Selling Life Insurance Policies in Switzerland

Good day,

A quick question: Is it possible in Switzerland to sell a life insurance policy rather than surrendering it in exchange for its cash value?

This is possible in Germany and Austria.

Thanks and best regards

Hi there,

While a number of service providers serve the secondary life insurance market in Germany, the secondary market for Swiss life insurance policies is not well established. Life settlement investment products offered to Swiss investors are primarily based on U.S. life insurance policies.

However, there are alternatives which can help you avoid the heavy losses associated with surrendering your life insurance policy for its cash value.

If you are experiencing a financial squeeze and cannot afford to meet your premium payments, consider this option:

Place your life insurance policy on hold. Depending on the terms and conditions of your policy, you may be able to place it on hold. This option is typically offered by Swiss life insurance providers. While your policy is on hold, you are not required to pay premiums. The cash value of your policy remains intact and continues to earn interest. The disadvantage of putting a policy on hold is that its face value is adjusted to match the missing premium payments. Insurers may allow you to make additional premium payments after taking your policy off hold in order to close the resulting gap, and you should ask your insurer about this option before placing your policy on hold. If you place you policy on hold permanently, you or your beneficiaries will receive a reduced benefit based on the portion of premiums paid, but you lose far less than you would be surrendering the policy.

Best regards from Moneyguru

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