What should you do in the case of an illness or accident which renders you unable to work for a long time? It is important to think about this question.
In Switzerland, contrary to what one might think, the insurer is only obliged to pay part of the salary in the event of a long-term absence. In addition, this is only valid for a certain time. It is in this type of situation that loss of earnings insurance is important in order to fill the financial gap.
This is particularly crucial for the self-employed, who are not covered by any employer and must themselves ensure that they take out adequate loss of earnings insurance.
There are two types of loss of earnings insurance:
- Non-life insurance: the insured daily allowance is paid up to the maximum AVS salary prior to incapacity for work. This is the most common variant.
- Sum insurance: the insured daily allowance is paid regardless of the actual loss of earnings. This variant is suitable for the self-employed as well as stay-at-home moms or dads.