Financial security: how to protect what’s important to you
Life seldom goes to plan. With the right insurance, you can protect yourself and your loved ones in the event of disability or death. Find out how you can protect yourself against risks, close coverage gaps and plan your financial future.
What are your financial planning needs?
You want financial security for yourself
Nobody likes to think about illness or accidents. But if life suddenly changes direction, financial security is particularly important. With the right insurance, you can protect your income, remain independent and create a reliable basis for your future.
Possible risks
- Loss of income due to illness or accident
- Ongoing costs
- Savings run out sooner than expected
- Long-term plans are difficult to implement
How to protect yourself financially when living alone
- Disability insurance: secures your income if you are unable to work for an extended period of time.
- Term life insurance: helps to cover financial obligations such as mortgages or other ongoing costs in the event of your death.
- Power of attorney: deals with your personal, financial and legal affairs if you lose the capacity to make decisions (e.g. due to an accident or illness)
- Private pension schemes: allow you to build up financial reserves and close coverage gaps.
- Benefits analysis: identifies where action is needed and which solutions are best suited to your situation.
So you can stay flexible
Early planning improves your financial security, ensuring you will be able to act even in the face of unexpected events.
You’re getting married
Your rights and obligations change when you get married or enter into a registered partnership. This also affects your financial security. It’s a good time to review your financial planning and insurance arrangements together.
Possible risks
- Possible coverage gaps due to illness or accident
- Loss of income in the event of death
- Uncertainties regarding inheritance law
- Outstanding questions about home ownership
How to protect yourself financially in marriage
- Insurance payable on death: provides financial relief for dependants if the insured person dies.
- Disability insurance: secures your income in the event of a long-term illness or following an accident.
- Benefits analysis: to adapt your financial protection to your new situation.
Planning together
After you get married, it’s worth reviewing the arrangements for your assets, your home and your retirement provision together.
You’re cohabiting
Many people assume their partner is adequately protected. This isn’t always the case. The rules governing the protection of unmarried couples differ from those applicable to married couples. Check for potential coverage gaps at an early stage if you want to protect yourselves as cohabiting partners. With the right insurance, life partners can protect each other financially.
Possible risks
- Loss of income due to illness, accident or death
- Financial difficulties paying rent, mortgages or ongoing expenses
- Limited benefits for life partners in the event of death
- Uncertainties regarding inheritance law
How to protect yourself financially when living together
- Insurance payable on death: protects your partner against the financial consequences of your death.
- Disability insurance: helps cover any income gaps following illness or an accident.
- Beneficiaries review : determine who receives benefits from your pension fund and Pillar 3a.
- Benefits analysis: highlights potential financial gaps for cohabiting partners.
Being there for each other – financially, too
If you’re cohabiting partners, you should regularly review your financial planning and insurance arrangements to ensure that your cover remains up to date.
You want financial security for your family
Having children brings increased responsibility. Whether you’re a traditional family, a blended family, a single parent or a rainbow family, housing, childcare, education and daily living all cost money. The loss of an income due to disability or death places a strain on the whole family. Assess potential coverage gaps and build up financial reserves to ensure your family’s financial security.
Possible risks
- Loss of income due to illness, accident or death
- Financial burden on your family in the event of your death
- Higher expenditure for childcare, education and living costs
- Difficulty maintaining your usual standard of living
How to protect your family's finances
- Insurance payable on death: provides financial security for your family in the event of a parent’s death.
- Children’s insurance: provides the child with financial protection in the event of disability as a result of an accident or illness and builds up capital for the future, such as for education.
- Disability insurance: secures your family’s income in the event of a long-term illness or following an accident if you’re no longer able to work.Benefits analysis: identifies coverage gaps and risks that could financially burden your family.
Financial planning grows with your family
Financial needs constantly change when you have children. A regular insurance check ensures your cover remains up to date.
You’re buying your own home
Home ownership usually entails long-term financial obligations. If you lose income due to disability or death, you may experience financial pressure. Clarify financial risks at the time of purchase. This allows you to better protect your property and your family.
Possible risks
- Mortgage payments become difficult to afford if you experience loss of income
- Ongoing costs put a strain on your family budget
- Financial difficulties in the event of your death
- You may be forced to sell your home
How to protect your home financially
- Insurance payable on death: helps relieve the financial burden on your family and secure the mortgage if an insured person dies.
- Disability insurance: provides income in the event of a long-term illness or following an accident if you are no longer able to work.
- Benefits analysis: identifies risks and helps assess potential income gaps related to home ownership.
Protect your home financially
Planning ahead secures your home for the long term and relieves the financial burden on your family.
You work part-time
Part-time work can allow you to spend time with your family or undertake further education or personal projects. At the same time, reduced working hours often have an impact on your benefits. Check at an early stage how well protected you are in the event of illness, disability and retirement. This will allow you to identify any coverage gaps and make appropriate plans to protect your financial future.
