In the world of savings-linked insurance, the TKM is the consumer's compass: it compresses a design's cost burden into a single percentage figure. It isn't a perfect indicator – but without it, we'd be comparing blind. Here is the full user's guide.
- The TKM shows how much cost burden, on average per year, falls on your savings because of the product's costs.
- The same product has several TKM values (depending on term and asset fund) – always compare the same term.
- The TKM doesn't measure the tax credit, the insurance protection, or the quality of the asset funds – those need to be weighed separately.
What does the TKM compress into one number?
TKM (the total cost indicator) started out as insurer self-regulation (the MABISZ TKM Charter, 2010), and since 1 January 2016 its uniform calculation and publication have been required by MNB Decree 55/2015 (XII. 22.) – which is why it's comparable across products. Because every insurer calculates and publishes it the same way, the indicator is built for comparing products against each other – which is exactly what we use it for when requesting quotes.
Professional recommendations for pension insurance also set out TKM ceilings. We deliberately don't publish specific providers' TKM figures on this page – the comparison table shows the ranges, calculated for your term.
How should you compare properly?
- Look at the same term: the TKM differs by term (10, 15, 20 years), and a shorter term is typically more expensive – two products can only be compared on values for the same term.
- Look at the range too: the TKM differs by asset fund; the gap between the cheapest and the most expensive fund is informative on its own.
- Ask what's behind it: bonus and loyalty credits can shade the picture – these typically come with conditions, near the end of the term (details).
In my comparison table, the TKM appears for the same term, together with the range – so the decision is grounded in cost, not marketing.
What the TKM doesn't see
The TKM is a cost indicator – not a value indicator. It doesn't measure the state tax credit (which is unique to pension insurance and meaningfully improves the net picture), the value of the built-in insurance protection, the quality of the asset-fund range, or the level of service. A lower TKM with a weaker fund palette can produce a worse end result than a slightly more expensive, better design.
The right order is therefore: first your goal and risk profile, then TKM-filtering of the products that could work, and only then the details. We do this filtering together after the needs assessment – with numbers, without overselling.
Why is it worth bothering with?
Because the cost level matters enormously over the long run: over a decades-long term, even a few tenths of a percentage point per year grows into a meaningful sum. The good news is that this difference can be caught not by luck but by comparison – which is exactly what the TKM is for.
The full cost topic is developed further in the cost components and 10-point cost checklist articles.
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