Do I need to change my insurance bills?
However, this may change in the future, as households feel the effects of the economic crisis in the longer term due to the second wave. Rising unemployment and prolonged foreclosures may force many to draw on additional reserves, including life insurance accounts. For investment-type life insurance, the general rule is that if you withdraw the sum assured plus interest (i.e. buy back the policy) in the first 5 years, interest tax of 15% is deducted on the return.
If you buy back the policy in the sixth year after signing the contract, you only pay half the interest tax, and from the tenth year onwards the yield is completely free of interest tax.
Pension insurance is a separate category: the yield on such policies is subject to basically the same tax rules as interest on all other life insurance policies, but with an additional tax relief that allows you to write back 20 percent of your contributions, up to HUF 130,000 per year, from your personal income tax paid on your gross salary. This option is taken up by 60-70% of customers, but if we withdraw the amount at any time before the maturity date (i.e. before reaching retirement age), we will have to pay back to the state the amount of the tax credits increased by 20%.
How life insurance will fare in the near future will depend largely on the financial situation of existing and potential customers. According to , the epidemic has increased confidence in insurers and boosted the value of insurance, which should keep demand for insurance high next year. There is potential for growth in life and pensions insurance, based on the high cash holdings of the population. The question is whether people will have enough money left to invest next year. The insurance association seems to be rather pessimistic in this respect, saying that the epidemic will take hold in the lives of insurers and that the impact will be felt next year.
We have the greatest confidence in health insurance, but it is not the most widespread
According to a survey conducted by the Foundation on behalf of MABISZ, the perception of insurers continued to improve during the epidemic, continuing a trend that has been in place for several years. The Insurance Confidence Index (BIBIX), a measure of overall market satisfaction, rose from 51.9 last year to 55.8 in October this year.
Of the different types of insurance, people are most confident in health insurance, with a confidence index score of 81.4 (as previously reported, whether health insurance is offered as a fringe benefit is also becoming increasingly important when choosing a job). Despite this, health insurance is not the most common type of insurance, with the survey showing that 73.9 percent of Hungarian adults have home insurance.
70.7 percent have , 50.8 percent have life insurance and 46.6 percent have accident insurance.
After health insurance, the perception of accident insurance is the most positive (80.8 points), with home insurance in third place (80.6 points). Satisfaction is lowest among those with travel insurance, with a score of 78.4 points on a 100-point scale, and satisfaction with CASCO has increased the most compared to the previous year (4.6 points increase).
