Protection in the event of death and disability, building up long-term retirement provision Life insurance

Life insurance (Pillar 3a/3b) insures risks such as death and disability. But it can also be used to build up capital and for private retirement provision. There is therefore a distinction between risk life insurance and endowment products.

Advantages of life insurance from AXA

  • Without Pillar 3, you are missing around 40% of your previous earned income.
  • No pension gap
  • Guaranteed minimum payout

What types of life insurance are there?

Risk

Risk life insurance insures financial losses that occur due to death or through disability. Did you know? Experts also talk about biometric risk in this regard. 

Term life insurance

In the event of a death, the policyholder’s surviving dependants (family or a named person) are covered against the financial and economic consequences through term life insurance. They receive an agreed pay-out, the guaranteed lump-sum death benefit.

Occupational disability pension

In the event of occupational disability, an occupational disability pension with guaranteed benefits is paid out. This is designed to close the income gaps that arise after a drastic event, such as illness or accident. 

Savings life insurance (Pillar 3a/3b)

These products contain the benefits of a risk policy and enable capital to be saved for the period after retirement and long-term pension provision to be built up. They are often called combined life insurance and can be taken out either as tied pension provision(Pillar 3a) or flexible pension provision (Pillar 3b).

Unit-linked insurance is also a form of savings life insurance. Depending on the situation, these products can generate a higher return compared to traditional deposits (such as with a bank). To be able to accumulate enough assets for retirement provision, capital is increasingly built up through investments on stock markets. Experts recommend combined models for those who build up reserves with shares and make provision. In these instances, part of the money is invested in shares and the other half earns fixed or variable rates of interest. There are various providers on the market and the respective offers should be carefully compared.

AXA life insurance products (Pillars 3a/3b) as a comparison

Risk life insurance

AXA term life insurance

AXA term life insurance insures financial risks that occur due to death. The amount paid out can be freely chosen and in the event of death, the sum insured is paid out independently of the inheritance process. Learn more about this

AXA occupational disability pension

AXA’s occupational disability pension covers loss of earnings due to  occupational disability or through illness. Learn more about this

Savings life insurance

AXA SmartFlex pension plan

AXA’s SmartFlex pension plan is a flexible solution to save for the period after retirement on an individual basis and with inclusive risk protection. It can be used to counteract financial shortfalls and to maintain the accustomed standard of living after retirement. Learn more about this

When does life insurance make sense?

Protection in the event of death or disability

If someone dies due to accident or illness or if disability occurs, this often results in a serious loss of earnings. This can only be partially covered by state and occupational pension schemes. In these instances, life insurance would be a useful supplement. It can close the resulting financial gaps by paying out the agreed sum insured.

Making provision for old age

Those who would like to continue with their accustomed standard of living after reaching OASI retirement age normally have to rely on a private pension solution. Savings life insurance (also known as endowment insurance or combined life insurance) is a simple way of setting aside money for retirement based on Pillar 3a. It helps to build up retirement provision for the long term and to avoid a pension gap. 

Reduce tax

The Swiss pension system allows you to use life insurance as a smart way of saving on tax by letting you deduct payments into Pillar 3a from taxable income. You can find out more information in the section below.

Frequently asked questions

  • What are the advantages of life insurance?

    Life insurance offers security against loss of earnings that occurs through death or disability. It can be used to help increase private pension provision, build up capital for the period after retirement and save on tax thanks to Pillar 3.

  • What is the right life insurance for me?

    The best life insurance is the one that meets your needs. Whether pure risk life insurance or combined insurance: The best solution largely depends on your individual needs. Don’t forget: It's also worthwhile comparing life insurance. We will be happy to analyze your pension situation in a personal consultation and draw up an individual proposal.

  • Will I get back the premiums I have paid into a term life insurance policy?

    No. As term life insurance is pure risk life insurance, the agreed benefits are only paid out to the beneficiary in the event of death. Those wishing to cover risks such as death and disability while at the same time saving capital should ideally seek advice about savings life insurance (e.g. SmartFlex pension plan).

  • What needs to be considered with life insurance when it comes to inheritance?

    Generally, the following applies: If the insured person dies, the beneficiary receives the agreed benefit, regardless of inheritance law. This is a simple way for a life partner, for example, who is not a legal heir, to be a beneficiary. However, if the beneficiary dies and there are no other defined beneficiaries, a new beneficiary should be named, as the capital would otherwise form part of the regular estate. 

  • For whom is life insurance suitable and in which cases?

    Anyone looking to cover the risk of their death, disability, occupational disability or their partner should consider life insurance. It is geared toward families and single parents as well as home owners, the self-employed or married and unmarried couples.

  • What happens to life insurance in the event of divorce?

    If the clouds of war are gathering after the first few years of harmony, many couples are faced with financial challenges. The question of who life insurance belongs to after divorce must be answered in different ways. Assets of Pillar 3a or 3b are normally divided between spouses, unless otherwise agreed in the separation of property. Other points should be considered in the event of death. If, for example, the policyholder would like to prevent the former partner as beneficiary from receiving a pay-out of the sum insured in the event of death, the name on the insurance policy must be changed.

  • What are the tax advantages?

    Anyone who takes out life insurance on the basis of Pillar 3 (Pillar 3a) can deduct from taxable income the pension contributions they have paid in,   which is up to CHF 6,826 for employees or CHF 34,128 for the self-employed. This way you reduce the annual tax burden.

  • Which life insurance is tax-deductible?

    Capital life insurance, which is also called savings life insurance, can be deducted from tax. The premiums for risk life insurance in Pillar 3a also benefit from tax advantages and can be deducted from taxable income. With combined products that contain savings and risk elements, tax can also be saved on the basis of Pillar 3.

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