The most important forms of insurance for singles

The most important forms of insurance for singles

As a single person you make your own decisions, but you are also solely responsible for your actionsand your living costs. A broken glass of wine at your friends’ house – not a big deal. But what if you cause a car accident or your suitcase is stolen?  Or if you fall ill and become unable to work? All of this can be insured so that you, as a single person, are not left alone in an emergency. 

Insurance cover for singles

Damage can happen quickly and can cause unexpected costs. Suitable insurance cover protects you against unpleasant surprises and supports you in the event of disputes and legal issues. 

Liability 

The liability insurance covers costs if you injure other persons or damage objects belonging to third parties.

• You borrow a friend's camera and damage the lens.
• In the bathroom of your rental apartment, the perfume bottle falls into the sink and damages it.
• When mountain biking during the holidays, you injure a hiker in a collision in the forest. 

Household contents

Household contents insurance covers costs if your own property is damaged or stolen at home and protects you against the financial consequences. You can also insure theft outside your own home.

• A heavy thunderstorm does damage and submerges your cellar. Goods stored there become unusable.
• Your cat tips over a vase of flowers, and the water damages your laptop.
• During the holidays your jewellery is stolen from your hotel room.o Someone steals your bicycle.

Health insurance

Basic health insurance covers the general and necessary health costs of medical treatment, visits to a doctor, hospitalisation or medically prescribed medication. Basic health insurance is mandatory for all persons residing in Switzerland.

• Your family doctor will prescribe a medication for your severe cough.
• You undergo an emergency procedure to have your appendix removed in hospital. 
• You have an accident and are transported by ambulance.

It is also possible to take out voluntary supplementary insurance. This covers supplementary services such as outpatient and inpatient emergency treatment abroad, possible travel and transport costs, dental treatment, massages, acupuncture, gym memberships or private rooms in hospital. 

With the latter, you can take out supplementary hospital insurance and choose between private and semi-private. Persons with a semi-private insurance plan are entitled to a two-person room and free choice of doctor in hospitals throughout Switzerland. In public hospitals, the senior physician is usually responsible for the treatment. Privately insured persons are entitled to a single room and free choice of doctor in hospitals throughout Switzerland. In public hospitals, the senior consultant is usually responsible for the treatment.

Legal protection

Legal expenses insurance supports you with legal issues and disputes. You will receive support from competent lawyers. The costs of the legal staff as well as possible court and litigation costs are also covered.

• Your former employer refuses to pay for your overtime hours.
• You discover that the bag you ordered online is a fake. ·
• You argue with your landlady about who will pay for the new oven.
• You have received a traffic fine and wish to contest it.

Private provisions 3a and 3b for singles

The 3rd pillar covers you in addition to the 1st pillar (AHV/IV) and 2nd pillar (BVG/pension fund) and is a form of private pension provision. However, the 3rd pillar can also protect you against a loss of income. As singles are responsible for their own living costs, insurance coverage in the event of loss of earnings is particularly important. In addition, the 3rd pillar can help you make your dreams come true. You can deduct a good portion of the deposits from your taxes, and accumulated pension fund assets are also available when you start a company, purchase a property or emigrate – not just on retirement. Pillar 3b offers you even more flexible savings options.

Pillar 3a

With pillar 3a, you regularly pay into a tax-qualified account. You can invest your money in equities and benefit from high equity exposure due to the long-term investment horizon. The savings contributions are also tax-deductible, thus reducing your tax burden at the same time. 
As pillar 3a is tax-qualified, you only receive the accumulated money on retirement (at the earliest five years before normal retirement age) if you emigrate abroad, become self-employed or purchase property. 

Pillar 3b

With pillar 3b you also regularly pay into an account – which also offers attractive potential returns and tax advantages. Pillar 3b is free and not tied: the term is flexible and there are no maximum amounts. In addition, individual payment of the savings contribution in 3b pension solutions is possible and is not subject to stipulations as with pillar 3a. 

Private provisions at a bank or insurance company?

If you suddenly become disabled, the insurance company will continue paying the savings contributions for you so that you reach your savings target. This is not the case with a 3a solution at a bank, but banking solutions ultimately offer greater flexibility. Depending on the individual situation, a split solution is advisable: invest one part with a bank and the rest with an insurance company. 

Adapt to your life situation at any time

Change is part of life. Insurance and pension solutions for singles can be flexibly adapted to new life situations at any time.

We would be happy to advise you on which solution is best for you at the moment.

^{image source: Unsplash, Jayden Yoon}