Possible risks
- Reduced occupational pension benefits
- Reduced income in the event of disability
- Reduced retirement pension
- Coverage gaps often only become apparent at a later stage
How to manage your finances when working part-time
- Private pension schemes: additional contributions into Pillar 3a help close retirement coverage gaps – and also save tax.
- Disability insurance: helps offset loss of income if you’re no longer able to work following an illness or accident.
- Benefits analysis: identifies the impact of reduced working hours on your retirement provision
Part-time work with foresight
Working part-time doesn’t automatically mean having less protection. A regular benefits review creates greater financial security for the future.
You’re setting up your own business
Business owners assume many financial risks themselves. If they lose income due to illness, accident or disability, they often miss out on the benefits that employees receive automatically. An early analysis of potential coverage gaps helps improve your family’s financial security.
Possible risks
- Loss of income in the event of long-term illness or accident
- Ongoing costs
- Loss of income for your family in the event of your death
- Reduced pension benefits
How to prepare financially for self-employment
- Disability insurance: protects against long-term loss of income due to illness or accident if you are unable to work for an extended period.
- Insurance payable on death: protects your family and business partners against the financial consequences of your death.
- Private pension schemes: help close coverage gaps and build up assets for retirement.
- Benefits analysis: identifies gaps in income, pension provision and insurance cover.
Taking your financial planning into your own hands
Business owners assume many financial risks themselves. Early planning helps to better offset financial risks and take targeted action to secure your future.
You’re planning your retirement
Retirement marks the beginning of a new chapter in life. At the same time, your financial situation changes. A good retirement plan helps you maintain your usual standard of living, allowing you to remain independent for longer.
Possible risks
- Reduced income after retirement
- Assets run out sooner than planned
- Rising health and care costs
- Difficulty maintaining your usual standard of living
How to prepare financially for retirement
- Private pension schemes: a personalised payout plan helps make targeted use of existing assets and creates financial security for your retirement.
- Pillar 3a: regular contributions save tax and build up retirement savings.
- Financial protection consultation: helps balance income, assets and expenses to ensure your financial security in retirement.
- Financial planning: provides clarity regarding your income, assets and expenses during retirement.
More scope for the future
Early retirement planning creates greater financial security and makes the transition to retirement easier.
Frequently asked questions about financial security
Certain life events change the need for protection. Review your benefits situation if a major change occurs:
- Marriage or cohabitation
- Birth of a child
- Separation or divorce
- Reduction in working hours
- Starting your own business
- Purchasing a home
Insurance payable on death or term life insurance provides financial protection for your family in the event of your death. You determine the benefit amount and beneficiaries. The agreed payout can provide immediate financial relief for surviving dependants, helping to cover ongoing costs, mortgage payments or loss of income.
Such cover is particularly important for unmarried couples. Cohabiting partners don’t receive a widow’s or widower’s pension from the AHV. Benefits from pension funds depend on the specific plan regulations. Insurance payable on death can partially or fully close this financial gap.
Insurance payable on death is also a good idea for business owners. It helps ease the financial burden on business partners and keeps the business going.
In short, insurance payable on death is worthwhile if other people depend on your income or you have shared financial obligations.
Disability insurance primarily protects your income. Disability insurance pays a regular private pension if you’re unable to work for an extended period due to illness or accident. It helps bridge financial gaps in cover from the AHV, DI and pension funds. This insurance is particularly important for business owners and individuals with no or limited protection from occupational pension schemes, such as students, parents with family responsibilities or young adults just starting their careers.
Many people only realise they have a coverage gap when their life circumstances change. Assess how much money would be available in the event of loss of earning capacity, disability, death or retirement. Compare the expected benefits from the AHV, DI, your pension fund and private pension scheme with your ongoing expenses. If these benefits don’t cover your costs, you need to take action to improve your insurance cover.
Typical coverage gaps include
- Your income is no longer sufficient following a disability.
- Your retirement pension fails to maintain your previous standard of living.
- Your family loses a significant portion of its income following your death.
- Part-time work leads to reduced pension fund benefits.
- Business owners have no or insufficient insurance cover.
- A mortgage or ongoing housing costs remain a heavy financial burden.
- Unmarried couples often have less financial protection in the event of death.
- Students, young adults and individuals without an occupational pension plan often have limited disability insurance cover.
A personal financial protection consultation identifies the specific risks and gaps you should address.
Financial security is worthwhile if you want to ensure you’re able to keep your home in the event of disability or death. Disability insurance and insurance payable on death are often sensible options. They will provide a payout if you lose your income, allowing you to continue to pay mortgage interest, make repayments and cover ongoing costs. The right solution depends on your family, housing and income situation.
Tailored insurance solutions
We offer these insurance solutions together with our partner PAX. We would be happy to advise you personally and answer any questions relating to your financial security.
Do you have questions?
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