If you are self-employed in Switzerland and fall ill, you have a problem: there is no continued salary payment. OR Art. 324a does secure employees' salaries for a limited time — but this protection only applies to employees. For the self-employed, income drops to zero during illness. This is exactly where daily sickness benefit insurance in Switzerland comes in: it pays you a daily allowance when you are unable to work due to illness. This guide explains what the KTG costs, how the Karenzfrist (waiting period) works, when the insurance is mandatory, and how to deduct it from your taxes.

Fees, surcharges and payment terms are negotiated. Obtain a quote for your situation; example amounts are not market data.

The key facts at a glance

• Fees, surcharges and payment terms are negotiated. Obtain a quote for your situation; example amounts are not market data.
• Karenzfrist (waiting period): 14–30 days — during this time the KTG does not pay
• Daily benefit: usually 80% of your most recently earned income
• KTG premiums are tax-deductible as business expensesKey takeaways For consistent invoice details and records, use the Swiss invoice template or bookkeeping software. Hypothetical example: amounts illustrate the calculation only. They do not describe a real customer or a guaranteed outcome.

What is daily sickness benefit insurance (KTG)?

Daily sickness benefit insurance is an insurance policy that pays you a daily allowance when you cannot work due to illness or accident. It replaces part of your earned income — typically 80% — and closes the gap that arises when, as a self-employed person, you have no entitlement to continued salary payments.

Important: KTG is not the same as your health insurance. Regular health insurance (KVG, the compulsory basic health insurance) covers the costs of doctor visits, hospital stays, and medication. It pays the medical bills. KTG, on the other hand, does not pay a single franc to doctors — it pays money to you so you can cover your living expenses while you are sick. These are two entirely different types of insurance with different purposes.

KTG is based on the Health Insurance Act (KVG). KVG Art. 3a regulates the daily benefit insurance as an optional component of health insurance. You can find the current wording of the law on admin.ch under SR 832.10 (Health Insurance Act). The daily benefit insurance can be taken out with the health insurer that also manages your basic insurance — or with a separate insurance company that offers KTG products.

Why the self-employed need KTG

For the self-employed, OR Art. 324a does not apply. No employer, no continued salary payment. If you as a freelancer fall ill for six weeks, your income stops on day one. Invoices you cannot issue go unpaid. Clients you cannot serve find another solution. This can be existentially threatening — especially for solo self-employed people without reserves.

Fees, surcharges and payment terms are negotiated. Obtain a quote for your situation; example amounts are not market data.

If you are considering taking the leap into self-employment, the guide Becoming a freelancer in Switzerland provides an overview of all the costs you will face — including KTG.

Waiting period (Karenzfrist) and waiting days explained

The Karenzfrist (waiting period) is the waiting time before the KTG begins to pay. During the waiting period, you receive no daily allowance. You choose the waiting period when you take out the insurance — and it has a direct impact on the premium.

Typical waiting periods:

The logic is simple: the longer you bear the risk yourself, the cheaper the insurance. Most self-employed people choose 30 days — a compromise between premium and protection. Anyone with enough reserves to survive three months without income can choose 90 days and save significantly on the premium. Those without reserves should choose 14 days or even 7 days — but pay more.

Waiting days (Karenztage) are the individual days within the waiting period. If the waiting period is 30 days and you are ill for 35 days, the first 30 days are waiting days (no payment), and the KTG pays for days 31 to 35 — i.e. five daily benefits.

Practical tip: If you have reserves covering at least three months of expenses, choose a 30-day waiting period. That is the sweet spot between premium and protection. If you have no reserves, choose 14 days — but build up reserves in parallel so you can bridge the waiting days.

How much does daily sickness benefit insurance cost?

Fees, surcharges and payment terms are negotiated. Obtain a quote for your situation; example amounts are not market data.

The most important price drivers:

• Age: Younger insured persons pay less. From age 40 onwards, premiums rise noticeably.
• Health status: With pre-existing conditions, the insurer may apply a surcharge or agree exclusions.
• Daily benefit amount: The higher the daily benefit (e.g. 80% vs. 60% of income), the higher the premium.
• Waiting period: Shorter waiting period = higher premium.
• Insurance type: Daily benefit insurance with a health insurer (KVG-compliant) vs. private insurance.
• Daily benefit: 80% of her most recently earned income
• Waiting period: 30 days
• Benefit duration: 720 days
• Fees, surcharges and payment terms are negotiated. Obtain a quote for your situation; example amounts are not market data.

