When starting a family and when you have a child, your life not only changes dramatically, but your whole financial situation does too. Suddenly, there’s a lot more at stake. Find out here how to protect yourself and your loved ones and how to maximize your insurance coverage and pension provision.
And suddenly you have a child. You’ve thought of everything and made the necessary preparations. You chose a name months ago, your bookshelf is full of books on parenting, and the baby’s room was ready for its little occupant as soon as the pregnancy began to show. You already discussed the division of tasks with your partner some time ago.
That’s good because when your little treasure arrives you’ll have your hands full – and sleep will become a rare commodity. In the joy of anticipation, people often forget their insurance coverage. Because with a child it’s not only your lifestyle but also your needs that change fundamentally. Obviously: A family requires a completely different type of protection. It’s best to adapt your insurance before the child is born, while you still have time.
Parents want their children and family to be well at all times. Dealing with topics such as financial protection, pension gaps or strokes of misfortune such as accidents and illnesses is tedious – but essential. If one parent falls ill, becomes disabled or dies, the partner may have to cope with high additional costs on top of everything else.
This type of financial emergency can quickly result in debt for parents, which is an additional burden that nobody wants. This is where you need protection for yourself and your child. Keeping the household going and childcare can soon result in costs of several thousand francs a month. This is often also compounded by organizational challenges. Protecting your partner and child against this type of financial worry should therefore be just as much a part of providing for the future as building up assets.
Generally speaking, in Switzerland the financial risks of a parent being unable to do their bit are covered via the compulsory benefits of the 1st and 2nd pillars. This is the case when the parents are married and both are employed.
For unmarried couples, things are more difficult. If one person dies, the surviving partner does not receive an AHV (OASI) pension. As regards occupational benefits, it depends on the pension fund as to whether or not the cohabiting partner is entitled to monetary compensation.
Contribution gaps in the 2nd pillar can be closed with a Pillar 3a solution.
You can also protect your partner or your child with whole life and occupational disability insurance. With an occupational disability pension you can protect your family and can rely on a substitute income in the event of one parent becoming unable to work. This also applies if you are unable to work – whether for a lengthy period or permanently. You will receive regular payments in addition to your other pension benefits. An occupational disability pension offers protection against serious loss of earnings in particular for self-employed persons. Best of all: It can be tailored flexibly to your needs and combined with your retirement provision.
With whole life insurance you also protect your family. What many people do not know: This insurance can be arranged for families with a small budget – and it is particularly important in this case. Whole life insurance is flexible and can be combined with other pensions and your retirement provision. If something happens to you, the death lump sum is paid out immediately, independently of any inheritance proceedings. And in situations like these, ensuring financial protection for your family is the most important thing.
Every family has its own needs – and needs the appropriate insurance coverage. We analyze your family’s individual situation as regards income, expenses, assets and taxes. We also take the financial risks into account as well as your personal need for protection.
Our advisors will show you any gaps in coverage and recommend a solution tailored to you and your situation. We recommend arranging an appointment today so that your loved ones are optimally protected in future.