I've just checked, it was nearly 600chf a year and we decided it was too expensive so cancelled the 'income protection' one and just keep the illness or death one.
At the time his job was pretty secure but things are looking a little less so these days (also in pharmacuticals).
It was in 1999 so it's possible the insurance companies think it's not a good enough bet to offer these days.
In our case if things do go wrong I guess he'll be retiring a little sooner than he'd planned and he'll end up back in England working in B&Q!
Your having a laugh! 600 a year to pay your mortgage if you loose your job, sounds like a very good deal for 50 CHF a month.
I didn't tell, but paying your salary into the same bank might give them a clue to a change in circumstances.
After hearing a story from a friend when her company had all their accounts frozen by the bank, including the salary account, I put my savings somewhere other than the bank I have the mortgage with.
No kidding... Would love such... Where do I sign up?
600 a year to pay a < 1 k a month mortgage (up to 1.5m mortgage at todays Libor rates) probably with a 60 day waiting period, paying every year of your mortgage just in case you loose your job. That doesn't sound like such a good a deal to me.
No, I'm not 'having a laugh'. At the time, with one (small) income, two kids in higher education and myself ill so we needed to pay for help in the house 600 francs was a lot of money.
There is a clause in the AGB's that when your assets are frozen due to claim by 3rd parties that it would be considered a special mortgage cancelation reason. In fact, bank can demand payment of mortgage at any time and without a reason. Nothing special about no income or reduced income warrants it.
If your husband had lost his job, he had an awful lot to loose.
Under 2.50 CHF a working day, for someone working in pharmacuticals, I must be missing something!
Well, show me insurance that is a good deal... Car insurance perhaps? nah...health insurance? Maybe....legal insurance? Sure... personal belongings/rental etc? absolutely..
At 5% it's 6,250 a month, the rates in 1999 were nearer 5% than today's Libor rates, even with a 60 day waiting period........ I would buy & I hate insurance!
that's why i said it was the worst case, and not the most likely case. agree it is unlikely in normal times, but with the worst economic crises in recent memory on the horizon, i would say it is prudent to consider tail risk instead of discounting it completely.
either way, something that you can reduce to risk of for little incremental cost - particularly if you separate accounts to avoid potential issues with bank insolvency when that bank has both your mortgage and your savings.
re: insurance, you already have the standard RAV safety net. for me, it isn't really worthwhile paying for more in addition to this.