One-time investment in Swiss life insurance vs regular premiums

Does it make sense to invest in a life insurance policy which can be bought for a single, large premium instead of ongoing, regular premiums?

Hi there,

Buying insurance by making a single, large payment can be beneficial under certain circumstances. For example, if you come into a large amount of money (through a lottery or inheritance, for example), investing part of that money in a life insurance policy which pays out a pension in your old age or lets you save for retirement (whole life insurance) can help you save on taxes and achieve a higher growth rate than you could using a savings account.

If you are primarily interested in protecting your family or an investment with a death benefit rather than saving for retirement - as is the case for term life insurance - paying upfront has few financial benefits. However, depending on your wealth tax situation and the interest or yields you could earn through holding your money, paying upfront rather than holding the money can be beneficial in some cases. Getting advice from a tax advisor for your specific situation can be beneficial.

Important: When you invest in permanent life insurance via a single, large contribution, a stamp tax equal to 2.5% of the contribution applies. This stamp tax does not apply to contributions paid annually, as long as the largest contribution is no more than 20 percent higher than the lowest contribution you make.

Best regards from Moneyguru

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