poistného

Poistného is a Slovak term that translates to "insurance premium" in English. It refers to the amount of money an individual or entity pays to an insurance company in exchange for financial protection against specific risks. This payment is typically made periodically, such as monthly, quarterly, or annually. The size of the poistného is determined by various factors, including the type of insurance, the value of the insured item or person, the level of coverage desired, the insured's risk profile (e.g., age, health, driving history), and the insurance company's assessment of potential claims.

In essence, the poistného is the price of insurance. When an insured event occurs, such as an accident, illness, or damage to property, the insurance company uses the collected premiums to compensate the policyholder for their losses, up to the agreed-upon limits of the policy. If no claim is made during the policy period, the insurance company retains the poistného. Understanding the concept of poistného is fundamental to grasping how insurance works and the financial commitment involved in obtaining coverage.