Term Life Insurance Comparison 2024

The two main categories of life insurance are term life insurance and cash value life insurance. Term life insurance pays out a death benefit if you die within the insurance term.

The life insurance comparison on moneyland.ch only includes term life insurance offers.

Cash value life insurance uses insurance as a savings or investment vehicle. Cash value builds over time as premiums are paid, and is paid out as an insurance benefit when the policy matures. Cash value life insurance may be bundled with term life insurance (known as mixed life insurance in Switzerland) or it may be offered alone without any life insurance (known as savings insurance in Switzerland). Cash value life insurance offers are not included in the moneyland.ch life insurance comparison.

Mixed life insurance which combines term life insurance with some form of saving (for retirement, for example) is generally not recommended. Stand-alone cash value life insurance is also not a good investment in many cases. For this reason, cash value life insurance offers are not included in the moneyland.ch life insurance comparison.

Cash value life insurance is typically complex and untransparent. A large portion of the premiums you pay goes to cover administrative costs, so with many policies the guaranteed insurance benefit is lower than the sum of premiums paid. Many cash value life insurance policies yield interest on your cash value or invest cash value to generate returns. But there is no guarantee that the interest or returns earned will make up for the administrative costs. If you terminate your life insurance policy ahead of schedule, you will typically lose a lot of money.

Saving with savings accounts, pillar 3a retirement accounts, or vested benefits accounts is a better move in most cases. You can use the comparisons on moneyland.ch to find the best savings accounts, pillar 3a accounts and vested benefits accounts.

In many cases, investing with retirement funds, asset management services or directly using online brokers is more affordable than investing through cash value life insurance policies.

Getting term life insurance can make financial sense in some cases. For example, if you have dependents who you provide for, getting term life insurance to protect them from the financial consequences of your death can be beneficial.

Specific examples of when getting term life insurance can make sense:

• To secure a mortgage. If your death would result in your dependents having difficulty meeting mortgage payments, you can insure your family’s home against that risk using term life insurance. In the event that you die, the death benefit can be used to pay off the mortgage.
• To pay for your kids’ education. A parent with dependent children can use term life insurance to cover the costs of raising and educating their children in the event of their death.
• As a safeguard for business partners. You can protect a business partner against the financial consequences of your untimely death by getting term life insurance and naming them as the beneficiary.
• To financially safeguard a spouse or partner who is financially dependent on you.

The best term life insurance for you is the cheapest insurance which matches your profile and needs. But you should take time to consider your actual needs. A primary consideration is whether you need a constant benefit or a decreasing benefit.

For example, the money owed to a bank for a mortgage or business loan decreases every year as you pay off the loan, so the insurance needed to cover it can also decrease each year. If you have dependent children and want to ensure that they will be provided for if you died, the insurance needed may decrease every year as the children grow closer to maturity. You will generally pay much lower premiums for decreasing-benefit life insurance because the insurance company’s risk declines with each passing year.

On the other hand, there are situations in which using a fixed death benefit makes sense, such as when you want to secure a dependent spouse or partner.

The minimum age requirement for taking out term life insurance is typically between 18 and 20 years old. But there are very few situations in which getting life insurance as a young adult makes financial sense.

Maximum age limits for life insurance are a more important factor. With most insurers, the maximum age at which you can take out life insurance lies between 60 and 65 years old. Some offers are only available to adults up to the age of 45.

The maximum age up to which you can keep a life insurance policy is also decisive. Typically, life insurance terms cannot exceed age 65, but some insurers let you keep life insurance up to the age of 70 or even 80.

Many term life insurance policies are available in two versions: a pillar 3a version and a pillar 3b version. Some term life insurance offers are only available in pillar 3b versions.

Pillar 3a term life insurance policies have limitations on how much you can pay in insurance premiums each year, who you can select as beneficiaries and the maximum age at which insurance ends, as per pillar 3a limitations. The benefit of pillar 3a term life insurance is that the pillar 3a tax deduction applies to insurance premiums. Pillar 3b life insurance policies are much more flexible, but are not tax-privileged (only the standard insurance deductions apply).

You can find detailed information about 3a and 3b life insurance here.

Many term life insurances are available in both constant-benefit and decreasing-benefit versions.

Life insurance with a constant benefit is very straightforward: If you die within the insurance term, the beneficiary receives a fixed, predetermined death benefit. This is the right model to use if you want the beneficiary to receive a fixed amount of money if you die.

Life insurance with a decreasing benefit is more complicated: The insurance benefit becomes lower with each year of the insurance term that passes. Because insurance coverage decreases as time goes by, the premiums are typically much lower than those you pay constant benefit life insurance. Decreasing-benefit life insurance is recommended if the financial risks associated with your death will decrease over time. This could be the case if you want to ensure that your dependents or partner can continue paying off a mortgage or loan after the loss of income resulting from your death, for example. Because the debt decreases as you make repayments, you need less and less money to repay the remaining debt as time passes.

You can compare the premiums of both constant-benefit and decreasing-benefit versions of life insurance policies with the moneyland.ch life insurance comparison.

