What do we call disability?
In Switzerland, disability corresponds to total or partial incapacity to earn, presumed to be lasting, caused by damage to physical, psychological or mental health. It can be linked to an illness, accident or infirmity.
The notion is different from a simple work stoppage. Incapacity for work concerns your ability to carry out your current activity. Rather, disability measures the lasting loss of income possible on the labor market, after reasonably required treatment and rehabilitation measures.
AI: rehabilitation before pension
Disability insurance applies an important principle: rehabilitation takes precedence over annuity. Before granting a pension, the AI office examines the measures capable of maintaining, restoring or improving earning capacity.
An AI pension is examined when the person has suffered a work incapacity of at least 40% on average for a year without significant interruption and a lasting earning incapacity of at least 40% subsequently persists. The right to a pension arises at the earliest six months after submission of the AI application.
How the disability rate influences the pension
- A rate lower than 40% does not give right to an AI pension.
- At 40% disability, the pension corresponds to 25% of a full pension.
- Between 40% and 49%, the quota increases gradually.
- Between 50% and 69%, the pension corresponds in principle to the disability rate.
- From 70%, a full pension is granted.
LPP and LAA: important supplements
If you are affiliated to a pension fund, the LPP can pay a disability pension in addition to the AI. The right depends in particular on the fact that the health problem occurred during your membership and the benefits provided for in your pension plan.
If the disability results from an accident, LAA accident insurance can also intervene. For employees, the LAA is obligatory. Self-employed people often have to organize their accident and loss of income coverage themselves, otherwise the gap can become very significant.
Why private protection remains useful
AI, LPP and LAA benefits do not always cover usual income. Gaps are common in the event of illness, part-time work, high salary, self-employment, divorce, periods without contributions or minimal LPP coverage.
Private insurance can complete the system with an earnings incapacity pension, exemption from the payment of premiums in life insurance or security capital. The objective is to maintain essential costs: housing, family, taxes, health premiums and a reasonable lifestyle.
Situations where you should check your coverage
- You are independent or in a liberal profession.
- You work part-time or have multiple employers.
- Your family relies heavily on one income.
- You have a mortgage or high fixed charges.
- You have had periods abroad, without AVS contributions or without LPP.
- Your LPP certificate provides for a low or limited disability pension.
Points to compare before signing
- Definition of disability: incapacity in your profession or in a reasonably required activity.
- Trigger rate: minimum threshold from which a private pension is paid.
- Waiting time: period to be financed with your reserves or daily allowances before payment of the annuity.
- Illness and accident: inclusion or exclusion depending on your LAA coverage.
- Payment duration: until retirement, until the end of the contract or according to a specific limit.
- Coordination: avoid duplication and reductions linked to overcompensation.
Our support
Finwise analyzes your LPP certificate, your income, your professional status, your accident cover, your charges and probable social insurance benefits. We then compare private solutions only when they address a real gap.
Analyze my disability coverage See earning incapacity Understanding my LPP