You don't need to be an insurance professional to make a good decision – but without knowing fifteen words, every offer stays foggy. Here's the list: each term in one sentence, with a link to a deeper explanation. Five minutes, and the comparison table starts talking to you.
In short:
- These 15 terms cover most of the vocabulary you'll find in offers and policy terms.
- A detailed article stands behind every sentence – follow the links to go deeper.
- The full A–Z glossary lives on its own page: Glossary A–Z.
The money's path – 5 terms
- Tax credit: 20% of the premium you pay – subject to an annual cap – which NAV (the Hungarian tax authority) transfers to your policy if you make the declaration in your tax return (details).
- Premium: the regular (monthly/quarterly/annual) payment; most products also allow ad-hoc payments alongside it.
- Savings value: the current amount recorded on your policy – every payout calculation starts from this.
- Surrender: ending the contract early in exchange for the surrender value – with pension insurance, this comes with repaying the tax credits with a surcharge (penalty).
- Pension payout: the intended payout – as a lump sum, an annuity, or a mix of both (comparison).
How it works – 5 terms
- Classic structure: the insurer manages the savings as set out in the policy terms – focused on predictability (article).
- Unit-linked: the savings work within asset funds you choose – the client bears the investment risk (article).
- Asset fund: the investment unit of a unit-linked policy – available in money-market, bond, mixed, and equity-heavy variants (risk scale).
- Rebalancing (fund switch): reallocating the savings between funds – typically becoming more cautious as the target date approaches.
- Life-cycle solution: a ready-made path that automatically reduces risk as maturity approaches.
Costs and rules – 5 terms
- TKM: the total cost indicator – shows the plan's annual cost burden using a standardized methodology, meant for comparison (what it measures and what it doesn't).
- Initial units: the separately recorded, higher-charge portion of the first years' payments – the main cost of exiting early (details).
- Bonus / loyalty credit: conditional credits that reward sticking with the policy (weighed up).
- Indexation: a premium increase on the policy anniversary to keep pace with value – you're not obliged to accept it automatically (what to consider).
- 10-year rule: the time condition tied to favorable tax treatment of payouts (details).
Once you've spent these five minutes, the next step is putting it into practice: check out the types page, or ask your questions live – 20 minutes, free of charge.
A question about your own situation? Book a free 20-minute consultation →
This article is for general information only and does not constitute an offer, nor insurance, tax or investment advice. The exact terms are governed by the insurers' current policy conditions.
