Investing:
CapitalCertificate with insurance cover
Information and frequently asked questions about CapitalCertificate
Insurance benefits
- Attractive return opportunities through participation in an Index with Swiss companies
- Return Boost on the performance of the Index
- Capital protection
- Zero foreign currency risk, no health check
- Take advantage of the tax incentives of a life insurance policy thanks to the 10-year term – and Zurich covers the stamp tax
- An investment is possible starting at CHF 20,000. Age at entry: 50 to 65 years
Which companies comprise the Index?
CapitalCertificate allows you to invest in a well-diversified index. The Index is composed of leading Swiss companies. This factsheet provides an overview.
The companies occupy different economic sectors, ensuring a well-diversified investment.
How high are the potential returns from CapitalCertificate?
With CapitalCertificate, you make an investment that is full of opportunities. You benefit from the price gains of the Index, composed of the stocks of 15 leading Swiss firms. On top of this, you’ll get a Return Boost, subject to a return cap.
How does the profit protection work?
If the performance of the basket reaches the profit protection threshold of 20 percent in the last three contract years, you benefit from a guaranteed minimum payout of 120 percent of your single premium at maturity. Upon expiry, you will be paid the higher value, either the closing price of the Index plus 15% return boost or the guaranteed minimum payout of 120% of your single premium.
How come there is a limited downside risk with CapitalCertificate?
CapitalCertificate features a clever protection mechanism. Within the buffer zone your capital is protected in case of negative performance of the Index. You only suffer a loss on your investment in case of an index decline exceeding the buffer zone. In such case, the payout value is calculated as triple the negative performance figure minus the buffer.
Our consultants will be happy to provide you with detailed information about the opportunities and risks of this financial investment.
Who pays the stamp tax?
Purchase of a life insurance policy with a single premium incurs stamp tax of 2.5%, which Zurich will cover for you. This way, more money will flow into your investment than if you were to pay this charge yourself.
What are the advantages of life insurance compared to a financial investment with the bank?
- You do not pay any income tax on interest and dividend income.
- Thanks to the guaranteed death benefit, your surviving dependents are also well protected. Your surviving dependents receive the market value of the certificate or 101% of the invested funds as a minimum.
- Your private assets are protected thanks to bankruptcy privilege. If you name your spouse, registered partner or children as beneficiaries, the life insurance will not become part of the bankrupt’s estates in the event of your firm becoming bankrupt.
