Living together first requires responsibility, especially in terms of insurance. In this case it is better to take out household liability and legal protection. That said, before you think about your cherubs that can cause harm, “a couple who wants to live together outside of marriage must protect themselves against possible unpleasant surprises”, advises Marco Cusumano, sales manager of Vaudoise.
two is better
Comfortable and established, the couple who share their summer house must be aware of several criteria that can interrupt the melody of happiness. To pay less, it is important to bundle your insurance in the “family” version. The condition to avoid paying twice. If the house is an owner-occupied flat, it is preferred, as for children, that you agree in advance the less cheerful terms for a possible separation. The blended family scenario also raises other questions, especially regarding inheritance. So how to manage, for example in case of death, the distribution of property between the possible heirs born of a first union – children, parents, brothers and sisters or even parents-in-law? Who owns what in a house bought together? “The analysis of long-term insurance is the analysis of all the coverages specific to each scenario, namely in case of disability, death or retirement. In a joint property purchase, it is better to collect everything under both names, to avoid to get lost in the inventory,” explains Marco Cusumano. It is imperative to certify before a notary the distribution of the equity during the procedure for purchase in joint ownership – as a general rule, this happens automatically when formalizing the property acquisition. “This avoids problems and determines who is a co-debtor or jointly and severally co-debtor. In the pension fund, it is possible to take out death insurance. In connection with cohabitation, such cover actually also enables the survivor to redeem shares from the so-called legal heirs. In order for the longest-living cohabitant can redeem their shares against the legal heirs, this must be notified to a notary using the right of withdrawal (transfer of ownership of a property).
Before the law
Insurance cannot replace the law on cohabitation or supplement non-existent rights, such as the absence of a widow’s pension – legally for ACP, no right exists. For the LPP, the legal basis does not recognize cohabitation either. However, the pension fund regulations can do that. This element must therefore be checked with the respective funds. Fortunately, children from cohabitation do not suffer the same fate and can claim child’s pension.
We must consider the solutions proposed by Vaudoise as a way of offering, after all, to the person who has shared a life outside of marriage, to be considered a spouse, or equally deserving, especially when the property is shared.
Prevention always
Since cohabitation does not allow the survivor to receive the 2nd pillar (unless the pension fund recognizes this aspect and a prior notification of cohabitation has been made), Marco Cusumano reminds that “the most common products to compensate for the possible deficiencies caused of contingencies are found under “pure risk” insurance – that is, insurance that covers the risks of incapacity and death – must be combined. This is also examined by Vaudoise advisers when buying real estate. It is also a matter of being aware of disability pension after illness or accident and finally to consider the “savings aspect”, as with the linked 3rd pillars. “Our 3rd pillar is linked to investment funds managed by Vaudoise, in which they invest their own funds. “A guarantee of security.
In general – in life insurance in particular – cohabitation is recognized if there is at least five years of life together. No widow’s pension, no right to 1st pillar and 2nd pillar pension (but the pension fund regulations can be more flexible) and no legal recognition of the LAA, the Accident Insurance Act.
Possible alternatives
Always supported by a notarial deed, a right of exemption would allow the surviving spouse to redeem the legal heirs a primeur, either with the necessary cash or by taking out death insurance. “This dedicated formula makes it possible to pay a premium for a death benefit. If the risk appears, the person designated as beneficiary receives the capital and disposes of it as he wishes. »
Since the revision of the Inheritance Act entered into force on 1 January 2023, the testator has a greater share of freedom: if he does not harm the forced heirs (e.g. child), a larger part of the estate can be assigned to the partner. , but it will always be taxed at around 50%, depending on the canton. If you want to establish a cohabitant as a beneficiary in the 3rd pillar of a maintenance policy, you must have lived together for at least 5 years.
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