Pension insurance on the saving principle has been established long ago in developed states of Europe and of late it has also been present in Montenegro, and it is done by Grawe insurance from Austria. The sales agent of the company, Milusa Ljiljanic, said for Montena-business that this model of insurance in the region states encouraged the reform of the pension fund. In these states, working period and age limit of employees has been prolonged for five years. “Unfavourable ratio of the number of employed and number of pensioners would force Montenegro to reform the pension system and to prolong the working period,” states Ljiljanic. She also said that the company was present in Montenegro through several legal representatives which are related to Safe-invest, representative of Grawe insurance for Bosnia and Herzegovina. Payments are made through Reiffiesen bank in Federation, because of the complicated financial transactions with Serbia and they also plan the foundation of the representative office in Montenegro. “Majority of our clients are people with lower income and entrepreneurs who pay minimal wages for pension insurance to the Fund of pension and invalid insurance (PIO). Grawe insurance is interesting to them because of the possibility of inheritance, since the premium and profit on invested means, which depends on the amount of the premium and period of insurance, is automatically transferred to the heirs after the death of the client,” said Ljiljanic. Citizens of age from 15 to 60 years can sign the contract without medical examination while those aged 60 – 65 need it. The period for signing the contract is 10 to 24 years. Annual premium of insurance is from 500 to 3,000 DEM and amounts exceeding 600 DEM can be paid in two parts a year. The payments are done due to the expiring of the insurance of natural death, when the client receives the insured sum with the profit realized, When death is caused by accident, the client receives the doubled sum with the profit realized. Insurance premium must be paid for a year in which the death of the client occurred. Grawe insurance offers preferentials when the insurance expires, because on termination of the contract (when client lives to use the insurance) the insured sum and profit can be collected or the acquired capital could be transformed into monthly payments. When the client decides to transform it into monthly payments, he can take the life payment, which is not heritable or for certain period of time, which is transferred on heirs in case of death of the client. Ljiljanic adds that beside life insurance, the insurance from accidents that can cause permanent invalidity can be contracted. “It is so called ‘overall’ insurance and the invested amount is not returned. Annual payment is 160 DEM and there are two variants with the basis of 25,000 or 50,000 DEM that is multiplied with the percentage of invalidity. The first variant includes the hospital daily payment of 15 DEM,” explaines Ljiljanic.