Same-sex marriage: What does this mean for insurance and pension provision?

Up until July 01, 2022, it has only been possible for same-sex couples to live in a registered partnership. This offers couples similar rights and obligations as a marriage contract - but not in all respects. In the event of the death of one partner, for example, it is often difficult to provide sufficient financial security for the other. 

Following last year's clear popular vote in favor of a "Yes to same-sex marriage," same-sex couples will be able to officially enter into marriage as of July 1, 2022. From that date on, it will no longer be possible to enter into new registered partnerships. However, previously established registered partnerships will continue to exist. 

Couples who wish to convert their registered partnership into a marriage can do so at the civil registry office.

And this is worthwhile in many respects. After all, marriage is the safest "official" partnership when it comes to the financial security of a surviving spouse. The same rights and obligations apply to marriage as to non-same-sex couples.

Here's how marriage affects retirement planning

AHV:

In retirement, both partners benefit from their respected AHV annuities. However, the joint pension of married couples is reduced to one-and-a-half times the maximum pension. This means that, provided there are no gaps in contributions, the couple will not receive two full pensions, but 1.5x pensions together. 

In the event of the death of a partner, same-sex couples - whether male or female - are treated the same as widowed men from non-same-sex marriages. This means that they would only receive a widow's or widower's pension if said person had children under the age of 18. 

Pension fund (2nd pillar): 

In the event of death, the remaining partner receives a survivor's pension from the occupational pension fund. The marriage has to however have existed for at least five years and the surviving partner has to be over 45 years of age , or have children under the age of 18, to be eligable to recieve said pension.

Pillar 3 (a and b):

Pillar 3a pension assets are first paid out to the surviving spouse in the event of death. 

This is how marriage affects insurance 

1. health insurance

Marriage has no effect on basic insurance (health insurance). However, it is important to report a possible change of name in good time. 

With the supplementary insurances it's a little different: Many providers namely offer family-discounts if the partner takes out a policy with the same provider. 

2. legal protection insurance

There are also family rates for legal protection policies, offering a small discount. 

3. liability insurance 

Most married couples opt for a joint policy, as it is cheaper than buying two separate policies. It is also possible to include a newly married spouse.

4. household insurance

You only need one household insurance policy per household. Therefore, one of the two spouses can cancel their own household insurance, provided the couple live in the same household. 

You say yes to each other? We will take care of the rest! 

It seems as if marriage is really more than just love! To make sure however that you can focus on just that, we at Caveo are happy to take care of the paperwork for you. Download the app now and get free and uncomplicated advice!