The situation of a self employed worker

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1

Hi everyone,

First of all I want to thank you for all the advise you give here to people trying to understand the financial aspect of living in this beautiful contry.

I would like to share with you my situation and the possible strategies I have in mind, of course your feedback is desired and most welcomed.

I am a 36 years old independant worker, permit C, I just founded my own cabinet after working here for more than 5 years.

I am married and I am expecting my second child. I work in Geneve and I live in Vaud.

Before this I was never bothered in investing and finding a solution for my retirement(silly me!), but now given my family situation I am trying to find a suitable solution to protect my loved ones in case things go south.

I do not have a second pillar, I have only a third pillar a invested with VZ. I am planning on transfer to VIAC or finpension and open 5 of them as many of you recommend.

I terms of disability or death my main concern is: should a get pure life insurance or should I go for a LAA (UVG) + LPP(BVG)?

I dont find very appealing investing money into a second pillar. Should I stick with the three 3a pillars and maybe start a 3b pillar?

I would be very grateful for any advice you could give me.

Thanks in advance.

2

I’d go for simple pure life insurance. If you shop around, you can get $400k-$500k coverage for around $500 per year.

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3

You can also check insurance offers from VIAC. At least they are transparent.

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4

Thanks for your answers, VIAC looks like a great option maybe I will move everything there.

Regarding the first two years after accident or sickness of daily sickness insurance, do you think it is better to just have an LAA or a daily sickness insurance with accident cover (maybe with a 60 days delay)?

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You should get way more than just a pure life insurance. What if he gets disabled? What if he gets sick for 1 year? I would get:

  • Disability insurance (30-40k/year increasing by 1-2%/year), for example from SwissLife.
  • Sickness insurance with 14-30 days delay
  • Life insurance (500k) for death and disability
  • 3a with Viac or Finpension, paying in the maximum amount (20% of net salary)
  • No 2nd pillar as they aren’t worth it when you are self-employed
  • Accident insurance with your health insurance (only covers costs of the accident btw)

Let’s assume you have an accident with your car. Accident insurance covers your health costs. Then you realize that you are very injured and this will take longer. Sickness insurance kicks in. 2 years after the accident you are declared disabled. At this point the sickness insurance will stop and your disability insurance will kick in, IV-rent as well. As the disability insurance is only till retirement age and you aren’t able anymore to contribute to retirement accounts anymore, you need to save/invest enough that you can live off your money once you’re 65. Because IV won’t be close to enough to cover the gap. That’s where the life insurance money comes in. You invest those 500k.

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Thanks for the insight @Cortana, I agree with you everything makes more sense now.

Would you link a pillar 3b to the disability insurance? I am reluctant to do so, but maybe there is more benefits that I dont see.

Have a great day everyone.

7

In my experience (my GF is self-employed) you get the best deal if you get every insurance separately. But getting a disability insurance and a life insurance combined (within 3b, so yearly cancellation possible) might get you a better deal, you have to check. Just never do 3a (or generally saving within the 3rd pillar) with insurances.

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8

Maybe I will be more clear. I didn’t mean he should get only life insurance, but simple separate insurances to cover the different things.