Life insurance in Switzerland: Complete guide for expats

You might want cover that helps your partner or children manage day-to-day expenses, or a policy that takes care of bigger costs like paying off a mortgage or handling funeral arrangements. In Switzerland, policies are offered by both local and international providers, providing a wide range of choices.

For expats, however, the picture can look a little different. Your decisions may be shaped by how long you plan to stay, whether you meet residency rules, or how benefits can be passed on to loved ones living overseas. This guide walks you through some of the most popular life insurance options in Switzerland, so  you can decide what policy is best for you.

This guide is for information only. Different types of insurance are suitable for different individual needs, so always get professional advice and support to choose the right policy for your unique situation.

What is life insurance?

Life insurance in Switzerland sits within the third pillar of the country’s three-pillar pension system. Its main purpose is to protect against three financial risks: death, disability and the need for extra capital in old age. Depending on the type of policy, benefits can support your family after your death, replace income if you’re unable to work, or supplement your retirement savings.

The principle is straightforward. You take out a policy and pay either regular premiums over a fixed period or a single lump sum. In return, the insurer agrees to pay a set amount if an insured event occurs. For example, a payout may help your family cover daily expenses, repay a mortgage, or provide an additional income in retirement.

For international residents, life insurance can be especially valuable in financial planning. It helps ensure dependents abroad are provided for and gives flexibility to adapt as your circumstances change.

Types of life insurance available in Switzerland

Choosing the right policy starts with knowing the main options available. In Switzerland, life insurance generally falls into three categories, each with its own purpose and value depending on your stage of life and financial goals. Some people focus purely on protection, while others prefer a policy that also builds up savings or investment value over time.

Here’s a quick look at the main types you’ll find:

• Term life insurance: Affordable cover for a set period, often 10, 20, or 30 years. If you die within the term, your beneficiaries receive the agreed payout. If you outlive the policy, it simply ends without a return.
• Whole life insurance: Lifelong coverage that guarantees a payout whenever you die, provided you keep up with the premiums. It usually includes a cash value that grows over time and can be accessed during your lifetime.
• Universal life insurance: A flexible option that combines lifelong cover with an investment element. You can often adjust premiums and death benefits, while the savings component builds value that may grow depending on the investments linked to the policy.

Comparison of life insurance types in Switzerland

	Term Life	Whole Life	Universal Life
Coverage duration	Fixed term (10–30 years typical)	Entire lifetime	Entire lifetime (if maintained)
Premiums	Lower, fixed for term	Higher, fixed	Flexible, can adjust over time
Payout	Only if death occurs during the term	Guaranteed whenever death occurs	Guaranteed whenever death occurs
Cash value	None	Yes, grows steadily	Yes, linked to investments, may fluctuate
Best suited for	Covering specific needs, like a mortgage	Long-term stability and guaranteed legacy	Expats wanting flexibility and investment growth

Term life insurance

Term life sets a clear window of protection. You pick the length of cover, such as 10, 20, or 30 years, and if you die during that time your beneficiaries receive the agreed payout. If you outlive the policy there’s no payout, which is why it’s usually cheaper than permanent cover. In Switzerland you can choose a constant benefit that stays the same throughout, or a decreasing benefit that falls over time. 

Many households link the decreasing option to a repayment mortgage, so the cover shrinks in line with the outstanding loan. Premiums are usually level for the whole term, though some insurers use rolling premiums that increase with age. With certain policies you can also add indexation, so the cover grows in step with inflation.

Term life pros	Term life cons
✅ Lower premiums per CHF of cover than permanent policies ✅ Lets you match your cover to your real needs, for example a repayment mortgage or a fixed assignment length ✅ Simple to understand and compare, with quick set-up at many providers	❌ No cash value – if you outlive the term there is no payout ❌ Renewal later can be costly, and health changes may limit options ❌ Payout can lose purchasing power over time unless you add indexation

Whole life insurance

Whole life provides permanent cover. As long as you keep paying premiums, the policy stays in force for life, with a guaranteed payout for your beneficiaries whenever you die. Many Swiss providers also include a cash value element, which grows over time and can be accessed through withdrawals or policy loans if you need liquidity.

Because you’re paying for lifelong cover plus administration and a savings component, premiums are higher than for term policies with the same death benefit. Whole life often suits people who want stable, long-range protection and a legacy plan that doesn’t hinge on a fixed end date.

