Find out what to consider when choosing life insurance.
What types of life insurance are available?
Life insurance is one of the basic products offered by insurance companies. Insurers’ offerings include options designed for children (endowment insurance and accident insurance), adults (individual life insurance), family members (family insurance) and retirees (whole-life insurance).
Some insurance companies also offer investment-linked life insurance policies. In this case, the premium is divided into two parts. One is allocated to protecting the insured’s interests, while the other is invested. In addition to the obvious benefits of insurance protection, this also provides an opportunity to grow capital.
What life insurance sum should you choose?
The sum insured under a life insurance policy determines the maximum compensation that a close relative or beneficiary will receive after the insured’s death. Depending on the offer, it may range from several thousand to even several hundred thousand zlotys. Its amount is directly related to the contract duration, the insured’s health and age, and the premium amount. Compensation for health impairment is also calculated on the basis of the sum insured.
When choosing an offer, the sum insured should be adjusted to the family’s financial needs. The money from the policy is intended to ensure financial liquidity in the event of the insured’s death. However, remember that the policy value should not be too high, as this will significantly increase the monthly premium, which in turn may make it difficult to meet payment obligations to the insurer.
What health and life insurance extensions are available?
A standard life insurance policy provides financial support to the insured’s family in the event of their death. Coverage can be personalised by extending the basic package with insurance against:
- hospitalisation;
- the need to undergo surgery;
- serious illness;
- a cancer diagnosis;
- the occurrence of a temporary health impairment;
- the death of a family member;
- the birth of a child.
What exclusions of liability apply to life insurance policies?
Insurance companies providing life insurance must ensure that their business remains profitable. To reduce the risk of fraudulent compensation claims, they include so-called liability exclusions in their contracts. These specify situations in which they have the right to refuse to pay a benefit to the insured. The detailed descriptions of exclusions vary depending on the company’s policy, but their general meaning remains the same. Liability exclusions most often apply to events resulting from:
- self-harm;
- riots and strikes;
- acts of war;
- committing an offence or crime;
- intentional actions;
- an accident while under the influence of alcohol.
Before concluding the contract, read the general terms and conditions of insurance carefully. This will allow you to familiarise yourself with the exact description of situations in which the insurance company may reduce the compensation or refuse to pay the benefit.
How long is life insurance valid?
The duration of an insurance contract depends on the type of life insurance policy. As a rule, insurance is purchased for at least 12 months. Shortly before coverage ends, most insurers send the insured a new offer with the option of extending the policy. Some companies also offer options valid for a longer period, such as five years. In addition, some insurance companies provide coverage indefinitely. This option is particularly suitable for older people who cannot take out typical life insurance policies because of their age.
What Should You Consider When Choosing Life Insurance? — Summary
There is no universal formula for the perfect life insurance policy. When choosing insurance for yourself and your family, you need to consider a number of different factors. The scope of coverage, sum insured and contract duration should influence your decision. When searching for offers, it is also worth considering whether the selected package will provide the necessary financial support in the event of the insured’s death or significant health impairment. The premium should also be adjusted to your financial capabilities so as not to strain the household budget. You can find the best life insurance policies on https://www.rankingubezpieczennazycie.pl/. With the help of an intuitive insurance calculator, you will gain access to a comprehensive comparison of offers from the most popular insurers.