Thomas Kohler and Martin Baggenstos are both advisors for newcomers to Switzerland and they deal with this and many other questions about insurance and pensions almost every day.
With questions like these it's important to completely clarify the needs and the actual situation involved.
The inability to earn resulting from an accident or illness: a significant difference
In the case of inability to earn resulting from an accident, benefits from disability insurance (IV/AI), accident insurance (UV/AA) and the pension fund may be claimed. These usually cover at least 80% of your annual income, up to a maximum of CHF 148,200.
Newcomers to Switzerland should protect themselves against inability to earn
Many newcomers – but also HR managers – do not realize that cover in the first few years is relatively modest, particularly in the case of inability to earn resulting from illness.
In these cases only the disability insurance and the pension fund would pay a pension. And in the first year of employment the employer is only obliged to continue paying a salary for three weeks.
For this reason several employers take out collective daily benefits insurance for their employees so that in the event of illness at least 80% of the salary will continue to be paid for two years.
Thereafter, newcomers are entitled to only a minimum disability pension and benefits from the pension fund. However, as several pension funds make their benefits dependent on the saved capital, this pension is usually not enough to cover ongoing costs.
Both advisors therefore recommend that their customers "should obtain information from their HR office about benefits in case of inability to earn. With this information we can then – together with them – estimate the additional need for benefits and offer them an insurance solution."
This type of solution also includes partners who look after the family as their main role.
Get connected with specialized insurance and pension advisors
Thomas Kohler and Martin Baggenstos are insurance and pension advisors. They work at Helvetia's Schwyz-Uri general agency and specialize in advising newcomers.
Helvetia Insurance has been one of Switzerland's leading insurance companies for over 150 years. Helvetia offers customized solutions for a wide variety of insurance needs including private pensions or occupational benefits, indemnity insurance and mortgages.
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