Is there a compulsory inheritance share for life insurance benefits in Switzerland?

From what I understand, Switzerland has a pretty strict formula for distributing inheritances, with the spouse and kids and other relatives having an actual right to certain portions of your assets.

Does this apply to life insurance benefits as well? If I invest in a life insurance policy instead of savings or property, can I then name any person or organization as my beneficiary to get around the legal inheritance shares?

In my case, I am separated from my wife and estranged from my kids, but am very close to my girlfriend and her son. I would rather invest in them than in a family that hates me. Any help with this?

Greetings,

How inheritance laws affect life insurance benefits depends on what type of life insurance you have.

Life insurance provided by social security (survivors insurance) and your occupational pension fund (2a) have their own clearly regulated set of hereditary rules. These apply to vested benefits insurance policies as well.

Swiss 3a life insurance policies are subject to the same strict inheritance rules which govern all other 3a retirement savings.

However, if your life insurance policy is based on 3b retirement savings (which aren't tax privileged in the same way as 3a savings), you enjoy more freedom in naming your beneficiary. Only the cash surrender value of your policy (in whole life insurance) is included in your personal fortune - which is subject to Swiss inheritance laws. The remaining portion of the benefit can be paid out to any person or entity of your choice.

If your policy does not have a cash surrender value, as is the case with term life insurance, you can name any beneficiary you choose and they can collect the full benefit directly from your insurer. Inheritance law does not apply.

Best regards from Moneyguru

More on this topic:
Life insurance comparison
Basic guide to Swiss inheritance law
Compulsory inheritance share explained