Risk insurance as effective protection in the event of death or disability
"I wish to live a long life in the best of health – but if something should happen to me, i would like to protect my relatives and business partners from financial damage!"
This quote could not be more apt in describing the purpose of risk insurance. By definition, the purpose of risk insurance is to cover financial shortfalls in the event of disability or death, and to protect family members or business partners from financial loss.
The pure (non-asset-building) risk insurance does not contain a savings component and therefore also no surrender value. Furthermore, pure risk insurance is characterized by a relatively low premium level and can be individually adapted to the needs of the policyholder.
Advantageous risk insurance through collective contracts
With the risk insurance of the swiss management association, insured members can effectively prevent the financial consequences of a stroke of fate. For this purpose, the swiss cadre association (SKV), in cooperation with elips life, offers a collective contract for risk insurance within the framework of the free pension pillar 3b for financial security in the event of death or disability. This is especially important for the self-employed and executives. Because after an unforeseen event such as death, accident or illness, serious financial burdens can arise, which in the worst case can mean the economic ruin of the injured party. In order to cushion this scenario as much as possible, a risk insurance policy is the ideal solution. The main advantages of risk insurance include
- Immediate financial security for dependents (spouse, life partner, and business partner)
- Premium waiver in case of disability due to accident or illness
- Freely selectable favors
- Guaranteeing the continuity of businesses in the event of death
- Security for the mortgage
- Securing a regular income in the event of disability
What risk insurance is available?
In risk insurance, a distinction is made between two different types of insurance: disability insurance and death benefit insurance.
Why actually take out disability insurance??
Being unable to work after an illness or serious accident can cause serious financial problems in addition to the emotional and physical strain. To make matters worse, in switzerland the benefits provided by occupational pension plans (BVG) and state insurance schemes are usually insufficient to maintain the accustomed standard of living.
Disability insurance should be adapted to the individual circumstances of life. Because this way, policyholders not only benefit from better and individually tailored insurance coverage, but also only pay in as many premium contributions as actually make sense.
Conclusion: in order to be able to protect yourself optimally against unforeseen events such as accidents or illness, it is advisable for every self-employed person to take out disability insurance.
Of course, disability insurance should not be the only risk insurance the self-employed and executives should think about first and foremost. It is therefore advisable to also take out insurance in the event of death. What exactly a death benefit insurance is and what advantages it offers will be explained in the next section:
Death benefit insurance – the risk insurance for the worst-case scenario
Death benefit insurance is pure death benefit insurance without a savings component, which is only paid out if the risk of death occurs.
In contrast to disability insurance, which only pays out benefits in the event of an insured event, death insurance provides protection against the financial consequences of the unforeseen death of the insured person. The insured capital can be chosen to be either constant or decreasing throughout the insurance period. Insured benefits are paid to beneficiaries only upon death. In order to guarantee immediate financial benefits to the beneficiaries (spouse, partner or business partner) in the event of death, it is advisable to take out an individual death benefit insurance policy, because the need to provide for the death of a spouse, partner or business partner can be very great. The needs of relatives and business partners could not be more different.
Conclusion: in order to cover the specific needs of spouses, life partners and business partners in the event of death, it is advisable to take out death insurance with an individual lump-sum death benefit. Especially for self-employed persons and executives it is important to know that their relatives and business partners are optimally insured.
The insurance offer of the swiss cadre association
To participate in the collective contract and thus benefit from the risk insurance with favorable premiums, formal membership in the swiss management association (SKV) is required. However, this only obligates you to pay a one-time entry fee of 50 swiss francs.
Who or what is the swiss cadre association (SKV)??
The swiss cadre association (SKV) from st. Gallen is the interest and professional association for self-employed persons and executives from all professions. The association was founded in 1988 "to promote the economic and professional interests of its members". Already more than 14,000 members (including family members, even more than 35,000 members) are registered.
Under this link the risk insurance premium can be calculated with the online premium calculator. Simply enter your name, date of birth and the desired start date of insurance and the premium calculator will generate the premium free of charge and without obligation.