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Taking care of your loved ones’ future Individual order of beneficiaries

Set up an order of beneficiaries so you decide who is entitled to any lump sum payments in case you die before you retire.

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Key points at a glance
  • If an insured dies before they retire, under certain circumstances their survivors may also receive a supplemental lump-sum death benefit in addition to the survivors’ pension. 
  • The occupational benefits fund regulations for your pension fund determine which people are entitled to a lump-sum death benefit if you die.
  • You can change the designated order of beneficiaries in the regulations to suit your personal needs. 
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What is a lump-sum death benefit?

If an insured dies, in certain cases the survivors will receive a lump-sum death benefit. Your employer’s occupational benefits plan determines whether and to what extent a lump-sum death benefit is insured. The amount of the lump-sum death benefit can be found on your pension fund statement. This amount is provisional, as it can only be precisely calculated after your death. 

Who is entitled to a lump-sum death benefit?

When a lump-sum death benefit is paid out, the regulations define which people are entitled to it. This is what is known as the “order of beneficiaries.” Typically the order is as follows:

  • the spouse; if none
  • the children eligible for an orphan’s pension; if none 
  • the natural persons who received substantial support from the insured, and/or the person with whom the insured lived in a life partnership or who bears financial responsibility for one or more children from the relationship; if none
  • the children not eligible for an orphan’s pension; if none
  • the parents; if none
  • the siblings and half-siblings; if none
  • any other legal heirs, with the exception of the canton and commune.

 

Changing the order of beneficiaries

You can change the order of beneficiaries listed in the regulations to adjust it to your personal situation. In other words, based on what is legally permissible, you can determine which people receive what percentage of the lump-sum death benefit. Depending on your circumstances and family situation, this may give your more or less flexibility. 

You are married or live in a registered partnership

The following general rule applies: If there is no person from group C – that is, no person(s) who are primarily supported by you or who are responsible for supporting your joint children – you can distribute the lump-sum death benefit as you wish among the remaining groups.

You are not married and do not live in a registered partnership

The following general rule applies: If there is no person from group C – that is, no life partner and person(s) who are primarily supported by you or who are responsible for supporting your joint children – you can distribute the lump-sum death benefit as you wish among the remaining groups.

Please note: Since family situations change during the course of a lifetime, a lump-sum death benefit is only paid out based on the actual situation at the time of death. 

Regularly check your order of beneficiaries

Remember to regularly check your order of beneficiaries and adjust it when necessary. This is particularly important if your family situation changes, such as due to marriage, the birth of a child, the death of a family member or the end of a life partnership. 

How can I adjust my order of beneficiaries?

Send us the form “Individual order of beneficiaries” telling us how you wish your lump-sum death benefit to be distributed. List the name of each of your beneficiaries and the percentage they should receive. The total should amount to 100 percent. The information sheet contains all the key points you need to know. 

Forms

FAQ

How much is the lump-sum death benefit?

This depends on the individual and the retirement plan. The amount of the lump-sum death benefit is listed on your personal pension fund statement which you receive once a year. If the lump-sum death benefit as per the pension plan depends on the accrued retirement assets, then the amount on the pension fund statement is a provisional amount that can only be determined once you have died.

Can the individual order of beneficiaries be adjusted at a later time if my family situation changes?

Yes, you can change or cancel your individual order of beneficiaries at any time. This is particularly important if your family situation changes, such as due to marriage, the birth of a child, the death of a family member or the end of a life partnership.

When does my individual order of beneficiaries go into effect?

It goes into effect as soon as the form has officially been received by the pension fund and provided it has been correctly filled out.

Will the lump-sum death benefit be paid out to the people I have designated no matter what?

After the pension fund receives your order of beneficiaries, it checks the form to see whether it has been correctly filled out. However, many things can change in your personal life after you have submitted the form. This means the pension fund can only determine whether paying out any lump-sum death benefit according to your wishes is possible after you have died. This assessment is made based on your personal circumstances and the legal and regulatory provisions at the time of your death. 

What requirements apply to unmarried couples and cohabiting partners?

A life partner is eligible if the couple has lived together for the past five years uninterrupted in the same household and domicile or if the surviving person must support one or more of the couple’s children. A person who survives the insured and was largely reliant on the insured for support is also entitled to the lump-sum death benefit. The exact provisions are laid out in the regulations. 

Registered partnerships are deemed to be equal to married couples. 

I’m separated from my spouse, but we’re not yet divorced. Can I designate my new life partner?

As long as you are still married, you cannot designate your life partner.

I don’t have any family. Can I designate anyone I want for my lump-sum death benefit?

You can only designate natural persons who are listed in the regulations. You cannot designate other persons or legal entities such as charitable organizations. 

What happens to the lump-sum death benefit if I do not submit an individual order of beneficiaries?

If you do not submit your individual order of beneficiaries while you are alive, the lump-sum death benefit will be paid out as per the order of beneficiaries listed in the regulations. 

Your contact for further questions

If you have any other questions, you can call us at  0800 809 810 or write to us at services.bvg@axa.ch.

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