5 Good Reasons to Choose Risk of Death Insurance

The risk of death insurance: maximum security at a reduced price

Nobody likes to think about death. So do it anyway and plan for the future consciously to ensure greater clarity and less worry for family, friends, and business partners, even in the most severe cases.

One death is enough, and suddenly everything changes because the father, the sister, and husband are no longer there. All the better if economic worries do not add up to emotional pain. Nobody knows what the future holds, but at least the financial aspects can be planned in time, thanks to the risk of death insurance.

If the primary income is lacking overnight, a significant gap is created in the family income.

A reduced annual premium is sufficient to guarantee payment of the order of six figures in the event of death. Set an appropriate amount to cover your family's actual expenses: cost of living expenses, ongoing training costs, mortgage payments, payments to business partners, or funeral expenses.

FIVE GOOD REASONS TO CHOOSE RISK OF DEATH INSURANCE

1. Ensure a secure future for your children

Your children are the most important thing. Even in an emergency, they must not be deprived of their choice, even when the future involves expensive training, a long-awaited language stay, or a costly university course. Theirs must not be a life of renunciation, and the family cannot find itself on the brink of financial meltdown at every significant expense.

2. Ensure your spouse

With a maximum of CHF 1,912 per month, the first pillar survivors' pension (AHV) is not very generous, even for married people. Often there is also an entitlement to benefits from the second pillar (BVG). But is it enough to cover all expenses? Today you have a real opportunity to increase this budget. It is advisable to choose additional coverage if the survivor does not find work immediately or otherwise receives a reduced income.

3. Cohabitant

You want your partner to be fully protected, even without a marriage certificate. The risk of death insurance is the ideal tool. Unlike marriage and registered partnerships, cohabitants are not legally entitled to an inheritance. Furthermore, they do not receive a widower's pension from the AHV, and pension funds (BVG) only pay a stipend in some cases.

4. Keep the home owned.

Do you want to avoid at all costs that your family is forced to leave their home? With the risk of death insurance, survivors can choose whether to repay all or part of the mortgage. Your family, therefore, has the freedom to decide how and where to plan their future.

5. Stability for the company

Are you the owner or partner of a company whose success is closely linked to the individual situation? At an affordable price, business partners can protect each other and ensure the survival of the business.

Risk of death insurance: this is how it works.

In general, taking out death insurance is simple: First, you choose the amount of the lump sum to be paid in and the duration of the contract. Then determine the beneficiary who will receive the insurance sum in the event of your death and at the same time check whether you need constant or decreasing protection against risks. Finally, the premium for the desired insurance coverage can be calculated online.

However, it is advisable to evaluate your current situation with a specialist and identify your needs together. This way, you can ensure that you are insuring the right people and choosing the right insurance coverage so that your cost of living expenses, mortgage payments, payments to business partners, ongoing training costs, and funeral expenses remain—Fundable for your family members.

Are you dependent on another person's income? Then, there are possibilities to insure the other person and enjoy personal benefits: rely on the advice of an expert. Also, keep your flexibility: if any aspect of your life changes, you can always change your insurance coverage.

In addition to preventive measures of a financial nature, a clear will is also of great help to family members. If the distribution of the assets is precisely established, the survivors will have no doubts about possible claims.

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Advice: will

When is it convenient to make a will?

There are several reasons why it is appropriate to make a will. The will is especially recommended for families and cohabiting couples.

Distribution of assets

Under Swiss law, the inheritance is divided equally between the spouse and the descendants. Consequently, it is possible that the surviving spouse has to sell the house to pay their children the share due by the provisions of the law. To avoid this situation, it is possible to establish with a marriage or inheritance contract certified before a notary which patrimonial mass to be allocated to the surviving spouse and the inheritance division.

Cohabiting couples

For inheritance, the cohabiting partner must, in any case, appear in the will and must also be aware of it.

Managing the distribution of assets can be complex in most cases. Therefore, it is advisable to discuss estate planning with an expert, such as a lawyer, notary, or trustee.

How do you write a will?

The will must be drawn up in one's hand or authenticated by a public deed. It is also advisable to write it simply and understandably. 

It is essential that the will, complete with date, is written entirely by hand and in one's hand and is duly signed. Alternatively, you can have the will drawn up and authenticated by a notary, for example, if you can no longer write or if the case is very complex.

It is also essential that the text is as clear and straightforward as possible and does not lend itself to diverging interpretations. An example: «I leave the right to all the heirs. The remaining assets are reserved for my spouse ».

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How do I ensure that the will is found?

It is essential that the right people find the will and that no one can steal the document. 

Who knows how many wills have disappeared because they were hidden in some drawer and never came to light. Experts advise against keeping the holographic will in your private home or bank safe, as it could get lost or fall into the wrong hands.

Who has the will drawn up and authenticated by the notary can also choose to entrust its custody to the same. Alternatively, you can contact the municipality to find out where to deposit the will publicly. In each canton, a body is responsible for the public custody of wills, generally the municipality of residence.