Death benefit capital UVG and BVG: amounts and priority beneficiaries
Introduction
When an employee dies, their relatives may benefit from death benefits paid by employment-related insurance. Two systems come into play: compulsory accident insurance (UVG) and occupational pension provision (BVG). Yet many families are unaware of the existence of this financial assistance at the time when they need it most.
The UVG death benefit capital applies only in the event of an accident, whether occupational or not. Its amount can reach several years' salary. The BVG covers deaths whatever the cause and pays mainly pensions to spouses and children. Some pension funds also offer a supplementary death benefit capital.
The order of beneficiaries follows strict legal rules that favour the spouse, children, but also, under certain conditions, the cohabiting partner. Understanding who is entitled to what, in what order and how to assert these rights helps avoid unpleasant surprises and secure the financial situation of relatives. These benefits are in addition to other financial assistance available after a death in Switzerland.
📌 Summary (TL;DR)
In the event of an employee's death, the UVG pays a capital only if the death results from an accident, whilst the BVG covers all deaths through spouse's and orphan's pensions. The order of beneficiaries is defined by law and favours the spouse, children and, under certain conditions, the cohabiting partner. Relatives must contact the employer and insurance companies with the necessary documents to assert their rights.
📚 Table of contents
UVG and BVG: two complementary pension systems
In Switzerland, the UVG (Federal Act on Accident Insurance) and the BVG (Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans) form two distinct pillars of social protection. The UVG covers accidents, whether they occur at work or during leisure time. It is compulsory for all employees.
The BVG constitutes the 2nd pillar of pension provision. It mainly covers risks related to illness, old age and disability. Both systems can pay benefits in the event of death, but according to different terms and amounts.
UVG death benefit capital: amounts and conditions
Accident insurance pays a UVG death benefit capital to relatives when an employee dies as a result of an accident. This capital supplements other survivors' benefits.
The amount and conditions of payment depend on the insured salary and family situation. The UVG distinguishes several categories of priority beneficiaries according to a strict legal order.
Amount of capital paid
The UVG death benefit capital generally represents 5 years of insured salary for the spouse or registered partner. Children receive 2 years of insured salary.
Concrete example: for an insured salary of 80,000 CHF, the spouse receives 400,000 CHF and each child 160,000 CHF. If the deceased has neither spouse nor children, the other beneficiaries (parents, brothers and sisters) share 2 years of salary.
The amount varies according to the salary declared to the insurance. Check the insurance certificate to know the exact amount.
Occupational accident vs non-occupational accident
The UVG covers all accidents, whether they occur at work or during leisure time. For full-time employees (at least 8 hours per week), non-occupational accident cover is automatic.
Death benefits remain identical, whether the accident is occupational or not. The difference mainly concerns financing: the employer pays the premiums for occupational accidents, the employee for leisure accidents.
UVG survivor's pension: an alternative to capital
In addition to the capital, the UVG pays monthly survivors' pensions. The spouse or registered partner receives a life pension of 40% of the insured salary (30% if they have no dependent children).
Each child receives an orphan's pension of 15% of the insured salary until the age of 18 (25 if in education). Complete orphans receive 25% each.
These pensions are in addition to the initial death benefit capital and constitute lasting financial support for families.
BVG death benefits: pensions and capitals from the 2nd pillar
Occupational pension provision (BVG) also pays benefits to survivors in the event of death. Unlike the UVG, it covers deaths whatever the cause, accident or illness.
The employer benefits of the 2nd pillar mainly take the form of monthly pensions. Some funds also pay a death benefit capital according to their regulations.
BVG spouse's pension
The BVG survivor's pension for the spouse represents 60% of the disability or old-age pension that the deceased received or would have received. It is paid for life to the spouse or registered partner.
Conditions for obtaining it: be married or in a registered partnership, AND have dependent children OR be at least 45 years old with a minimum of 5 years of marriage. Without these conditions, the pension is paid for 3 years only.
BVG orphan's pension
The deceased's children receive an orphan's pension of 20% of the disability or old-age pension. It is paid until the age of 18, or 25 if the child continues their studies.
