Swiss annuities and Swiss life insurance products offer many benefits to international investors. In particular Swiss annuities offer the following key advantages:
Ultimate Swiss Safety
Switzerland, one of the world's most stable country both politically and economically, also has the world's strongest insurance industry with a continuing history of success without a single failure ever.
Swiss Insurance Products are Tailor-Made
Swiss annuities and life insurance policies can be tailor-made to suit the most individual needs. For example, if substantial assets are to be invested in an insurance or via an insurance arrangement, it is possible for a specific insurance plan to be set up that allows the underlying investments to be organized in individual portfolios through the existing investment manager. Such plans are also referred to as portfolio bonds or insurance wrappers.
Investment in the World's Strongest Currency
Although Swiss insurance policies are available in all major currency denominations (see below, “Currency switch possibility)”, most annuities are issued in Swiss Francs. There are good reasons why foreign investors favor Swiss-Franc investments. Thanks to the country’s high political and economic stability, the Swiss Franc has remained strong over decades in comparison with other leading currencies, including the US Dollar. The Swiss Franc is arguably the world's strongest currency.
Currency Switch Possibility
A currency switch option is available for all of the world’s major currencies. An investor may therefore choose a Swiss-franc annuity and convert it into US Dollars (or another major currency) at almost any time.
Flexibility to Change Policy Options
Swiss annuities offer the flexibility (also) to change other policy options during the accumulation phase, for example the payout options, the deferment period, or the beneficiary clause.
Excellent Asset Protection
If structured properly, Swiss insurance policies cannot be seized by creditors nor can they be included in a Swiss (or foreign) bankruptcy procedure. This is enacted in the Swiss Federal Act on Insurance Contracts. Swiss annuities are therefore the perfect asset protection tool which can be additionally tailor-made to your individual needs.
Guaranteed Returns and Surplus Participation for Additional Returns
On fixed annuities, returns are guaranteed by the Swiss insurance company, and government regulations protect investors in every possible way. In addition to the guaranteed contractual annuity, the policy participates in the surplus reported by the Swiss insurance company.
No Reporting Requirements
Insurance companies in Switzerland do not report to any government - Swiss or foreign - if the policyholder is not resident in Switzerland. Thus neither the initial purchase of the policy, nor individual payments, nor interest or dividends earned, nor any other information will be reported. All transactions are kept strictly confidential.
Instant Liquidity
Swiss annuities offer instant liquidity. All capital, plus all accumulated interest and dividends, are freely accessible at any time. Depending on the type of annuity, only at an initial period of up to one year there is a minimal penalty in case of withdrawal. This is in stark contrast to, for example, US annuities which usually carry high penalties for early withdrawals. With Swiss annuities, if funds are needed quickly, they are available and not tied down for a fixed period of time. Furthermore, Swiss banks will accept Swiss annuity and life insurance policies as collateral for loans.
Loans of up to 100% of the Policy Value
Swiss banks will normally lend up to 100% of the policy’s surrender value. This offers additional flexibility with regard to cash management. You do not need to liquidate your Swiss annuity should you wish to “mobilize” the money invested in it. You can at any time obtain a loan from a Swiss bank for the annuity as collateral.
No-Load Investment
Swiss annuities are on a no-load basis, so there are no additional charges or costs and the investment can be cancelled at any time practically without loss of principal or accumulated interest and dividends.
Long Accumulation Periods
Swiss annuities offer long accumulation periods of up to 50 years.
No Swiss Taxes
Swiss annuities are free from any tax; in particular, the 35% Swiss withholding tax on interest and dividens earned in Switzerland does not apply.
Efficient, highly professional service
Switzerland has probably the world's most efficient banking and insurance industry, and the transfer of funds is unrestricted and very easy. Due to the high level of education and professional training in Switzerland, clients enjoy dealing with competent employees who handle client matters intelligently and efficiently.
No forced repatriation of funds
Swiss insurance policies would normally escape any forced repatriation under possible future imposed exchange controls, because they are regarded as a pending contract between the investor and the insurance company.
Advantages for US Citizens/Residents
Swiss annuities can be legally purchased by US persons, and they can be placed in US tax-sheltered pension plans such as IRA or corporate plans, or such a plan can be rolled over into a Swiss annuity easily and free of charge.