Kötvény 2027: A Capital-Protected Option

Kötvény 2027 is a fixed-term, capital-protected investment structure available in Hungary, designed to be held until its maturity in May 2027. It allows a one-off amount to be placed into a low-risk structure with a predefined return, provided it is held to the end.

For many business owners, the most difficult investment decision is not where to take risk, but where not to. There is often a portion of capital that simply needs to stay intact for a defined period. Not for growth. Not for speculation. Just parked, predictable, and available when planned.

In Hungary, there are a few structured options designed specifically for this mindset. Kötvény 2027 is one of them. It is not widely discussed, and it does not try to be exciting. But for the right type of decision-maker, it is worth understanding how it works before dismissing it.

Not all capital needs to be busy

Most entrepreneurs are comfortable with calculated risk in their core business. What they are often less interested in is uncertainty around funds that already have a job to do in the future.

Short-term reserves, retained earnings earmarked for a specific purpose, or capital that simply needs to hold its value over a known timeframe tend to require a different approach. Liquidity, predictability, and clear rules matter more here than upside potential.

Kötvény 2027 sits firmly in this category. It is designed for people who prefer knowing the rules in advance, even if that means giving up flexibility along the way.

Minimal desk setup in natural light representing careful, long-term financial planning

Planning doesn’t always need momentum. Sometimes it needs clarity.

What “price protection” involves

The term árfolyamvédelem is often translated as “price protection”, but it is important to understand what this actually commits you to.

In simple terms, the protection applies at maturity only. The structure is built around a fixed end date. If the investment is held until that date, the predefined protection applies. If it is exited early, it does not.

This is not a hidden condition. It is the foundation of how the structure works.

Kötvény 2027 is therefore not suitable for funds that may need to be accessed unexpectedly. It is designed for capital that can be left untouched until maturity, without second-guessing.

How Kötvény 2027 is set up

Kötvény 2027 is a fixed-term, capital-protected investment structure available through unit-linked life insurance policies offered by Generali Biztosító Zrt..

The key dates are clearly defined:

  • Subscription period: 24 January to 24 April 2026
  • Start date: 4 May 2026
  • Maturity date: 3 May 2027

Contributions are made as a one-off payment during the subscription period. Regular monthly payments are not part of this structure.

The underlying assets consist of forint-denominated securities issued by the Hungarian state and the Hungarian central bank. The risk profile is classified as low, and the structure is intended to be held until maturity.

There are two closely related versions, Kötvény 2027/M and Kötvény 2027/A, which differ mainly in how costs are applied within the insurance framework. The investment logic itself remains the same.

Where the return comes from

Returns are determined in two distinct phases.

First, during the subscription period, contributions earn a temporary annualised interest of 5.3%. This applies only while the fund is being set up. From a practical perspective, earlier participation during the subscription window increases the benefit of this phase.

Second, the return at maturity is defined by a formula set in advance. It is based on:

  • the Hungarian central bank base rate as of 29 April 2026
  • plus a fixed margin of 1.5 percentage points

The final rate is established once, before the investment period begins, and applies at maturity on 3 May 2027.

There is no attempt to predict where interest rates will move. The structure is deliberately conservative and rule-based.

Who tends to use structures like this

In my experience, structures like Kötvény 2027 tend to appeal to a specific type of decision-maker.

Typically, these are people who:

  • plan in timelines rather than reacting to market noise
  • are comfortable locking capital for a known period
  • value clarity over optionality
  • prefer to separate operational funds from longer-term reserves

It is often business owners, company directors, or individuals managing short- to medium-term capital who take the time to explore options like this.

It is less suitable for anyone who needs flexibility, frequent access, or the ability to change direction midway.

What to be comfortable with upfront

Before considering any structure of this type, there are a few points that need to be accepted calmly and honestly.

  • Liquidity is limited. Early exit means the protection does not apply.
  • The timeline is fixed. This is not adjustable once the structure starts.
  • Returns are defined, not open-ended. There is no upside beyond what is set.
  • This is not an ESG-focused product. It falls under the EU’s SFDR Article 6 classification, meaning it does not pursue sustainability objectives.