Whole life pros	Whole life cons
✅ Lifetime cover with a guaranteed death benefit ✅ Cash value builds over time and can be accessed if needed ✅ Predictable, long-term structure that supports estate and legacy goals	❌ Higher ongoing premiums than term life for the same cover ❌ Surrender charges and policy fees can reduce value if you exit early ❌ Adjusting cover later isn’t always straightforward and may be expensive

Universal life insurance

In Switzerland, universal life is usually offered as unit-linked cover. Part of each premium goes toward insurance, while the rest is invested in chosen funds, so the policy can build value over time. Within policy limits you can often adjust premiums or the sum insured, which adds flexibility if your income or responsibilities change. Some products include a guaranteed minimum death benefit when markets dip, while others focus more on investment growth.

Universal life pros	Universal life cons
✅ Flexible structure with options to adjust premiums and, in many cases, the death benefit ✅ Investment choices add growth potential alongside protection ✅ May allow extra contributions or premium holidays depending on the contract	❌ Market risk applies to the invested portion, and returns are not guaranteed ❌ If performance lags or costs rise, you may need top-ups to keep cover in force ❌ More complex than term or whole life, so it requires regular reviews

Life insurance requirements for expats in Switzerland  

If you’re legally living in Switzerland, you can usually apply for life insurance on the same terms as residents. Insurers will ask for a Swiss address and a valid permit such as B, C, or L. 

Cross-border commuters with a G permit may qualify for certain products, and if their Swiss income is subject to AHV/AVS, they can also use pillar 3a. This requires Swiss-taxable earnings and follows a strict beneficiary order, while pillar 3b is more flexible in both eligibility and who you can name. All Swiss insurers are supervised by FINMA.

Applications are straightforward: everyone completes a health questionnaire, and larger sums may require a medical exam. Thresholds differ by insurer, but checks often start from around CHF 400,000. Premiums depend on age, health, smoking status, the amount of cover and the policy term. Like in most countries, insurers can decline applications based on risk.

Age rules also vary. Pillar 3a typically starts at 18 and runs no later than retirement, while pillar 3b can allow later entry and coverage to continue longer. If you plan to relocate, many Swiss policies remain valid worldwide, though some require naming a Swiss contact or adjusting the insured sum. Always review the policy wording and confirm with the provider how your permit, earnings, and future moves affect eligibility and benefits.

How much life insurance do you need?

A straightforward way to work out your cover in Switzerland is to start with your family’s needs, then subtract what you already have. Add up the big items, like your mortgage balance, years of living costs you’d want to provide, childcare or education expenses, and one-off costs such as repatriation.

Next, deduct savings, investments, employer death-in-service benefits, second-pillar payouts, and any survivor’s pension from the Swiss first pillar (AHV/OASI). If your dependents live abroad, factor in currency conversion, transfer fees, and the impact of exchange rates on the real value of a CHF payout.

Before comparing quotes, do a quick sense check:

• Would this payout clear the mortgage and cover living costs for the years I have in mind?
• Does it align with what my partner or children would actually need if I weren’t here?
• For family living abroad, what does the payout look like after conversion and fees?

For a quick estimate, you can try tools from major Swiss insurers and comparison sites, like this one from Zurich. These let you test different sums insured and premiums, but they may not capture cross-border costs or multiple currencies. Use them as a starting point, then review your numbers with a provider or advisor.

Life insurance costs and premiums in Switzerland

Premiums depend mainly on the sum insured, policy length, your age, health and smoking status, and whether you choose level or decreasing cover. Extras such as a waiver of premium or riders can add to the price.

• CHF 274.80 for a 36-year-old with CHF 300,000 of cover
• CHF 402.20 for a 46-year-old non-smoker with CHF 300,000
• CHF 120.60 for a 26-year-old non-smoker with CHF 200,000. 

These are illustrations only, and Zurich notes that premiums on this product rise each year with age. For current figures, use an insurer calculator or comparison tools such as Comparis or Moneyland.

As an expat resident, you’ll usually be priced the same way as locals. Underwriting is based on the same factors, though larger sums often trigger medical checks. To keep costs manageable, match the term to your real needs, consider decreasing cover if you’re protecting a repayment mortgage, and always compare providers and non-smoker rates if they apply.

Buying life insurance in Switzerland as an expat

For most expats, buying life insurance is straightforward as long as you live in Switzerland and hold a valid residence permit. You choose a policy and cover amount, complete an application with a health questionnaire, and verify your identity and address. Many providers can issue simple risk cover online with payment by card, sometimes starting as soon as the next day. Larger or more complex applications go through full underwriting and take longer. If you want to buy pillar 3a cover, you also need Swiss-taxable earnings that are subject to AHV/AVS.

