It’s important to us to explain the complex topic of the occupational benefit scheme as comprehensibly as possible. However, sometimes we cannot get around using technical terms. In our glossary we explain these technical terms briefly and in a reader-friendly manner.
Life insurance without premium refund
Where an insured person dies before reaching the maturity age, the insurance lapses and no benefit is paid.
Life insurance with premium refund
Where an insured person dies before reaching the maturity age, the insurance company refunds the premiums paid up to the time of death (without interest).
Linked savings plans
Linked savings plans (or restricted pension plans) are a way of saving for retirement which provides tax privileges. They are designed to supplement Pillars 1 and 2. Because the money saved must serve exclusively and irrevocably as part of long-term savings, this form is described as "restricted". Due to the tax privileges inherent in such pension plans, restrictions are imposed on their conclusion, structure and disposition of claims, on the basis of legal provisions. As well as saving for retirement, provisions for death and disability may also be structured and combined in accordance with individual needs. Recognised forms of this kind of pension plan include restricted pension plans available from insurance companies and restricted pension agreements offered by bank foundations.
Lump-sum payment (BV)
An amount of money that is paid out from the occupational pension as a one-time benefit. This is combined with the settlement for the surviving spouse.