Death insurance in Switzerland

If your income disappears, your loved ones must be able to keep living, pay for housing and meet major commitments. Finwise helps you choose a fair death benefit that is tax-consistent and adapted to your family situation.

What is it?

Capital paid to loved ones in case of death

Death insurance financially protects beneficiaries if the insured person dies during the policy term.

Mandatory?

No, but often decisive

It becomes essential when a spouse, cohabiting partner, children, mortgage or business depends on your income.

Key point

The right capital depends on the real gap

You need to account for OASI, occupational pension, debts, housing, children and marital status.

Death insurance diagram

Protect dependents and commitments (mortgage, family) if you die.

  1. Tuning Term and options How long the need lasts
  2. Decision Sum insured How much is truly needed
  3. Base Commitments to cover Mortgage, children, living standard

Sum insured, beneficiaries and need duration are the 3 levers.

What is death insurance for?

Death insurance, also called death risk insurance or pure risk life insurance, pays a defined capital to beneficiaries if the insured person dies during the policy term. It does not necessarily build savings: its main role is to protect against a sudden financial loss.

It can help maintain a spouse's standard of living, protect children, cover a mortgage, finance studies, repay a loan, compensate alimony or secure a business partner.

Form
Use
To check
Constant capitalStable protection
Same insured amount throughout the term, useful for family, cohabiting partner or business partner.
Premium budget, term, beneficiaries and adaptation if the situation changes.
Decreasing capitalDecreasing debt
Capital that decreases over time, often suited to a mortgage or amortised loan.
Debt curve, mortgage maturity, pledge and family needs beyond the loan.
Mixed life insuranceProtection + savings
Combines a death benefit with savings or investment value.
Fees, surrender value, return, duration and comparison with separate pure risk cover.

Calculating the death benefit

Debts + Income to replace + Children's projects - OASI/occupational pension benefits

The right amount is not a random sum. It must create the necessary liquidity without paying a disproportionate premium.

Social benefits are not always enough

In Switzerland, OASI can pay survivor pensions to widows, widowers and orphans under certain conditions. Occupational pension can supplement this with a spouse, registered partner or orphan's pension depending on the law and pension fund regulations.

For cohabiting partners, protection often depends on the pension fund regulations, correct partner notification and sometimes proof of cohabitation. Benefits can therefore leave a major gap in case of an unmarried family, high income, self-employment, large mortgage or high family expenses.

Pillar 3a or pillar 3b?

Dans le pilier 3a, les primes peuvent être fiscalement déductibles dans les limites légales, mais l’ordre des bénéficiaires est encadré par la loi. Cette solution convient souvent lorsqu’on veut combiner protection et optimisation fiscale.

Dans le pilier 3b, la liberté est plus grande : bénéficiaires, durée, structure et protection du concubin ou d’un partenaire commercial peuvent être définis plus souplement. Les primes ne sont en général pas déductibles au niveau fédéral, mais la flexibilité peut être décisive.

Common pitfalls

Effective death insurance depends on the right people, the right amount and the right beneficiary clause.

Capital too lowIt repays a debt, but does not replace missing income.
Cohabiting partner not protectedWithout an adapted structure, the partner may receive nothing automatically.
Outdated beneficiariesMarriage, divorce, birth or change of business partner should trigger an update.
Imprecise health questionnaireAn omission can create a dispute at death.

I already have death insurance: what should I check?

Check the capital, duration, beneficiaries, 3a/3b taxation, pledge, exclusions, premium, possible surrender value and suitability for your mortgage. An old policy may be correct, too low or simply misaligned.

When is it particularly recommended?

It is particularly useful if you have children, someone financially dependent on you, a cohabiting partner to protect, a mortgage, private loan, self-employed activity or business partners. It can also cover a sensitive period: young children, studies, home purchase or business launch.

Elle doit être coordonnée avec l’assurance vie, l’incapacité de gain, la LPP et votre plan successoral.

With Finwise

We protect the right people, not just an amount

We calculate your pension gap, compare 3a and 3b, and analyse beneficiaries, mortgage, family, budget and taxation. The goal is fair, understandable capital that is useful when it must serve.

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Coordinate your family protection

Death insurance works best with the other building blocks of pension and income protection.

Life insurance Disability income Pillar 3a Pillar 3b

Calculate my protection need See life insurance See disability income

Let’s talk about your needs

Tell us about your situation in a few lines. A Finwise adviser will contact you to clarify your options and compare suitable solutions.