Typical steps

1. Compare policies and decide on the sum insured and benefit type (level or decreasing).
2. Submit an application and health questionnaire, with ID, Swiss address, and residence permit details. For pillar 3a, confirm AHV/AVS-liable income; for pillar 3b, name your chosen beneficiaries.
3. Complete any extra checks if requested – higher sums often trigger medical evidence.
4. Pay the first premium and receive your policy documents. Some online products use automated risk assessments for speed, while medical checks extend the timeline.

What documents are usually needed

• Passport or national ID
• Swiss residence permit and address
• Payment details
• Completed health questionnaire
• For pillar 3a: confirmation that your income is subject to AHV/AVS
• For higher sums: medical reports or tests if the insurer requires them

Employer-provided life insurance

In Switzerland, many employees are insured for both retirement and risk cover through their employer’s occupational pension scheme – the second pillar (BVG/LPP). If you earn above the legal minimum salary subject to AHV (CHF 22,050 per year in 2025), you are automatically enrolled. Contributions are shared, with employers covering at least half.

Pension fund rules define the benefits, which typically include retirement savings, survivors’ pensions, and a lump-sum death benefit, coordinated with AHV/IV. Employers can also offer supplementary plans that go beyond the legal minimum. For expats, this group cover often provides a baseline, with private life insurance used to close any gaps.

Occupational benefits are capital-based: your contributions are invested, building retirement assets over time. At retirement (age 65), savings are usually paid out as a monthly pension. Lump-sum withdrawals are also possible in certain cases, such as if you permanently relocate abroad, become self-employed, or buy residential property. The eventual pension depends on your accumulated capital and the fund’s conversion rate.

International life insurance vs local coverage

For most expats who are resident in Switzerland, a local Swiss policy is the simplest route. It’s priced and underwritten on the same basis as for locals, serviced in Switzerland, and issued by an insurer that’s supervised by FINMA. Many Swiss policies remain valid worldwide if you later relocate, although providers may apply conditions, so it’s worth checking portability before you sign.

If you move countries frequently or want a policy that travels with you regardless of where you live, international or “offshore” life insurance from specialist carriers can be an option. These products are typically issued outside Switzerland, which means local consumer protections and tax rules may not apply in the same way as for a Swiss-issued policy. Always check portability rules and how any payout would be taxed in each country involved.

	Local Swiss policy	International policy
Eligibility & oversight	For Swiss residents, issued by a FINMA-supervised insurer (including Swiss branches of foreign insurers).	Issued outside ofSwitzerland; generally not under FINMA unless sold by a supervised Swiss branch.
Currency & payments	Premiums and payouts are usually in CHF with a clear link to Swiss benefits and tax rules.	Often multi-currency; tax and reporting depend on your residence at the time of the claim.
Portability	Many policies remain valid worldwide if you move, sometimes with conditions.	Designed to follow you across countries, but check local recognition and taxation.
Admin & service	Local servicing and claims handling in Switzerland.	Servicing from the issuing jurisdiction or global hub – check service levels and language.

If you keep a policy outside Switzerland or pay in another currency, a multi-currency account can simplify things. Wise lets you hold 40+ currencies and receive money in 8+ with local details, and uses the mid-market exchange rate without a markup. For high-value transfers, Wise applies fee discounts above 20,000 GBP (or the currency equivalent) and provides dedicated support, which can help with recurring premiums or larger one-off top-ups.

Life insurance beneficiaries and international considerations

You can usually name beneficiaries who live abroad. With pillar 3a, the beneficiary order is set by law (OPP3) and payouts go directly to that list rather than into the estate. With pillar 3b, you typically choose any person or organisation. Always check your policy for any country-specific restrictions or document requirements for an overseas claim. 

Tax rules depend on the pillar, product type, canton and where the beneficiary lives, but beneficiaries abroad may also face local tax on the payout. Swiss policies can pay claims worldwide, but cross-border claims will need certified documents as well as potential translations, and currency conversion can affect the final amount.

Life insurance when moving countries

If you leave Switzerland, whether your policy continues depends on the insurer, the product, and your new country of residence. Many Swiss policies remain valid worldwide, but conditions may apply –  such as naming a Swiss contact, adjusting the cover, or arranging premium payments from abroad.

Pillar 3a life insurance is tied to Swiss-taxable earnings, so it usually can’t continue if you leave permanently. Private pillar 3b policies, on the other hand, are more flexible and might be able to be maintained abroad.

Before relocating, check portability, payout currency and the documents needed if a claim arises outside Switzerland. If your policy cannot be maintained, consider new cover in your destination or an international plan to avoid a gap.

Tax implications of life insurance in Switzerland

How life insurance is taxed depends on the pillar and where you live. Pillar 3a payouts are taxed separately from income at a reduced rate, while pillar 3b is governed by cantonal rules: surrender values usually count as taxable wealth, and the treatment of death benefits varies.

