Amortisation / Life insurance

News from DL MoneyPark and information on the financial market and Swiss romande real estate

Author : Kristen

3rd pillar insurance

In the case of disability or death following and illness, the 1st pillar (old age and survivors' insurance (AVS), disability insurance (AI), and income compensation (APG)) and the 2nd pillar (occupational pension fund (LPP)) usually provide only part of the previous income. There are multiple variations, which are all dependent on pension fund benefits. To address these deficiencies, an insurance product is even more desirable if the pension plan has been withdrawn to purchase a property.

The 3rd pillar insurance includes life insurance and options such as a waiver of premiums in case of disability following and illness or accident and the option of a loss of profit and/or lump-sum disability benefit and/or additional death benefit. Therfore, you will will have full coverage for yourself and your family.

You should pay particular attention to the insurance company that you choose, taking into account the following factors:

  • Investment of the savings part, which can be done either through investment funds or through a conventional increase in capital thanks to a share in the insurance company's earnings (surplus). This choice depends on the contract duration.
  • Insurance companies investment partners
  • Total or partial surrender value, with or without guarantee, to be able to provide the liquidity required for potential extensions, property renovations, or an extraordinary mortgage amortisation
  • Technical rate (which may vary by more than 0.5%) and guaranteed capital.

Understand that in 3rd pillar insurance, you have to differentiate between linked 3A and private 3B pension plans. The primary distinctions are clear when you consider the level of taxation, contract duration, beneficiary clauses as well as the choice of how funds are invested. DL MoneyPark advises and accompanies you through diverse products according to your specific needs.


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