Daily sickness benefits insurance: What you need to consider

It is critically important that you ensure you are sufficiently protected to avoid suffering huge drops in income. If you have chosen the legal form of a sole proprietorship and are not employing any other people, you can take out an accident and daily sickness allowance insurance (with a maximum term of 720 or 730 days).

The time you have to wait after an accident or falling ill before the insurance pays out (the waiting period) depends on a variety of factors. Depending on your job and your financial situation, you may be able to bridge a long waiting period yourself and save on premiums. You should also make the amount of daily allowance dependent on your personal and family situation.

Long-term loss of earning capacity

However, you do not only need to protect yourself against short periods of being unable to work. We also recommend taking out a pension for loss of earning capacity that will provide financial protection in the event of an accident and illness and comes into effect no earlier than 12 months and no later than 24 months after the relevant incident. In the case of total disability, benefits from disability insurance (Pillar 1) depend on the years of contribution, income and possible education and care credits, and range from CHF 1,195 to CHF 2,390 per month. Please note that this calculation does not take any child’s pensions into account.

Getting advice pays off

It is worthwhile taking a good look at your pension certificate and clarifying where financial gaps can arise with an expert. This will ensure that you and your family are covered in an emergency and do not need to worry about finances.