In return, the policyholder pays a consistent premium throughout the entire term of the contract, in contrast to the decreasing term life insurance, where the amount gradually reduces.
What are the pros and cons of a linearly decreasing versus a level term life insurance? Linearly decreasing term insurance is generally less recommended, as it's seen as less adaptable. An annually adjustable term life insurance seems optimal.
With a level term life insurance, you'll be well-equipped against most unpredictabilities - especially if the primary purpose is to protect your family and not mainly for loan repayment.
When and how much does life insurance pay out?
The payout time of life insurance varies depending on its type:
For term life insurances, the payout occurs only when the insured event - such as death or incapacity to work - occurs.
Capital-building life insurances pay either in an insured event or at the end of the term, the so-called maturity.
The payout amount is determined as follows: If the life insurance has a guaranteed sum, at least this amount will be paid out. Additional, non-guaranteed surpluses may be added. For contracts without a fixed payout amount, the amount depends on various factors, such as the development of investment funds or the current interest rate level.
If you have further questions or would like to take out life insurance now, you can contact our insuris team. We offer personal advice to find the optimal solution for your needs.