None of these are drawbacks if they align with your intention. They are simply conditions.

Understanding and accepting them upfront is far more important than focusing on projected numbers.

FAQ

Is Kötvény 2027 a bond?

Kötvény 2027 is not a single bond, but a fixed-term, capital-protected investment structure. It invests in forint-denominated securities issued by the Hungarian state and central bank, within an insurance-linked framework.

Why is it called Kötvény 2027 if subscriptions are in 2026?

The name refers to the maturity year. Subscriptions take place in early 2026, but the predefined protection applies at maturity in May 2027.

Can I access the money before maturity?

Early access is possible, but the capital and return protection apply only at maturity. Exiting before May 2027 means those protections no longer apply.

Who is Kötvény 2027 typically suitable for?

It tends to suit business owners and individuals who can commit capital for a fixed period and prefer predictability over flexibility or higher-risk returns.

Before deciding

I often speak with business owners who are not looking to “do more” with their money, but to stop worrying about a portion of it altogether. Structures like Kötvény 2027 exist for exactly that reason. Whether it belongs in your own planning depends on timelines, comfort with structure, and what that capital needs to do next.

Whether it is appropriate or not depends entirely on individual circumstances, timelines, and priorities. That is a conversation worth having properly, with context, rather than rushing to conclusions.

If you would like to understand how this type of structure might fit into your broader financial planning, I am always happy to talk it through and answer questions in plain language, without pressure.

Sometimes, the most sensible decision is simply choosing not to make capital work harder than it needs to.

Health Insurance Packages For Businesses During The Coronavirus Pandemic

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In response to the situation caused by the coronavirus outbreak, Generali has supplemented its collective risk insurance with two new additional services.

The Shield (Pajzs) insurance not only provides a daily hospital allowance for coronavirus patients, but it also compensates for incurred costs.

Daily allowance for Covid-19

In the event of contracting COVID-19 with no symptoms before the risk exposure begins, the daily hospital allowance provides coverage for inpatient care in hospitals, in any facility approved by the competent and professional supervisory authority of the given country, anywhere in the world.

  • The deductible covers 7 days, after that the payout is the insured amount multiplied by the number of days spent in hospital care.
  • For the days spent in intensive care, the insurance pays 200% of the insured amount.
  • The allowance may be claimed once for no more than 10 days after the deductible runs out.

COVID-19 cost reimbursement

In the event of contracting COVID-19 with no symptoms before the risk exposure begins, this product covers the incapacity for work of an infected person after treatment at a designated inpatient unit of a hospital, which gives rise to specific costs for the insured person that can be proved by an invoice issued in the person’s name in Hungary.

  • Cost reimbursements may be claimed in relation to the incapacity for work period starting from the first day of their discharge from the hospital, but for no more than 14 days.
  • The insurance product covers the one-off costs of any transfer home, and the transfer to the location of the check-up examination and back home.
  • It also reimburses the costs of a babysitter/child-minder, dog-walking, a cleaning lady or the delivery of hot and cold meals/drinks.

The two new products are available for all businesses (both for existing and new clients).

The contract is governed by the employer terms and conditions of the Shield insurance, and it can be concluded as a separate contract.

Further conditions:

  • the coverage must be extended to all employees, minimum number: 10 people
  • it is possible to differentiate between the insured persons
  • the contract is concluded for a term of 10 months
  • one-off premium
  • no modification, no termination by mutual agreement, the premium may not be reclaimed
  • no waiting period, no risk assessment.

Feel free to contact me if you have any additional questions:
by email at balazs.eszter(at)generalimail.hu or on the  +36 20 359 67 36 telephone number.

Misconceptions About Insurance During The Pandemic

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Just like in many other spheres of life, news and (half) truths are also circulating in the world of insurance about which types of insurance you should or shouldn’t take out, about healthcare services, and about equity funds.

