Glossary

Federal Health Insurance Act. Defines the mandatory basic health insurance in Switzerland — identical benefits across all insurers.

Amount you pay before insurance kicks in. LAMal: CHF 300-2,500 for adults. Higher deductible = lower monthly premium.

Auto insurance for your own vehicle (on top of mandatory liability). Partial: theft, fire, glass, animals. Full: also at-fault accidents.

Insurance covering damage caused to others by you, your minor children or pets. Typical limit: CHF 5M.

Optional health insurance plans on top of basic LAMal: hospital (private room), dental, alternative medicine, glasses. Insurer may refuse applicants.

Coverage refunding trip costs if you can't travel due to unforeseen events (illness, accident, bereavement, job loss). Must be subscribed before or right after booking.

Alternative LAMal model where you first consult your family doctor before specialists. In exchange, your premium drops 10-18%.

LAMal model where you call a medical hotline (Medi24, Medgate) before treatment. 12-20% premium discount.

Health Maintenance Organisation. Most restrictive LAMal model — consult exclusively in HMO practices. Premium discount 15-25%.

Element of full collision covering damage to your own vehicle in at-fault accidents. With deductible and bonus/malus.

Auto premium adjustment system based on claims. Each year without claim = bonus. At-fault claim = malus.

Switzerland split into 3 zones per canton by medical costs. LAMal premiums vary across regions of the same canton.

International auto insurance document recognised in 50 countries. Free from your insurer.

Swiss medical hotlines used by Telmed insurance models. 24/7 advice, e-prescriptions, 12-20% discount.

Simple theft (outside, without break-in) is covered only with a specific add-on. Break-in theft is covered by default.

Person residing in France, Germany, Italy or Austria who works in Switzerland. Has a right of option: Swiss LAMal or home-country system. Irrevocable, must be formalised within 3 months of starting work.

Choice for cross-border workers between Swiss LAMal and home-country health system. Irrevocable, formalised with cantonal authority within 3 months.

LCA hospital coverage tiers: ward (LAMal only) 4-6 beds; semi-private 2 beds + chief doctor choice; private single room + free doctor and hospital choice in Switzerland.

Five disciplines reimbursed by basic LAMal since 2017 (acupuncture, anthroposophic, Chinese, homeopathy, phytotherapy) — only by a certified doctor. Osteopathy, shiatsu, yoga remain in LCA.

Cantonal financial aid for modest-income households, reducing the LAMal premium. Application to cantonal authority (OCAS, RIP). Threshold based on income and wealth.

Document modifying an existing insurance contract — address change, vehicle addition, deductible change. Signed by both parties, becomes part of the policy.

Official card from your insurer bearing your AVS number. Present at doctor, hospital, pharmacy. Reverse side is European Health Insurance Card for emergencies in EU/EEA.

Swiss Average Rate Overnight — reference rate that replaced LIBOR in 2022. Base for variable mortgages plus bank margin.

Linked private retirement savings. Contributions tax-deductible up to CHF 7,258 (employees) or CHF 36,288 (self-employed) in 2026. Withdrawal possible 5 years before AVS.

Mandatory occupational pension for employees earning over CHF 22,680/year. Contributions split employee/employer. Withdrawals allowed for property or self-employment.

Bank criterion for mortgage approval: total charges (interest at 5%, amortisation, upkeep) must not exceed 33% of gross annual income.

Progressive repayment of the loan principal. Direct (debt reduction) or indirect (payments to 3a/3b with pledge). Mandatory in Switzerland down to 65% of value.

Swiss central credit information bureau. Tracks loans, leases and defaults. Every credit application is recorded for 5 years.

Occupational Pensions Act. Governs Switzerland's mandatory pillar 2 since 1985.

Old-Age and Survivors' Insurance — Switzerland's mandatory pillar 1.

Swiss deposit insurance scheme. Protects deposits up to CHF 100,000 per bank per person in case of failure.

Swiss form of condominium ownership: you own your apartment plus a share of common areas.

Refinancing combines several loans into one at better rates. Reduces monthly payment and simplifies management.

Early withdrawal of pillar 2 or 3a for primary home, self-employment or definitive emigration. Taxed at preferential rate.

Credit information bureau for French-speaking Switzerland, equivalent to German ZEK.

Ratio of mortgage to property value. Capped at 80%.

Swiss quality label for low-energy buildings. Qualifies for green mortgage discount.

Swiss mobile payment app, alternative to Apple Pay/Google Pay. QR-code and P2P payments.

Pillar 3a investment in stocks/bonds. Historical 4-6% return. Recommended for >10-year horizon.

Open 3-5 pillar 3a accounts at different institutions to stagger retirement withdrawals, saving thousands in tax.

100% digital bank (Yuh, Neon, Zak, Revolut). Free accounts, low fees, no branches.

Swiss Financial Market Supervisory Authority. Regulates banks, insurers and brokers. All insurance brokers must register (LSA Art. 41).

Independent mediator for disputes between clients and financial institutions. Free to use, non-binding decisions usually respected.

Consumer Credit Act. Caps interest rates at 11% (12% for cards). Mandates affordability checks and 14-day withdrawal.

Federal Act limiting property acquisition in Switzerland by non-residents — maximum surface, property type, cantonal authorisation required.

Insurance covering lawyer, expert and court costs in case of dispute (work, neighbourhood, purchase, traffic). Typical limit CHF 250,000–500,000. 90-day waiting period.

Swiss 4-digit postal code that determines your LAMal premium region and therefore the rate applied to your address.