Making provision for future eventualities is about shouldering responsibility – for yourself, your partner, your family or your business partner. Life insurance is a Pillar 3 option that supplements your OASI and occupational pension fund benefits. Though making private provision is voluntary, the federal and cantonal governments offer tax incentives for it. You can safeguard your loved against financial risks, top up your retirement pension income or invest your money in funds. The advantage of life insurance is that it allows you to play it safe in terms of your pension solution. Depending on your needs, Helvetia can offer you a variety of different life insurance options.
With a term life insurance policy you can protect yourself in case of your death or disability. You pay a regular premium but you do not accumulate any capital. The contractually guaranteed sum is only paid out if the insured risk occurs. The premiums for purely term life insurance policies are relatively low, as no capital is accumulated.
With an endowment insurance policy, it is your intention to save capital. You can save with regular payments or a single one-off payment – be it for your retirement or for a different savings objective. At the same time you are also covered against financial risks that may pose a threat to your livelihood. The money is paid out to you after the agreed contract term. This amount is made up of the guaranteed sum insured plus any policyholder dividends.
With this form of life insurance you invest your money in selected funds or you participate directly in market performance via an index. Here too, you can invest regular amounts or make a one-off payment. The yield depends on the performance of the fund or the index. You can benefit from good profit opportunities when the market is buoyant. At the same time, however, you also have to take into account fluctuations in the performance of your savings. With unit-linked and index-linked life insurance policies, in most cases you don’t know exactly how much you will receive as a payout in the end. In some cases, however, minimum maturity payments may also be guaranteed. Similarly, with unit-linked and index-linked life insurance policies you are simultaneously covered against financial risks that may pose a threat to your livelihood.
There is a fundamental difference between pure term life insurance, to cover financial risks that may pose a threat to your livelihood, and endowment life insurance. With an endowment life insurance policy you also accumulate capital, thus saving for the future at the same time. Endowment life insurance policies differ in the way capital is accumulated – either in the classic form with guaranteed interest payments or in their market-dependent version by means of investment funds or index-linking.