Life Insurance Policy as Collateral for Loans

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  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

Can I pledge a life insurance policy as collateral in order to get a loan in Switzerland?

  • BenutzernameMoneyguru von
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4016

Hi there,

If you have a Swiss permanent life insurance policy (in Switzerland this is known as mixed life insurance or savings insurance), then you can pledge the cash value of the policy as collateral to obtain a secured loan. These loans, known as policy loans, are offered by some Swiss banks and by Swiss life insurance providers directly. Some Swiss banks accept life insurance cash value as collateral for lombard loans. The interest rates and conditions can be favorable compared to unsecured personal loans.

While not directly related, it is worth noting that many Swiss banks accept pledges of life insurance cash value towards the down payment required in order to mortgage a property.

Best regards from Moneyguru

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