If you track your income and expenses cleanly, you know exactly how high your daily benefit needs to be. With invoicing via Magic Heidi you keep your income in view — and know exactly how much you need to replace in the event of illness.

KTG deduction: deducting daily sickness benefit insurance from taxes

Good news: KTG premiums are tax-deductible for the self-employed. They count as business expenses and thereby reduce your taxable net profit. This means you not only bear less risk, but also pay less tax.

The ESTV (Federal Tax Administration, Eidgenössische Steuerverwaltung) treats daily sickness benefit insurance premiums for the self-employed as deductible business expenses — provided the insurance serves to secure earned income. This is regularly the case for the self-employed. You can find the official guidelines on the ESTV website under the documents on profit tax for the self-employed.

A sample calculation:

This also applies to other business expenses. Anyone setting up a sole proprietorship should record all business expenses cleanly from the outset — KTG premiums, professional liability insurance, software, work equipment. Every deductible franc reduces the tax burden.

Note: If you receive KTG daily benefits as a self-employed person, these are generally taxable as replacement income. You must declare them as income on your tax return. This is not a disadvantage — it is simply the flip side of the coin: premiums are deductible, daily benefits are taxable. The ESTV publishes current information sheets on this topic.

If you are wondering what other expenses you can deduct, it is worth taking a look at the guide on VAT accounting for freelancers — it primarily deals with MWST (Swiss VAT), but the structure of business expenses is the same.

Daily sickness benefit insurance: mandatory or voluntary for the self-employed?

The answer depends on whether you employ staff or not.

For self-employed without employees: voluntary.

If you hire employees, you must also register with the AHV and prepare payroll. The criteria for self-employment are set out in AHVG Art. 2–3. You can find information on this at ahv.ch. Anyone who is self-employed on a part-time basis will find further guidance on AHV and social insurance in the guide on part-time self-employment in Switzerland.

Comparing providers: health insurer vs. insurance company

If you want to take out a KTG, you have two types of providers to choose from: KVG-recognised health insurers and private insurance companies. Both offer daily benefit insurance, but with differences.

KVG-recognised health insurers:

Insurers such as Swica, Helsana, CSS, KPT, and Sanitas offer daily benefit insurance as an add-on to basic insurance. The advantages: they often have no medical selection process, acceptance is generally guaranteed, and premiums are calculated on a risk-adjusted basis. KVG-compliant daily benefit insurance is particularly attractive for self-employed people looking for a simple solution without a health check.

• Swica: Daily benefit insurance with flexible waiting periods (7–90 days), selectable benefit duration.
• Helsana: KTG with various daily benefit models, combinable with basic insurance.
• CSS: Daily benefit with selectable daily benefit rate and waiting period.
• Sanitas: Transparent daily benefit models, digital administration.

Private insurance companies:

Insurers such as AXA, Die Mobiliar, and Baloise offer KTG products that can be taken out independently of a health insurer. The advantages: often more flexible design, higher daily benefits possible, selectable terms. The disadvantages: a health check is often required, exclusions for pre-existing conditions are possible, and premiums can rise with age.

What to look out for when comparing:

1. Daily benefit amount: What percentage of income is replaced? 80% is standard; some providers offer up to 100%.
2. Waiting period: Choose one that matches your reserves.
3. Pre-existing conditions: Are these excluded or covered with a surcharge?
4. Health check: Is a medical examination required? Usually not with KVG insurers, but often with private insurers.
5. Flexibility: Can you change the daily benefit and waiting period later?
6. Cancellation period: How flexibly can you switch insurers?

Practical tip: Obtain at least three quotes — from one health insurer and two private insurers. Compare not only the premium but also the terms and conditions. The cheapest KTG is not the best if it does not pay out for the illness that actually hits you.

Compare the features your business needs and consult bexio pricing for current prices. Magic Heidi Free includes 3 invoices and 3 expenses. Pro costs CHF 25.00 a month billed annually (CHF 299.00 a year), or CHF 39.00 billed monthly. See pricing.

Frequently asked questions (FAQ)