When a loved one dies, their surviving dependants often face financial problems as well. That is why you should take precautions and purchase suitable whole life insurance to cover your financial obligations, for example to reduce a mortgage or pay off a loan.
Guaranteed benefit in the event of death
Optional double indemnity where the death is due to an accident
Waiver of premiums in the event of incapacity to earn
Cover your loved ones’ financial needs should the unexpected happen
Ensure your children’s education is paid for
Preserve your family’s standard of living
For self-employed persons
Ensure your business partner’s financial needs
Cover loans you take out to fund your business
Protect your company from insolvency
For residential property owners
Preserve your family home
Reduce the amount of your mortgage
Ensure ongoing maintenance is funded
How does whole life insurance work?
Whole life insurance is dedicated risk cover you can take out under either pillar 3a or pillar 3b. Unlike with an endowment life insurance policy, no capital is accumulated, meaning you benefit from attractive premiums.
In the event of death
The agreed sum insured is paid to your survivors should you die. If agreed separately, Helvetia will pay twice that amount if you die as a result of an accident.
In the case of incapacity to earn
If you are unable to continue earning, your whole life insurance will continue. If agreed separately, Helvetia will make the premium payments on your behalf.
Can I deduct the death benefit insurance from my taxes?
Your whole life insurance is part of the provision you make under pillar 3, i.e. your private pension provision. If you take out whole life insurance under pillar 3a, you can deduct the annual premiums from your taxable income, up to the maximum amount set by the federal government. Premiums paid under pillar 3b are generally not tax-deductible.
How can I terminate my whole life insurance policy?
You can cancel the insurance at any time after the first insurance year.
Should I take out whole life insurance under pillar 3a or pillar 3b?
From the point of view of taxation, pillar 3a is primarily intended to fund your retirement, which makes it an interesting savings vehicle. You can deduct your annual premiums from your taxable income. This is permitted up to the maximum amount fixed by the federal government. The payout is then taxed once, at a separate tax rate.
As no capital is accumulated under whole life insurance, the premiums for it are attractive. If you haven’t yet utilized the maximum amount permissible under pillar 3a, you can take out whole life insurance under that pillar and benefit from the tax advantages offered.
If you don’t want your whole life insurance to end until after you reach ordinary retirement age, it makes sense to take it out under pillar 3b. This also applies if you want to use pillar 3a entirely to fund your retirement.
Contact & advice. Make an appointment today.
A free consultation without obligation
A personal pension analysis and insurance proposal
Over the phone, in your home or at an agency close to you