As Poland has become a EU member and the quality of life has gone up, more and more people are considering buying life insurance, or as they call them - ubezpieczenie na zycie. But Poland insurance has greatly developed lately, so people often do not feel at ease when making a choice. When they go to a Poland insurance company, many polish people cannot get over the feeling that the agents are trying to sell them what is best for their wallet, and not for the people's specific needs. Here are a few facts about the different type of life insurance that exist in Poland: there are three major types of ubezpieczenie na zycie: the term policies, the whole life policies and the universal life ones. Term policies cover you for a certain term of years, with the most common being 1, 5, 10, 15, 20, 25, and 30. They are the most cost effective form of life insurance (or to put it bluntly the cheapest). They build no cash value so the money you spend on it is just gone unless you die. To put it straight, this is a flat out bet between you and the insurance company about whether or not you'll die in a certain period of time. While some agents do not like advertising this type of insurance, many think this is the best kind of ubezpieczenie na zycie. Term policies are often preferred because they are a straight bet. They are also called pure insurance" and they represent the best deal for most people, depending of course on each individual's specific needs. Whole life policies cover you for your entire life; when compared to the term policies, you may easily notice that the rate is much higher, but they do build a really small amount of cash value that you can cash out or take loans against. These costs vary anywhere from 50 to 150% more than term policies and are a poor investment choice. Whole life policies are usually the most expensive ones due to the savings built to them. The problem with whole life policies is that insurance is a rotten investment you can do better just about anywhere else. Universal life insurance (or sometimes called variable life insurance) are policies which take your premiums and invests part of them to pay your premiums. These are hybrid plans that are not quite term and not quite whole. They can go drastically down in value on your death benefit, so you can completely lose your coverage if you are not paying enough premiums. But have in mind that although they intend to give you slightly better investment returns, it is nothing like you could do on your own in an index fund. Again, while some Poland insurance companies say these are the best life insurances, others advice customers to stay away from them. As a general rule, when dealing with Poland insurance companies, and especially with life insurance - ubezpieczenie na zycie treat it like buying a car. Before you go, decide what features you want, and what you want it to do for you. Write them down, and then match the product to the goal, not the other way around. As well as that, try talking to a reliable insurance agent the best would be to find a recently retired one, or one who doesn't work as an agent anymore. This way you can find useful information that you would not normally find from an agent. For instance, one agent recommends nothing except term insurance, and admits that agents make up to 95% commission the first year on whole life insurance; they call whole life investment" and savings" in order to determine people to buy it.
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