In our article below we try to collect together – and refute – some of these.

 

  1. There is no need for accident insurance now

Unfortunately, accidents can happen at any time. Often when you are at home, or in the kitchen. More and more of us are working from home, which is very important to slow the spread of the pandemic. But this can increase the number of household accidents. According to data from the Hungarian Central Statistical Office, the number of household accidents totals 250,000 per year.

Accident insurance covers you regardless of the coronavirus, so it is worth keeping it.

  1. Life, accident and health risk insurance does not cover virus-related costs

You can count on your life and health risk insurance. Any client who is admitted to hospital with the coronavirus is entitled to the daily hospital allowance included in health risk insurance. The exception is if a client is admitted to a healthcare institution without any symptoms, just for the sake of isolation. The insurance company pays for incapacity to work if the insured person is unable to work owing to the coronavirus and is sent on sick leave. In line with the life risk insurance policy, the insurance company pays compensation for death even if it was caused by the coronavirus infection.

  1. Do not take out risk insurance now, the waiting period is too long anyway

You may need fast and reliable help in the event of an accident, illness or death. In many cases these insurance products cover you in relation to the coronavirus too (see previous point), and the six-month waiting period valid for life risk insurance can be lifted by means of a health statement given over the phone.

  1. It is not worth it for employers to take out life, accident and health risk insurance for their employees

A wide scope of protection and financial help are indeed necessary as caring employers are more valuable than ever before. In the current situation, your home office is not a place to live, but a reorganised workplace, so if an employee suffers an accident when working from home, the employer must compensate them for it.

What is more, employer life, accident and health risk insurance can be granted as tax-free benefits, if this only covers working hours and commuting time (protection at work and on the way to work). Collective insurance offers financial support for insured employees in the event of an illness or accident, be it an accident at home or an illness due to the coronavirus. With Generali Shield insurance there is no waiting period for any risk.

  1. Health insurance financing services cannot be used

A number of private clinics are still operating, but during the pandemic private healthcare institutions have their own procedures with regard to the coronavirus. As a result, certain types of care are not available in the traditional manner, but new services are continuously being introduced.

With your Medihelp international health insurance you can arrange your private healthcare examinations quickly at your preferred facility. In such critical times it is even more important that if you cannot avoid having a medical check-up or examination, then this should take place with the utmost care and protection and at your preferred private clinic if possible.

You can only be treated for the coronavirus as a hospital inpatient in the public healthcare system, but our existing Medihelp insurance pays HUF 15,000 compensation for each day spent in hospital if you have a Hungarian social security card and have contracted the disease.

For clients who do not have a Hungarian social security card (for example foreigners living in Hungary), the insurance reimburses any hospital costs invoiced to them, including patient transfer services too.

But for every health problem it is still worth contacting the service organiser.

  1. You should plot your escape from asset funds with high equity exposure

A wait-and-see approach is much more justified at the minute. The next 12 months may bring even tougher times for the equity markets, and leading stock indices are expected to continue fluctuating heavily. So it is very important to monitor and evaluate current portfolios in the event of unit-linked life insurance, and then make decisions on possibly rearranging the portfolios or just holding off for now to avoid immediate losses.

  1. I can only get my money deposited in life insurance savings back if I terminate the contract

Do not forget about the options of partial surrender or policy loans. If you need money and already have saved enough, and if the contract terms allow it, you may use the partial surrender option. For most life insurance products with a savings component you may take out a policy loan too. This means you can claim a one-year loan against the surrender value of the savings, which, if paid back in time, will not affect the tax-credit of the pension insurance either.

  1. Now is not the time to invest

It is practical to think about investing carefully, broken down into several steps. In the current situation a short-term economic shock is unavoidable, but looking a bit further ahead we can be hopeful of being able to control the situation that is evolving right now. Panic selling will soon lead to a market oversell, so with justified caution it is worth considering step-by-step investments and increasing equity exposure if you are taking a long-term approach.