Starting a family brings with it many positive changes. But deaths, whether caused by accident or illness, can put an end to family happiness. The death of a loved one is a very emotional time, and you should not also have to worry about finances. In this part of the «In case of an emergency: protecting your family properly» series, we explain how to make sure you have adequate financial protection.
DEATH: ENSURE YOUR SURVIVING DEPENDANTS ARE PROTECTED
Social insurance offers good protection for married parents in the event of death. You can expect the following benefits:
- AHV (old-age and survivors’ insurance) pays the surviving parent a widow’s or widower’s pension in the event of death. The children receive an orphan’s pension.
- Accident insurance also pays widows and widowers a pension – provided the deceased person was covered. This is automatically the case for employees. Children also receive an orphan’s pension.
- The pension fund also pays widow’s or widower’s pensions and orphan’s pensions. The amount of these pensions can be found in your pension certificate.
You can find out more about widows' and widowers' pensions in our article «Social insurance in the event of death – what you need to know».
PARENTS LIVING TOGETHER IN AN UNREGISTERED PARTNERSHIP ARE AT A DISADVANTAGE
Neither old-age and survivors’ insurance nor accident insurance pays a pension to surviving partners. The pension fund can decide at its own discretion whether to pay unmarried partners a pension. The parents’ civil status does not matter when it comes to orphan’s pensions: old-age and survivors’ insurance, accident insurance and the pension fund of the deceased parent pay in all cases.
Tip: Ask your pension fund about the conditions under which your partner will receive a pension if you die.
PRIVATE PROTECTION WITH DEATH BENEFITS INSURANCE
If you want to provide yourself and your family with complete protection, it’s a good idea to conclude a death benefits insurance policy. If the insured person dies during the term, the insurance pays out the death benefit to the agreed person.
Good to know: The amount of this premium depends on the insured sum as well as the age and health of the insured person.
Under death benefits insurance, you can decide between a decreasing and a constant insured sum. In case of a decreasing benefit, the amount paid to the beneficiary continually becomes smaller. This makes sense if your children are nearly grown up, one parent is able to work more again and the protection under pillars 1 and 2 improves. A decreasing lump-sum death benefit is also a good option if you are simultaneously saving with pillar 3a. The constant amount makes sense if your risk will not change and you will rely on the full amount for a few more years.
Our insurance advisers will be pleased to help you choose the ideal protection for your family.
Would you like to learn more or get advice about death benefit insurance right away? Then arrange an advisory meeting with us.
Find out more
A loss of earnings in the family can lead to major financial problems. In part one of our “In case of an emergency: protecting your family properly” series, we explain how to protect yourself and your family against such risks.
What happens if the main breadwinner of the family becomes disabled? In part two of our “In case of an emergency: protecting your family properly” series, we explain the most important things to consider.
Do children also need to be insured? Which insurance policies should parents consider? In part three of our “In case of an emergency: protecting your family properly” series, you can read everything you need to know.