Schweiz- Suisse - Switzerland

Swiss Insurance laws on annuity investments

Swiss insurance industry has as long standing tradition for stability, safety and security for its insured clients, be it from switzerland or from a foreign country. The insurance sector is well regulated and under supervision of FINMA which oversees the proper functioning of insurance sector.


In the modern world, safety for your money is the most important consideration against any uncertainity, which include natural disasters, financial crisis, epidemic, death, wars, currently depletion which are quite unpredictable and can happen anytime. Swiss annuities have been usually "worry-free investment" and has recently gained more popularity, from investors in europe and USA. Infact, not many people would realize, that in the past history, not a single swiss insurance company have gone bankrupt or have defaulted on meet its contractual obligations.


Swiss insurance companies are not obligated report to any foreign authorities, third parties or persons and all the transactions and earnings will be kept confidential by the insurance company as per the privacy laws. However, privacy is only guaranteed, if your source of money is legal and free from any crimininal activity. All insurance companies in switzerland are bound to verify the source of funds and beneficial owner, just to make sure that the invested money is free from criminal activity or money laundering. From tax perspective, it is the responsibility of the policy holder to report or pay taxes to local authorities as per laws in the home country.

Asset Protection

According to Article 80/81 of the swiss insurance law, life insurance polices including annuity contracts, when properly structured and beneficiaries named, it offers an extraordinary degree of asset protection from creditors and bankruptcy .proceedings. It is very important to name a beneficiary of your choice as a revocable or irrevocable one. The creditors of a person residing outside of Switzerland cannot seize or include in bankruptcy proceedings of any life insurance policy, even if they have a judgment or a bankruptcy decree from a foreign judge enforceable in Switzerland, unless they can prove that the designation of the beneficiaries of the insurance policy is from under fraudulent conveyance rules.

Creditors of the policy holder, can seize the policy or include in bankruptcy, if they are able to prove that the purchase of this policy is from fraudulent activities or conveyance, as per swiss law.

There are so many factors, to be considered for creditors, before they put their foott in switzerland for seizing the policy holders assets.

  1. Expensive court costs (US$ 300 per hour charged by many attorneys)
  2. They must know where exactly the policy exist, with which insurance company?
  3. Creditor must have a specific claim, based on an enforceable judgment or on a recognition of debt.
  4. The creditors must get a cantonal (concerned state) order for the attachement, then had to file a civil proceeding in swiss civil court and must prove in front of a swiss judge, that the policy had been purchased under fraudulent conveyance before seizing money. This involves too complicated procedures and proceedings.

For more information please refer our Frequently Asked Questions(FAQ's) section. Should you have any questions of general category, please do not hesitate to Contact Us.