In Polish: Ubezpieczenie na życie do kredytu
This is the word you will see in bank documents.
Definition
Mortgage life insurance is a policy that repays the loan or part of it if the borrower dies, and in broader versions also in case of permanent inability to work. It is usually not a condition of the loan, but many banks offer a lower margin for it. Polish law lets you buy the policy from any insurer, as long as it meets the bank's requirements.
What it means for you
The policy protects your family: without it, the debt passes to the co-borrower or into the estate together with the flat. It usually costs a percentage of the balance or of the instalment each month, so on a large loan it can be several hundred złoty a month at the start. It is worth it as a way to a cheaper loan only if the premium is lower than the reduction in the instalment.
Full entry in Polish, with a worked example and sources
Frequently asked questions
Is life insurance compulsory with a mortgage in Poland?
Usually not. Most banks give a lower margin for it, but the loan is also available without the policy, just more expensive.
Can I buy life insurance outside the bank?
Yes. The bank must accept a policy from another insurer if it has the required scope. However, the margin reduction may apply only to the bank's own policy.
What happens to the loan if an insured borrower dies?
If the policy is assigned to the bank, the benefit goes to the bank to repay the loan up to the sum insured. The insurer may refuse to pay in cases excluded by the general terms.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Loan costs and insurance”