Disability Insurance
Disability insurance is linked to private pension funds at Arion Bank. The insurance ensures that the income goal at the end of a lifetime's work is achieved despite a possible loss of income due to unexpected disability due to accidents or illnesses.
Questions and Answers
See all questions- How much does Disability Insurance cost?
The annual premium is equivalent to the first two contributions an individual makes to their private pension fund.
For example, an individual who pays ISK 31,975 per month into their private pension fund will therefore pay ISK 63,951 as the annual premium for the Disability Insurance.
The annual premium remains unchanged for the duration of the policy.
How is the insured amount determined?The insured amount is determined by the agreed annual premium, job title, and age. Since the annual premium remains unchanged upon renewal, the insured amount decreases with increasing age in accordance with the premium table.
- How is the premium paid?
The annual premium agreed at the outset is deducted directly from the balance of the private pension fund. A monthly verification is made with the private pension fund to pay premiums for this insurance.
If there are insufficient funds in the individual’s private pension fund on the first attempt, another attempt is made in the next verification, and this continues until the premium can be deducted from the fund balance, up to a maximum of 10 months later.
How is compensation paid?If a disability assessment is made, the compensation amount is paid directly into the individual’s private pension fund and is paid out in accordance with applicable laws on the payout of pension savings.
Insurance Explained Simply
Insurance can be complicated. To make things easier to understand, we have compiled all the key information about the insurance in an information document that can be viewed with the terms and conditions.