The vocabulary of life insurance isn't large – it's just rarely explained. Here is the full basic glossary: every term in one plain sentence, and a link wherever a deeper explanation lives in Insights. Tip: use the magnifying-glass button in the header to search for any term.
In short:
- More than 30 terms, in alphabetical order, one sentence each - a quick help for reading quotes and policy terms.
- A quick primer on the 15 core terms shown in bold is in a separate article: the basics in minutes.
- Found a missing word? Do let us know - the glossary is a living document that grows from readers' questions.
B-D
- Accidental death rider (baleseti halál kiegészítő): pays an amount on top of the base sum if death is caused by an accident - details.
- Insured event (biztosítási esemény): the event defined in the policy terms, on the occurrence of which the insurer pays out.
- Sum assured (biztosítási összeg): the amount fixed in the policy that the insurer pays when the insured event occurs.
- Insured person (biztosított): the person whose life the policy is written on - who is who.
- Decreasing cover (csökkenő összegű fedezet): the sum assured decreases on a pre-set schedule - typically together with a loan balance: cover alongside a loan.
- Premium (díj): the price of the insurance protection; a function of age, health, sum assured, term and riders.
- Premium waiver (díjátvállalás): a rider under which the insurer takes over premium payment in defined situations - details.
- Making the policy paid-up (díjmentesítés): a savings-based policy continuing without further premiums, at a reduced benefit.
E-K
- Health declaration (egészségi nyilatkozat): the basic document of underwriting - how to prepare.
- Maturity benefit (elérési szolgáltatás): the end-of-term payout of a savings-based (endowment) policy - endowment life insurance.
- Assignment (engedményezés): tying up a defined part of the benefit in favour of the bank under credit life cover.
- Loading (felár, pótdíj): a premium surcharge for higher-than-average risk - what you can do.
- Term (futamidő, tartam): the period the protection runs for - how to choose.
- Indexation (indexálás): an anniversary increase in premium and sum assured to keep pace with value - accept it or not.
- Beneficiary (kedvezményezett): the person the insurer pays the benefit to - why name one.
- Income protection rider (keresőképtelenség-fedezet): a daily benefit or income for longer periods of sick leave - details.
- Exclusion (kizárás): situations listed in the policy terms that are carved out of cover - the honest version.
- Underwriting (kockázatelbírálás): the insurer's risk-assessment and pricing process - how it works.
- Term life insurance (kockázati életbiztosítás): pure protection with no savings element - our focus.
- Duty of disclosure (közlési kötelezettség): the obligation to disclose material facts truthfully - what's at stake.
- Critical illness cover (kritikus betegség fedezet): a rider that pays out while you're alive on defined diagnoses - what it covers.
- Key person insurance (kulcsember-biztosítás): cover a company takes out on the life of a person critical to the business - for businesses.
M-T
- Release from the obligation to pay (mentesülés): a situation, defined by law or the policy terms - typically a breach of the duty of disclosure - in which the insurer may be released from its obligation to pay.
- Reinstatement (reaktiválás): restoring, under the policy terms, a contract that lapsed due to non-payment - how.
- Disability rider (rokkantság-kiegészítő): an element that pays out at a defined degree of health impairment - types.
- Policyholder (szerződő): the person who takes out the policy, pays the premium and gives instructions on it - the roles.
- TKM - total cost ratio (teljes költségmutató): an indicator that makes the annual cost burden of savings-based life insurance policies comparable.
- Survival period (túlélési időszak): in some critical illness covers, a period fixed in the policy terms after diagnosis that you must survive for the payout to be due.
- Grace period (türelmi idő): the period after a premium falls due during which it can still be paid without consequences - missed premiums.
U-V
- Unit-linked life insurance (unit-linked életbiztosítás): a form tied to investment units - the policyholder bears the investment risk: details.
- Waiting period (várakozási idő): the period after taking out the policy during which benefits may be limited - details.
- Endowment life insurance (vegyes életbiztosítás): protection plus savings in one policy - when and for whom.
- Surrender value (visszavásárlási érték): the amount due, per the policy terms, when a savings-based policy is ended early - the honest maths.
Want the vocabulary in English too? The bilingual version: EN-HU mini-dictionary. A quick primer on the 15 most important terms is in a separate article: the basics in minutes.
A question about your family's situation? Book a free 20-minute consultation →
This article is for information purposes only; it contains general information and does not constitute an offer or insurance advice. The exact content of insurance contracts is defined by the insurers' terms and conditions in force.
