Life Insurance – Risk insurance of occurrence of various events related to life, bodily integrity or health of the insured person. Life insurance nature is that Insurer pays an agreed insurance sum when insured event occurs. Another important feature of life insurance is that insurance contracts can last for a long period of time (e.g. for 10, 15, 20, 25 years and more) and may also have saving nature.

Insurance agent – person or entity that performs insurance mediation on Insurer behalf and is rewarded for this by the Insurer.

Policyholder – person who signed the insurance contract with the insurer and pays premium required under insurance contract.

Insured person – person on whose life, health or bodily integrity the insurance contract is concluded.

Insurance policy – written document - evidence for insurance contract concluded.

Insurance premium – amount which policyholder pays to insurer under insurance contract. It can be single or divided into monthly, quarterly, half-yearly to yearly payments.

Insurance sum – the amount that the parties of the contract determine to be paid by the insurer to the insured person, respectively his beneficiary in case of insurance event or other conditions specified in the tariff or insurance contract. Insurance sum or its calculation method is spesified in the special conditions to the contract.

Insured event – event that occurs during the term of the insurance contract, and its risk is covered. At the time of the occurrence the insurer pays the insurance sum or covers other liabilities specified in the insurance contract.

Insurance year – a period of 12 consecutive months of insurance contract.

Accident – an unforeseen, sudden and accidental event with external origin occurred during the period of insurance contract, causing bodily injury to the insured person against his will.

Excluded risks – a risk not covered under the Insurance Code or mentioned in general terms to either primary or secondary insurance contract for which no compensation will be paid.

Covered risks – The main risk, as well as additional insurance risks which have been concluded in favor of the insured person or the policyholder are described in the specification sheet of the policy and provide the consumer insurance protection. The risks covered by a contract are specified in the special conditions.

Beneficiary (beneficial owner) –person who when an insurance event occurs is entitled to receive the insurance sum or part of it. In case of death of the insured person, the beneficiaries are the legitimate heirs, unless other is stated by the policyholder. For all other benefits the beneficiary is the insured person, unless other is stated in the policy.

Mutual insurance – insurance contract concluded by two persons on their linked lives and provided that there is insurable interest (spouses, persons living in de facto co-habitation, people in family relationship or partners in companies)

Temporary insurance coverage – enters into force at 24:00 h on the day when the Insurer receives the proposal, and provided that the first premium is paid by then. Temporary insurance coverage includes only the risk of death of the insured person with a maximum of € 2,500 / 5,000 Euro.

Surrender – amount which the Insurer pays in premature termination of the insurance.

Paid up – upon written request of the policyholder, or if the policyholder fails to pay the premium in the grace period, the insurance contract can be transformed into a paid up contract If at least two years have passed from the beginning of insurance coverage and the premiums have been paid regularly within the time and manner stipulated in the contract.

Resumption of the insurance contract – upon written request of the policyholder, terminated or paid up insurance contract may be renewed no later than 12 months from the end of the month for which the last premium is paid and provided that policyholder pays all due premiums plus interest for late payments, as well as the insured person to be in good health.

Investment account – each unit-linked Life insurance contract has an individual investment account opened by the Insurer. The Insurer manages the investment account and the total number of investment units on the contract.

Value of investment units – in unit-linked Life insurance, the value of investment units is calculated based on the total number of investment units in each individual fund, to which the insurance contract is linked, and their sell price.