That depends on whether you use a pillar 3a or a pillar 3b life insurance.

Pillar 3b life insurance policies do not normally have limitations on who you can name as the insurance beneficiary.

With pillar 3a life insurance policies, beneficiaries are, by default: your spouse, children, parents, sibling and other legal heirs as per pillar 3a inheritance rules.

Possible loan terms vary between life insurance policies. Some offers only let you pick from several fixed loan terms (10,15 and 20 years, for example).

Other life insurance offers let you specify the loan term in years (between one and 45 years, for example).

In every case, maximum age limitations – both for applications and for insurance terms – apply.

There are a number of factors which determine the premiums you pay:

• Your age at the time of getting life insurance.
• Your age at the end of the insurance term. In the case of life insurance which is renewed each year, your age in each year affects the insurance premium.
• The size of the death benefit.
• Whether the insurance has a constant benefit or a decreasing benefit.
• Your gender.
• Whether or not a premium protection insurance rider is included.
• Whether or not you smoke.
• Other health-relevant factors (like your BMI).

Insurance premiums for similar insurance coverage can vary broadly between insurance providers. In some cases, one life insurance provider may charge twice as much as another insurance provider for the same life insurance. Comparing life insurance offers can save you a lot of money.

Premiums are typically in the realm of several hundred Swiss francs per year. However, depending on your profile and the size of the death benefit, you can easily pay more than 1000 francs per year for term life insurance.

Yes. Many life insurance providers charge non-smokers much lower premiums. Life insurance premiums for smokers are often much higher – as much as twice as high as non-smoker premiums. The reason for this is that statistically, the risk of death is higher for smokers than for non-smokers.

Yes. The older you are when you take out life insurance, the higher your insurance premiums will be. The reason for this is that statistically, the risk of death increases with age.

If you use a life insurance with fixed premiums, the annual insurance premium is predetermined based on your age across the full insurance term. In this case, your annual premiums normally remain the same over the full term.

If you use a life insurance which is rolled over every year, the premiums may be adjusted year over year to match your risk of death. In this case, premiums increase throughout the insurance term.

Yes. Men typically pay more for life insurance than women. This is because statistically, the risk of death is higher for men than for women.

You have to pay insurance premiums every year over the full life insurance term. If you fail to pay your premiums, you will no longer be covered by life insurance. However, Swiss life insurance providers typically offer premium protection insurance as an optional rider for life insurance. This insurance covers the cost of your annual life insurance premiums if you become disabled. The markups you pay for adding this rider to term life insurance policies are relatively low, so adding this rider can be a smart financial move.

The terms and conditions of premium protection insurance vary between insurers. Coverage may include temporary disability and/or permanent disability. A waiting period typically applies from the time you become disabled, and life insurance premiums will only be covered from the end of this waiting period. Premium protection insurance lets you keep your life insurance until the end of the insurance term, even if you cannot afford to pay premiums due to disability.

Depending on the life insurance, you may be able to pay premiums monthly, quarterly, semi-annually or annually. Unless you have life insurance which is renewed on a yearly basis, the premiums remain the same throughout the full insurance term.

Mutual insurance companies pay out dividends to policyholders in years when they perform well. Typically, dividends are applied as discounts on insurance premiums.

Maximum death benefits can vary depending on the insurance provider and offer you use and on your personal profile. When you apply for life insurance with a very large benefit, insurance providers may request further information to determine whether the insurance is justifiable. You may also be required to get a medical examination when you apply for life insurance with a high death benefit.

Typically, you can choose a sum insured between 10,000 francs and 400,000 francs. Higher death benefits are generally available upon request.

Some life insurance let you add a gross negligence waiver to your policy. Some let you add premium protection insurance for unemployment. Some include complimentary benefits such as emergency medical transportation and/or search and rescue insurance.

Some term life insurance policies have a clause which lets you lets you get part of your premiums refunded when you terminate your life insurance ahead of the maturity date.

The terms and conditions of Swiss life insurance policies generally exclude coverage for deaths caused by active participation in civil unrest or war. Suicide is generally excluded during the first three years of taking out the life insurance, after which it is covered.

Yes. It is generally possible to take out multiple life insurance policies – either from the same insurance company or from different insurance providers. However, insurers may ask you whether you already have existing life insurance policies, or whether applications for life insurance have been turned down in the past. The insurance provider will then either accept or deny your application based on this information.

You can terminate term life insurance policies any time without penalty fees. That sets them apart from cash value life insurance, which penalizes you for early terminations. You can change term life insurances any time your situation changes or you find a cheaper offer for the same coverage.

Do not cancel your existing life insurance until your prospective new insurance provider accept your new application.

Yes. When you die, your life insurance beneficiaries must pay taxes on death benefits. Taxes vary between cantons and municipalities. In many cases, taxes can add up to around 10% of each death benefit.

The following insurance companies are listed in the comparison: Allianz Switzerland, Axa, Baloise Insurance, Generali, Helvetia, Mobiliar, SafeSide, SolidaVita, Swiss Life, Vaudoise, Zurich.