Dictionary of terms

Would you like to know more about life insurance, Understand the "insurance lingo" and learn more information crucial for your choice of insurance?

Amount of coverage/sum insured
is the sum paid out by the insurer should an insured event come to pass.

Insured event
is an accidental incident for which it is impossible to foresee when and whether at all it will occur. Occurrence of an insured event gives rise to obligation on part of the insurer to provide financial or nonfinancial compensation for the damages incurred in accordance with the insurance contract. Some of the possible insured events for life insurance include maturity, death, injury, illness or disability.

Term of insurance/insurance validity period
is the time period for which the insurance contract is entered into and remains effective. Throughout this period, insurance protection is provided to the client, that is, should there be an insured event within this period, the insurer will pay out the amount of coverage as agreed on.

Premium
is the sum you pay for your insurance, whether as a one-time lump sum payment, or in regular partial payments (monthly, quarterly, semi-yearly or yearly).

The insured (person)
designates the person whose life or health is covered by the insurance. You will also come across the term "policyholder". Policyholder is the person obliged to pay premium. In many cases, the insured person is also the policyholder.

Progressive indemnity
\ is an expression used in injury insurance policies. This means that in the event of injury, should you purchase a policy with progressive indemnity, the sum paid out to you is directly related to the gravity of the injury's effects. The resulting indemnity can reach multiple times the amount of indemnity paid out for common injury policies.

Investment strategy, investment funds, share units
are all expressions used frequently in investment life insurance policies. Your investment strategy is based on choice of funds wherein the money is to be invested. You can choose from money market, bond market and stock market investment funds. Each of these fund types has its own rate of risk and return. The choice is yours. The premium you pay is used to purchase the so-called share units, the price of which changes based on performance of the funds you selected. You are of course free to re-evaluate your strategy in the light of market developments and change it.

Guaranteed rate of interest
is the rate of appreciation of the money you save using the insurance policy. This rate stays the same throughout the term of insurance and is not affected by market developments.

Tax relief
is actually a way or the government to support certain forms of pension savings, in this case, by means of selected life insurance products. Our products in this category are the DYNAMIK Plus, GARANT Plus, SLNEČNICA, STRATÉGIA, KAPITÁL and OPTIMAL policies. In order to take advantage of tax relief, three basic conditions need to fulfilled. The period of premium payment is at least 10 years, indemnity on reaching maturity takes place once the insured person reaches the age of 55 years and the insured person is identical with the policyholder. The amount of income tax money you save depends on the sum of premium you pay: