Why protect your income?
Earning incapacity refers to a total or partial loss of the capacity to generate an income, following lasting damage to physical, psychological or mental health. It can result from an illness or an accident.
In Switzerland, AI, LPP and LAA can intervene, but the benefits do not always replace usual income. In the event of a long-term illness, the gaps are often greater than in the event of an accident, especially for the self-employed, part-timers, young families and high earners.
What social insurance covers
- AI: obligatory for people domiciled or working in Switzerland. A pension is examined after an incapacity to work of at least 40% on average for one year and a lasting incapacity to earn.
- BVG: supplements the AI if you are affiliated to a pension fund. In 2026, compulsory affiliation in principle concerns employees subject to AVS from CHF 22,680 of annual salary with an employer.
- LAA: covers employees against professional accidents and, from 8 hours per week with the same employer, non-professional accidents. It does not cover illness.
- Maintenance of salary or daily allowances: useful in the short term, but limited in time depending on the employment contract, the CCT or the employer’s insurance.
What is a private earning incapacity pension for?
Private insurance pays a regular pension when your earning capacity is permanently reduced. It complements public and professional benefits to help you pay rent or mortgage, family expenses, health premiums, taxes and everyday expenses.
Depending on the insurers and the conditions, the annuity can start at a certain degree of incapacity, for example 25% or 40%, with a full benefit around 66.6% or 70%. The waiting period is chosen upon signing: the shorter it is, the higher the premium is generally.
Illness or accident: the difference is essential
Many people think they are protected because they have accident insurance. However, a serious illness, burnout, cancer or psychological damage does not fall under the LAA. For these situations, protection depends mainly on AI, LPP and possible private insurance.
For the self-employed, the gap can be even greater: accident insurance is not always compulsory and loss of earnings due to illness must often be organized separately. A personalized analysis ensures that daily allowance, disability pension, life insurance and 3rd pillar protection are not confused.
Who should do a check?
- Self-employed people, founders and liberal professions without solid collective coverage.
- Part-time employees or with several employers.
- Families with children, private credit or mortgage.
- People whose income clearly exceeds the portion well covered by the compulsory LPP.
- Couples where a single income finances a large part of the household.
- Cohabiting people, as partner protection may be limited.
Parameters to choose carefully
- Pension amount: cover the actual gap, without exceeding insurance limits and without paying for unnecessary coverage.
- Waiting time: 3, 6, 12 or 24 months depending on your reserves, your employer and your loss of earnings health insurance.
- Illness alone or illness and accident: to be decided according to your LAA status and your activity.
- Pillar 3a or 3b: 3a can offer a tax advantage, 3b provides more flexibility.
- Release of premiums: the insurer can continue to finance certain premiums if you are unable to earn.
- Health questionnaire: it must be completed precisely to avoid exclusion or litigation in the event of a claim.
Our support
Finwise starts with your reality: income, charges, LPP certificate, accident cover, salary maintenance, daily allowances, family status and projects. We then compare the contracts according to the annuity, waiting period, exclusions, fees, taxation and flexibility.
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