In connection with an insurance contract dynamics designate the regular - usually annual - increase of the insurance. The characteristic of the dynamics consists apart from the automatism of the fact that no new risk examination takes place (e.g. no health examination in the life insurance). Dependent on the type of insurance (e.g. Special or Personenversicherung) is offered dynamics in different developments. As distinction criterion one uses:

• Kind of dynamic: Contribution or achievement dynamics
  • With the achievement dynamics the increase becomes on the basis of the insured achievement (e.g. Insured sum) computes. With 5% dynamics for example the insured sum of a life insurance is increased from 100.000 euro to 105.000 euro. The associated increase of the contribution (insurance premium) does not have to rise thereby compellingly around likewise 5%.
  • With the contribution dynamics the contribution is monthly increased by for example 5% by 100 euro monthly to 105 euro. The increase of the insured achievement does not have to amount to then likewise compellingly 5%.

• Volume range: Full or partial dynamics
  • With the full dynamics all components (main and additional insurances) of the insurance contract are increased.
  • With the partial dynamics only individual components, for example only the main insurance are increased.

• Increase yardstick: The increase yardstick can be after the height fixed, e.g. 5% annually or to another, clearly verifiable size coupled its (e.g. to the increase of the contribution assessment limit of the legal old age pension insurance, yearly income of the insured person, building cost index etc.)

The insurer is free generally in the organization of his offered dynamics, so that at the market very different kinds of play are. During most insurance it is also later still possible dynamics to an existing insurance contract to take up (if the tariff generally permits dynamics). However it usually comes with an additional inclusion to a renewed risk examination.

Before the background of the profound changes in the fiscal surrounding field of life insurances by the age income law (AltEinkG), the dynamic increase of before 2005 locked contracts represents an important strategy to on a long-term basis tax-privileged precaution.

Articles in category "Dynamics (insurance)"

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