The return on your chosen investment fund is decisive for the maturity benefit of your life insurance. Historically, investments in equities achieve the highest returns over a longer period of time compared to other asset classes such as bonds, real estate, commodities, etc., but also have greater price fluctuations. 

Thanks to the chosen insurance solution, dividends are tax free, provided the insurance has been taken out for a period of at least 10 years.

If the CapitalFund insurance is chosen as a single premium, the maturity benefit and the capital gain are also tax free under certain conditions: This is the case if the term of the insurance is at least 10 years and payment is only made after the age of 60 and the contract was concluded before the age of 66. In addition, the policyholder and the insured person must be identical.

Unit-linked life insurance policies may be subject to price fluctuations; depending on the asset class and composition of the fund structure, the investments may fluctuate to a lesser or greater extent and may well lose value in the meantime. That's why a long investment horizon is important here. After all, investing in equities has consistently paid off in the long term over the past 100 years, even in times of war and crisis.

Maturity management ensures automatic risk reduction at the end of the insurance term: In the last few years before maturity, your capital is reallocated to an investment fund with a lower investment ratio. 

If the CapitalFund insurance is chosen as a single premium, a guarantee of 50 or 80 percent of the invested sum can be agreed, which is paid out as a minimum on expiry of the contract. Even if Zurich were to default, this money would be secured thanks to the tied assets.

With unit-linked life insurance, the current value of your fund investment is paid out at the end of the contract term. If the insurance is terminated prematurely, you will be paid the equivalent value of the units in your fund investments at the time of termination.

If the insured person dies before the contract expires, Zurich will pay the value of the investment at the time of death. If a guaranteed death benefit has been agreed, the agreed amount will be paid out as a minimum.

The value is determined by the value of the units on the day before the written notification of death, at the earliest at the end of the first month following the death.

1. Insurance coverage: With unit-linked life insurance, death cover can be built in. A fixed sum would then be paid out to the beneficiaries in the event of the policyholder's death. This protection is not available when buying funds units directly.
2. Tax advantages: In Switzerland, unit-linked life insurance policies can offer tax advantages, particularly with regard to income and inheritance tax. The income from unit-linked life insurance is tax exempt or tax privileged under certain conditions. Income from the direct purchase of fund units is generally subject to income tax.
3. Long-term savings incentives: Unit-linked life insurance requires a contract to be signed, under which the policyholder agrees to pay a certain premium on a regular basis. This encourages discipline when making deposits and ensures that the long-term savings goal is actually achieved.
4. Premium exemption: In the event of disability, Zurich assumes the premium payment after a certain waiting period, which means that the long-term savings goal is still achieved.
5. Privileges:
   a. Protection from debt: If your company has to file for bankruptcy, your life insurance money is not included in the bankrupt's estate and remains protected.
   b. You decide who gets the money: With an unrestricted pension plan, you can determine exactly who receives your money in the event of your death and avoid inheritance or insolvency claims.
   c. Tax advantages: By making contributions to restricted pillar 3a, depending on your situation, you can deduct up to CHF 7,056 or 20 percent (maximum CHF 35,280) of your income from tax in 2024. With the unrestricted pillar 3b, you cannot usually deduct contributions, but the payouts are tax free under certain conditions.

• Minimize risk: with life insurance, you can ensure financial security in case of unforeseen events.
• Private retirement provision: Build up targeted assets with a restricted pension plan (pillar 3a) so that you don't have to accept any reduction to your standard of living later on.
• Save with tax benefits: With the tax-privileged pillar 3a, you can not only make provision for your retirement, but also save taxes at the same time.
• Needs-oriented: Thanks to a variety of insurance products, you can find insurance coverage that suits your life situation and your individual needs.
• Profitable: Life insurance policies offer greater potential returns than conservative investments with low interest rates such as savings accounts – retirement provision is the new saving.
• Safe savings target: The fixed period and the premium help to achieve your defined goal and secure the capital you have saved for the future.

With a 3a policy, you can deduct the premiums from your taxable income year after year in your tax return and thus significantly reduce your tax burden. In return, you pay tax on the amount paid out. In the case of a 3b solution, the payout is tax free, provided the period of insurance is at least 10 years. 

If the CapitalFund insurance is chosen as a single premium, the maturity benefit and the capital gain are also tax free under certain conditions: This is the case if the term of the insurance is at least 10 years and payment is only made after the age of 60 and the contract was concluded before the age of 66. In addition, the policyholder and the insured person must be identical.

You can find tax tips for pillar 3b in our guide to saving taxes and in our article on the topic of pillar 3a tax payouts.

CapitalFund is very flexible:

• After three (pillar 3a) or five (pillar 3b) years, you can take a premium break – with full insurance coverage.
• You benefit from a coverage extension guarantee and can increase your premium at various times without a new health check: on marriage, birth of a child, purchase of a home or simply every 3 years.
• If you become unemployed or are no longer working, you can switch from pillar 3a to pillar 3b – at no additional cost.
• With a 3a policy, you have the option of making an additional payment once a year. This is interesting for self-employed people without a pension fund, among others, who can only calculate their income at the end of the year.
• You can extend the term of your 3a insurance until regular OASI retirement age – or even up to five years beyond that. Prerequisite: You must provide proof of earnings from gainful employment.

Zurich's unit-linked life insurance policies such as CapitalFund are very flexible: You can switch funds once a year free of charge. You also have the option of taking a premium break, switching from 3a to 3b free of charge if you take a career break or become unemployed, and making a voluntary additional payment once a year into the 3a solution if you want to increase your savings contribution further.

Whether someone perceives the fixed contract term and the agreed premium as a restriction depends on the person: it encourages financial discipline and helps policyholders to achieve their savings goals thanks to regular payments.

You can terminate your life insurance if you have an unrestricted pension plan. You will receive what is known as the "surrender value" of the policy. But think carefully: It is often worth taking out a policy loan in the event of a financial bottleneck, for example. If you cancel the contract, you will lose your risk cover and possibly also money. Find out what alternatives you have to termination.

In the case of restricted pillar 3a life insurance, it is often worth taking a premium break. Withdrawing the money in cash is only possible under certain circumstances, such as when moving abroad or buying a home for your own use. Take a look at other termination options here.