Single Premium Whole Life
If you want to provide for inheritance (e.g. cover inheritance taxes), you can either consider
a Swiss Annuity or a single premium whole life policy. The latter includes some life
insurance coverage so that the death benefits will be higher than under an annuity. But
the latter has better cash values and is not restricted to capital preservation during your
lifetime.
Annual Premium Endowments
This policy was tailor made for people who want to systematically accumulate Swiss francs and, at the same time, need life insurance coverage. Here is how it works: you agree to pay the insurance company a fixed premium every year up to the maturity of the policy. The company then guarantees to pay the face amount (total of premiums + interest + dividends minus the cost of the life insurance coverage) to you at the maturity or to the beneficiaries in the event of the insured’s premature death. Annual premium endowments make good sense for younger families (breadwinner’s age: 25-45 years).
Annual Premium Whole Life
We do not recommend this policy as an accumulation vehicle – the annual premium endowment is better for that purpose. However, whole life (ordinary life) is the best program if you need life insurance coverage in old age. In our opinion, a whole life policy is more cost-efficient than term insurance if you are aged between 55-70 years.
Term Insurance
You can choose between level or annually decreasing term life policies. Only consider Swiss term insurance if you have to cover a liability that is denominated in Swiss francs (loan, mortgage, etc.). If such liabilities do not exist, take out a term insurance back home where the rates may be as competitive as in Switzerland.
However, if you are aged between 55-70 years and therefore a candidate for whole life, dealing with a Swiss company can be viable: whole life builds up cash and you will be able to take advantage of the positive aspects of the Swiss franc.
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