Swiss Insurance Protection laws on annuity investments

Article 80 of the Swiss Insurance act says that if a policy owner residing outside switzerland, designates his beneficiaries to be his spouse or his descendents or irrevokable designates any third party, no creditors of the policy owner can seize the insurance policy. If the policy owner has waived his right to revoke a designation, then the insurance policy may not be seized by the policy owner’s creditors.

The creditors of a person residing outside of Switzerland cannot seize or include in bankruptcy proceedings of any life insurance policy, even if they have a judgment or a bankruptcy decree from a foreign judge enforceable in Switzerland, unless they can prove that the designation of the beneficiaries of the insurance policy is from under fraudulent conveyance rules.

Creditors of the policy holder, can seize the policy or include in bankruptcy only if they are able to prove that the purchase of this policy is from fraudulent activities or conveyance, as per swiss law. The purchase of the swiss insurance policies and designation of beneficiares, shall stand void, if there are sufficient proof (foreign judgement) for fraudulent conveyance and the designation made within 1 year from the initial transaction. Also as per swiss debt collection and bankruptcy act, if the policy holder had purchased the policy with the full intention of damaging creditors, with named beneficiaries are aware of this, then the designation can be made voidable.

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There are so many factors, to be considered for creditors, before they put their feet in switzerland for seizing the policy holders assets.

1. Expensive court costs (US$ 300 per hours charged by many attorneys)

2. They must know where exactly the policy exist, with which insurance company?

3. Creditor must have a specific claim, based on an enforceable judgment or
on a recognition of debt.

4. The creditors must get a cantonal (concerned state) order for the attachement, then had to file a civil proceeding in swiss civil court and must prove in front of a swiss judge, that the policy had been purchased under fraudulent conveyance before seizing money.

This involves too complicated procedures and proceedings.

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