Every profession builds a wall out of its words – this page tears it down. Here are the 30 key terms of pension insurance, each in one clear sentence, with a link to a deeper explanation. Tip: use the magnifying-glass button in the header to search directly for any term.
In short:
- 30 terms from A to Z, one sentence each – a quick reference for reading quotes and browsing policy terms.
- The quick-start version with 15 terms: basics in minutes.
- The English equivalents in a separate article: mini-dictionary EN-HU.
A-E
- Tax credit: 20% of the premium paid (up to an annual cap), which NAV transfers to the policy based on your tax-return declaration (article).
- Asset management fee: the annual cost charged for managing the asset fund, reflected in its unit price.
- Government bond fund: a cautious asset fund typically investing in Hungarian government securities.
- Insured (person): the person whose life and retirement the policy is tied to (roles).
- Bonus (loyalty credit): a credit paid at defined points in the term, subject to conditions (article).
- Premium waiver: a rider under which the insurer pays the premium during long-term incapacity for work.
- Making the policy paid-up: the policy continuing without further premium payments, with a reduced benefit.
- Premium holiday: temporarily suspending premium payments under the policy terms (effects).
- Health-impairment benefit: the payout that opens up at a health impairment of typically 40% (article).
- Asset fund: the selectable investment unit of a unit-linked policy (risk levels).
- Ad-hoc (top-up) payment: a one-off payment on top of the regular premium – the main tool for making full use of the cap.
E-K
- Indexation: a policy-anniversary premium increase to offset inflation (decision).
- Policy anniversary: the policy's annual anniversary date – the time for the review and the indexation decision (routine).
- Life-cycle solution: a path that automatically lowers risk as the target date approaches (article).
- Annuity: a benefit form that turns the savings into a monthly payout (comparison).
- Beneficiary: the person entitled to the death benefit, named by the policyholder (naming a beneficiary).
- Initial units: the separately recorded, higher-charge portion of the first years' premiums (article).
- Classic (traditional) insurance: a savings form managed by the insurer under fixed rules (article).
- Underwriting: the insurer's procedure for assessing the risk it takes on (article).
- Rider: a protection element attached to the main policy (e.g. accident, incapacity for work).
- Policy document: the insurer's document certifying that the contract has come into existence.
L-S
- Maturity: the point when the policy reaches its goal – for pension insurance, tied to the retirement age in force at signing.
- Non-forfeiture options: tools for managing a change in circumstances without ending the policy (making it paid-up, surrender).
- NAV declaration: claiming the tax credit in your personal income tax return (practice).
- Retirement age (in force at signing): the old-age retirement age in force when the policy was signed, which governs the policy throughout its term (article).
- Pension benefit: the policy's payout for its intended purpose, with favorable tax treatment (opening up).
- Rebalancing: rearranging the savings among the asset funds.
- Equity fund: an asset fund with higher volatility and greater long-term growth potential.
- Policyholder: the person who signs the policy and pays the premium – typically also the one who makes the tax-credit declaration.
- Personal income tax return: the annual tax return in which the tax-credit declaration can be made.
T-V
- Technical interest rate: the calculation interest rate fixed in the terms of a classic policy – a calculation element, not a market promise.
- TKM: the total cost indicator – a value summarizing the policy's annual cost burden, meant for comparison (article).
- Surplus distribution: in a classic policy, sharing out the result above the calculation basis, under the policy terms.
- Unit-linked: a form tied to investment units – the client bears the investment risk (article).
- Asset-based charge: a regular deduction charged as a percentage of the savings value.
- Surrender: ending the policy early – for pension insurance, with repayment of the tax credits increased by 20% (the sanction).
- Surrender value: the amount due on surrender under the policy terms (the consequences).
- The 10-year rule: the time condition for the favorable tax treatment of payouts (article).
Missing a term? Let me know – the glossary is a living list that grows from readers' questions.
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.
