Life insurance and endowment

Life and endowment insurance are designed primarily to protect the client's family. By signing a contract you are sure that in case of your death, the family receives a benefit, allowing them to live with dignity. This insurance is also often added to mortgages. Here, in turn, you have a guarantee that in case of your death, the family will have funds to pay the mortgage. Currently, protection policies are often also savings products. If nothing bad happens to you, you can i.e. at the age of 65 get back the money you systematically set aside for your whole life.

  • Classic life policy has primarily a protective function. Thanks to this in case of your death, your loved ones will not remain destitute
  • Insurance may also include savings function. If nothing bad happens to you, money you spent on policy can be put aside for retirement

Life and endowment insurance is provided by almost any insurance company. Before you choose a product, check whether you care more for the protection or for the saving. You also need to decide on the duration of the contract and its maximum payment. The longer the period lasts - the longer you are protected and the longer your savings work. You also have a choice of several ways to pay premiums. You can do this on a regular basis (e.g. monthly) or pay the entire premium once.

 

  • Life and endowment insurance are fairly common products so you can find them in any company
  • Each classic policy due to its definition should be purchased as a long term product 
  • You have full discretion with regard to the form of premiums. 

If you decided on regular premiums, which means paying premiums every month or every quarter, remember you must pay these premiums to the insurer on time. Anyone who opted for life insurance policies must remember that it is by its definition a long-term product. To make your savings work properly, the contract should last for at least several years. Do not break a contract after 2-3 years because it simply does not pay. Of course, the duration of the contract does not affect the compensation for your family in case of our death. Family will receive compensation, regardless of at what point of the contract the accident happens.

How to save for retirement?

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Every one has been setting the money aside for the retirement since the beginning of our careers. Each month, part of our earnings is paid to insurance company for our future retirement. ZUS – Social Insurance (the so-called second pillar) in Poland is compulsory. Any person, who starts a career, must belong to an Open Pension Fund (OFE).

What does the second pillar mean?

iifilarOFE - Open Pension Fund (the so-called second pillar) in Poland is compulsory. Such insurance, or in other words, participation in the OFE, provides us with additional funds for retirement. With the money accumulated in the fund, at the time of our retirement, benefits will not be received from one, but from two sources. The first is Social Insurance (ZUS- the first pillar), while the second is OFE.

How do I care about my child’s future?

dziecko
The task of dowry insurance is to ensure your child a calm start in adult life. Dowry Insurance is signed when your child is still small. Payout occurs when we choose - usually when the child reaches the age of majority, the initiation or completion of studies. Let us remember one thing – deposited capital is being accumulated during these years. 

 

In case of death or permanent disability of the insured, the family must immediately notify the insurer. The insurance company pays the compensation promptly. In case of death - the full sum assured. In case of disability - the amount depends on the degree of disability. If insurance is associated with a mortgage, the money may also be automatically transferred to the repayment installments.

In case where the contract is endowment insurance i.e. the insured time is over, we are entitled to payout of funds from our policy. We get our premiums plus interest, because our funds were invested at all times.

 

Notifying the insurer

If the accident happens, the person designated in the contract should notify the insurer. If the contract period is over, we notify the insurer by ourselves.

Payout of our assets into an account

The insurer after receiving the notice and all requested documents, transfers the money to the designated account in the contract.

 

Our capital

If the payment was associated with endowment insurance, we can use the money as additional retirement.