Disability Insurance
Protecting your income in case of illness or accident – the most important and most often overlooked insurance.
Why is disability so dangerous?
Disability is the biggest financial risk for working people. The probability of becoming disabled before retirement is five times higher than that of dying. Yet many people's coverage is insufficient.
Statutory benefits (IV and pension fund) cover a maximum of 60% of your last income – often significantly less. With an income of CHF 100'000, CHF 2'000-4'000 is missing every month. This loss of income can destroy livelihoods.
Private disability insurance closes this gap. We analyse your coverage, calculate your needs, and find the optimal solution for lasting protection of your standard of living.
Your benefits at a glance
Income protection
Your standard of living is maintained – even if illness or an accident means you can no longer work.
Protecting your assets
You don't have to dip into savings or tap into your retirement provision.
Closing the gap
The difference between IV/pension fund benefits and your income is covered.
Bridging the gap
Daily sickness benefits bridge the first months until IV benefits are clarified.
Flexibility
Various models: pension, lump sum, with or without premium waiver.
Self-employed
Especially important for the self-employed without automatic 2nd pillar coverage.
In-depth knowledge
Swiss coverage for disability
The Swiss system has several levels of protection: disability insurance (IV), as the 1st pillar, pays pensions for permanent disability. The pension fund (2nd pillar) supplements this with a disability pension. Together, these reach a maximum of 60% of your last income.
But: IV benefits are capped (around CHF 2'500 maximum), and pension fund pensions depend on accumulated capital. For higher incomes and younger people, the gap is correspondingly larger.
On top of that: the IV has become restrictive. Many applications are rejected or only partial pensions are granted. The waiting time for a decision is often 1-2 years. During this time, you need bridging coverage.
Daily sickness benefits: the first layer of protection
Daily sickness benefits bridge the time between loss of work and the IV decision. The employer pays at least 3 weeks of salary under the Code of Obligations (more depending on years of service). After that, daily sickness benefit insurance kicks in.
Typical benefits: 80% of salary for 720 days. The premium is often (partly) paid by the employer. Problem: the self-employed usually have no daily sickness benefits – here private provision is needed.
Important: daily sickness benefits end after 2 years. If the IV hasn't decided yet or only grants a partial pension, a dangerous gap arises. That's why a private disability insurance policy is also needed.
Private disability insurance
Private disability insurance pays a pension if you can no longer work on a permanent basis. It supplements the benefits from IV and the pension fund and closes the gap to your previous income.
Product types: pension (monthly payment until retirement), lump sum (one-off payout), or a combination. Pension insurance is usually more expensive but more comprehensive. Lump-sum insurance is cheaper, but the money must be managed yourself.
Important parameters: waiting period (how long until the first payment), definition of disability (own occupation vs. any occupation), indexation (does the pension adjust for inflation), premium waiver (do you still have to pay premiums while disabled).
Calculating your needs: how much do you need?
The calculation follows a simple principle: current net income minus expected benefits from IV and the pension fund equals the gap to be insured.
Example: net income CHF 8'000/month. Maximum IV pension: CHF 2'500. Pension fund disability pension (per pension certificate): CHF 3'000. Gap: CHF 2'500/month. This CHF 2'500 should be privately insured.
We calculate your individual needs based on your pension certificate and your income situation. We also take into account: savings rate (no more saving possible if disabled), mortgage, cost of children, and cost of living.
Self-employed: particularly exposed
Self-employed people without a pension fund only have IV as basic coverage. This means: a maximum of CHF 2'500 pension for full disability, no pension fund benefits, no daily sickness benefits.
The gap is correspondingly enormous. A self-employed person with an income of CHF 120'000 would only receive CHF 2'500 instead of CHF 10'000 monthly in the event of disability – a drop of 75%.
We strongly recommend the self-employed take out: voluntary pension fund coverage (optional) or comprehensive private disability insurance with daily sickness benefits. The premiums are tax-deductible and very cheap compared to the risk.
Avoid common mistakes
These are the mistakes we see most often in practice
Relying on the employer and the state
IV and the pension fund only cover 60% – for higher incomes, the gap threatens your livelihood.
Only having daily sickness benefits
Daily sickness benefits end after 2 years, and private disability insurance is missing for the time after.
Not making provisions as a self-employed person
Without a 2nd pillar and daily sickness benefits, disability threatens financial ruin.
Taking out coverage too late
With pre-existing conditions, disability insurance becomes expensive or impossible to get.
Checklist: your next steps
What you can do right now
Frequently asked questions about Disability Insurance
Answers to the most important questions
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