Complete orphans (having lost both parents) accumulate the pensions of both parents. This double pension offers better financial protection in these particularly difficult situations.
BVG death benefit capital: according to fund regulations
Some pension funds pay a death benefit capital in addition to pensions. This capital comes from extra-mandatory benefits and varies greatly from one fund to another.
The amount can range from a few thousand to several hundred thousand francs. Consult your pension certificate to know the exact benefits of your fund.
Order of beneficiaries: who receives the benefits?
UVG and BVG death benefits follow an order of beneficiaries defined by law. This order determines who receives the capital and pensions according to the deceased's family situation.
Understanding this legal cascade is essential, particularly for people in cohabitation who do not automatically benefit from the same rights as married couples.
Priority beneficiaries UVG
The legal order UVG is strict and cannot be modified: 1) spouse/registered partner and children, 2) other financially dependent persons, 3) parents, 4) brothers and sisters, 5) legal heirs.
Beneficiaries of a higher rank automatically exclude those of lower ranks. If the deceased leaves a spouse and children, the parents receive nothing.
The cohabiting partner can be a beneficiary in rank 2, but only under strict conditions of cohabitation and financial dependence.
Priority beneficiaries BVG
The BVG order resembles that of the UVG, but offers more flexibility. Pension funds can define three categories of beneficiaries in their regulations.
Category 1: spouse, registered partner, children (and cohabiting partner under conditions). Category 2: dependants, parents, brothers and sisters. Category 3: other legal heirs.
Some funds allow the distribution to be modified within the same category. For example, favouring one child or including a cohabiting partner. Consult your fund's regulations to know your options.
The special case of cohabitation
The cohabiting partner is not automatically a beneficiary of death benefits. To be entitled to them, they must meet strict conditions: uninterrupted cohabitation of at least 5 years, OR common child AND substantial financial support from the deceased.
It is crucial to officially declare the cohabiting partner to the employer and the pension fund. Without this step, the cohabiting partner will receive nothing, even after years of living together.
How to assert your rights to death benefits
After a death, relatives must undertake administrative procedures to obtain UVG and BVG benefits. These procedures are in addition to other formalities related to the death.
Good organisation and the compilation of a complete file speed up the payment of benefits. Processing times vary according to insurance companies.
Procedures with the employer and insurance companies
Contact the deceased's employer quickly to obtain the contact details of the accident insurance and the pension fund. Also request the last salary certificate and pension certificates.
Announce the death in writing to the relevant insurance companies. They will send you the benefit application forms. Respect the deadlines indicated, generally a few months after the death.
Compile your file with all the necessary documents to avoid processing delays.
Necessary documents
Insurance companies generally request: the official death certificate, the family or marriage certificate, a copy of the beneficiary's identity card, the deceased's last salary certificate.
For cohabiting partners: certificate of common residence, joint tax return, proof of financial support. For children: birth certificates, school attendance certificates for those over 18.
Make certified true copies of all original documents. Insurance companies accept them and you keep the originals.
Accumulation and coordination with other benefits
UVG and BVG benefits accumulate with other financial assistance after a death. You can simultaneously receive AHV pensions from the 1st pillar, capitals from pillar 3 and payments from private life insurance.
UVG and BVG death benefits are generally not taxable at the time of payment. Only monthly pensions are subject to tax as income. Capitals paid in a lump sum escape income tax, but may be subject to inheritance tax depending on the canton.
For a complete overview of financial assistance after a death, consult our detailed guide. It presents all available benefits and how to coordinate them effectively.
The UVG and BVG offer essential financial protection to relatives in the event of death. The UVG death benefit capital applies only in the event of an accident, with amounts varying according to the occupational or non-occupational nature of the accident. The BVG, for its part, mainly provides pensions for the spouse and orphans, with sometimes a death benefit capital according to your pension fund's regulations.
The order of beneficiaries is strictly defined for both systems, with particular attention for cohabiting partners who must meet specific conditions. To assert your rights, contact the deceased's employer quickly and gather the necessary documents: death certificate, family record book and proof of situation.
These benefits are part of a wider network of financial assistance after a death. To understand all the support available and organise the tribute to your loved one, publish an obituary on Funere and easily share the information with those around you.
