What is term life insurance - and who needs it?

March 24, 2025

Nobody likes to think about death. Do it anyway and deliberately provide for your loved ones. You will give your family, friends and business partners more certainty and fewer worries if and when the time comes.

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Security in case of death: Financial protection for your loved ones
Five reasons for choosing Term life insurance

Security in case of death: Financial protection for your loved ones

Death changes everything in one stroke – suddenly a father, sister or husband is gone. The emotional pain is difficult enough. Why compound it with financial worries? Nobody knows what the future holds. But at least you can provide for financial aspects with a term life insurance policy.

The sudden disappearance of the main breadwinner will leave a huge gap in the family budget.

Even a small annual premium can ensure the payment of a six-figure death benefit. Set the amount of this benefit carefully so it will cover your dependents' actual expenses: cost of living, ongoing education costs, mortgage payments, payments to buy out business partners or funeral costs.

Five reasons for choosing Term life insurance

Your children are the most important thing in your life. If something happens, you want them to have all their options open still – from an expensive apprenticeship to a long-awaited stay abroad or a costly university degree. They shouldn't have to do without or turn the household budget upside-down to realize their dreams.

The survivors' pension under the first pillar (AHV) is far from generous, even for married couples, with a cap at only CHF 2,520 per month. Often, benefits from the second pillar (BVG) are paid out too. But is that enough to cover all of the expenses? You can increase your loved one's budget today. Extra insurance is recommended if the person left behind cannot return to work quickly or can only earn a meager income.

Married or not, you want to be sure that your partner is provided for. Term life insurance is perfect for this purpose. Cohabiting partners, unlike spouses or registered partners, have no legal right to inheritance. They don't receive a widow's or widower's pension from AHV either, while pension funds (BVG) will only pay benefits if certain requirements are met.

Do you want your family to be free to stay in their home if they want? With a death benefit payment, your surviving dependents can pay off the mortgage in full or in part. Your family can decide for themselves how and where to move forward.

Are you the owner or a partner of a company whose success is heavily dependent on certain individuals? It costs very little for business partners to provide for each other's security and ensure the company's continued existence as a going concern.

Men from several generations plant a tree together.

Protection for Relatives
With term life insurance, you financially protect your family, life partner, or business partners in the event of death.

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Term life insurance: a simple process

It is easy to take out term life insurance.

First, select the death benefit amount and the period of insurance.
Then name a beneficiary to receive the sum insured in the event of your death.
Check whether you need constant or declining risk coverage.

You can calculate the premium for your desired insurance coverage online.

Discuss your current situation with a specialist to assess your needs and choose the right insurance coverage. This way, your dependents' living costs, mortgages, education costs, and funeral expenses remain manageable.

Are you dependent on another person's income? Consult an expert to insure that person and designate yourself as the beneficiary. Adjust your insurance coverage if necessary. A clear will also helps avoid uncertainties for the survivors.