Insurance covers which are paid monthly in the event of illness and death can be determined either as a kronedækning where the insurance cover is determined as a fixed amount or a procentdækning where the isurance cover is determined as a percentage rate of the retirement pension at age 68.
You can read more below.
It is possible to choose a kronedækning under the following Regulations:
When you chose a kronedækning, you determine the size of the insurance cover as an annual amount. It is the size of the calculated pension that is determined. The calculated pension comprises a basic and supplementary pension. The supplementary pension is paid through bonus.
When you chose a kronedækning, the basic pension is fixed as a percentage cover of the retirement pension based on the ratio between the covers of the calculated pension. The ratio is adjusted concurrent with the development of the pension scheme and may result in the basic pension being adjusted on one or several other covers or the retirement pension.
A kronedækning which is not in payment is adjusted annually with the retail prices index. The adjustment may affect the size the covers that are not based on a kronedækning and the retirement pension.
If you receive temporary or permanent disability pension benefits, a kronedækning which is not in payment are not adjusted annually.
When a kronedækning becomes payable, the paid calculated pension benefits may continually be adjusted both upwards and downwards as it appears from the Bonus regulations.
When you start receiving retirement pension benefits, or you are transferred to dormant membership, all covers based on a kronedækning are changed to procentdækning. The cover is determined differently depending on whether you start payment of the linked retirement pension, or you become a dormant member.
On transfer to retirement pension, the linked insurance covers cannot be maintained as a kronedækning. The calculated pension of the insurance cover is not changed, but instead of continuing as a kronedækning, it is changed to a procentdækning. The percentage is calculated on basis ofthe insurance cover and retirement pension, both at the time of retirement.
Hereafter, the insurance cover follows the development of the retirement pension. This means that the insurance cover may be adjusted both upwards and downwards as appears from the Bonus regulations.
On transfer to dormant membership, an insurance cover cannot be maintained as a kronedækning. The calculated pension of the insurance cover is changed to a percentage rate of the calculated retirement pension at age 68. On transition to dormant membership after age 68, the insurance covers are fixed as a percentage rate of the calculated retirement pension you are entitled to. On the pension statement a procentdækning after age 68 is shown at the next whole age (age 69, age 70 etc.).
The percentage ratio of the insurance covers on a previous kronedækning is determined according to the rules applying to the pension agreement:
P+ Regulations 2019:
P+ Regulations 2007, former JØP Regulations 2:
P+ Regulations 2006, former DIP Regulations 4:
A procentdækning implies that the insurance cover is fixed as a percentage of the calculated retirement pension benefits at age 68. After age 68, the cover calculated as a percentage is fixed relative to the calculated retirement pension benefits you are entitled to. On the pension statement the covers calculated as a percentage after age 68 are shown at the next whole age (age 69, age 70 etc.).
However, this does not apply to the following pension agreements: P+ Regulations 1983, former DIP Regulations 1, P+ Regulations 1999, former DIP Regulations 2 and P+ Regulations 1973 former JØP Regulations 1.
You may have fixed your insurance covers at different percentage rates compared to the ones applying to the pension agreement. This may imply that the insurance cover percentage becomes different on transfer to dormant membership where the insurance covers are fixed according to the rules applying to the pension agreement.
P+ Regulations 2019:
P+ Regulations 2007, former JØP Regulations 2:
P+ Regulations 2006, former DIP Regulations 4:
However, this does not apply to members subject to limited cover or a high savings scheme, members who are employed in a flexi job or the like, members who receive public early retirement benefits, and members under the following pension agreements: P+ Regulations 1983, former DIP Regulations 1, P+ Regulations 1999, former DIP Regulations 2 and P+ Regulations 1973, former JØP Regulations 1.