Switzerland has no federal inheritance tax, and many cantons exempt spouses and children. But if your beneficiary lives abroad, they may face tax in their own country, and currency conversion can affect the final amount. Because the details differ widely, it’s worth checking cantonal rules and seeking advice before choosing a policy or naming beneficiaries.

Life insurance and estate planning

In Switzerland, life insurance can sit alongside your will to help look after the people you choose. Pillar 3a benefits are paid directly to the statutory list of beneficiaries and are not included in the estate, while pillar 3b lets you name beneficiaries more freely. 

Cantons, not the federal government, set inheritance tax and many exempt spouses and direct descendants, but details vary by canton and policy type. If you’re structuring cover as part of an estate plan, it’s sensible to confirm the local rules before you sign. Cross-border families should also think about which country’s succession law applies and how a payout will be handled if heirs live abroad. 

Planning and managing international assets can mean moving a large payout across borders. If you need to send money overseas, Wise can help. You can hold and pay in 40+ currencies with a multi-currency account, receive with local account details in several currencies, and send at the mid-market exchange rate. Transfers over 20,000 GBP (or the currency equivalent) qualify for fee discounts and a dedicated support team, with high limits that typically reach around 1 million GBP or the equivalent.

Common life insurance mistakes to avoid for expats

Before you pick a policy, watch out for these frequent pitfalls that trip up international families in Switzerland:

• Picking the wrong type of policy: Some contracts aren’t portable if you move, or may not align with your residence permit.
• Underestimating costs: Relocation, childcare or schooling can make real needs higher than expected.
• Forgetting currency risk: A payout in Swiss francs can shrink after conversion or through transfer fees.
• Not updating beneficiaries: Pillar 3a follows a fixed legal order, while pillar 3b lets you choose, so always review after any major life changes.
• Letting cover lapse: Moves abroad often cause missed premiums – set up payments that work internationally.

Overlooking tax and paperwork: Cantonal rules, foreign taxes on beneficiaries, and claim documents abroad all affect how smoothly benefits are paid.

Life insurance claims process

If a loved one dies, the first step is to contact the insurer or broker to report the death. Share the policy number if you have it, along with basic details such as the date, place of death and your contact information. The insurer will confirm what they need and assign a claims handler.

You’ll usually be asked for an official death certificate, ID for the beneficiary, bank details for the payout and documents proving entitlement. For accidental deaths, medical or police reports may also be required.

If the death occurred outside Switzerland, insurers typically request certified copies and translations, and sometimes an apostille. Once everything is approved, the payout is made by bank transfer in the policy currency. Timelines vary, but straightforward claims are often settled quickly once all documents are in place.

Getting professional advice in Switzerland

For a policy that fits your situation, speak with a licensed insurance broker or an independent adviser who works with expats. You can check that an insurer or intermediary is supervised using FINMA’s public register, and ask your employer’s pension fund for a clear summary of any death-in-service benefits so you only buy the cover you need.

For tax and estate questions, a Swiss tax adviser and, if needed, a notary or estate lawyer can explain the rules in your canton and how cross-border issues might affect beneficiaries. Official guidance on consumer protections is available on FINMA’s website, and cantonal tax offices publish details of withdrawal taxes for pillar 3a and inheritance rules for local residents.

Helpful resources

FINMA public registers: Check insurers and insurance intermediaries authorised to operate in Switzerland. 

Federal Social Insurance Office: Official guidance on survivors’ pensions from Switzerland’s first pillar.

Ch. ch – Wills and inheritance: Swiss government portal explaining wills, contracts of succession, and how inheritance rules work

Ombudsman of Private Insurance and of Suva: Free, impartial help if you have a dispute with a private insurer in Switzerland.
Comparis (EN): Swiss comparison site with overviews of life insurance types and quotes; useful for sense-checking offers.

Conclusion

Life insurance in Switzerland is easier to navigate once you know the basics. Think first about what role you want the cover to play, then weigh up the policy types and how pillar 3a or 3b fit your situation.

For expats, it’s especially important to watch the details – beneficiary rules can differ across borders, tax is set at cantonal level, and a CHF payout may look very different after you’ve taken conversion into account. If anything feels unclear, it’s worth getting an adviser to check how your permit status, pension entitlements, or future moves abroad might affect your cover.

When it comes to moving money, whether that’s paying premiums from abroad or sending a payout to family outside Switzerland, Wise can help. With a multi-currency account you can hold and pay in 40+ currencies at the mid-market exchange rate, with local account details in several currencies for smoother transfers. Larger payments also come with fee discounts and support from a dedicated team, with limits that usually reach 1 million GBP or the equivalent.