LIFE Insurance for IDIOTS

[looking for LIFE insurance]

I recently posted looking for input regarding LIFE insurance.

Yesterday I went to Prudential Insurance on Sathorn, 24th floor and met with a woman named Chan.  I told her 5 days prior to the meeting that I was wanting to purchase 15 year term life insurance with a 35 million baht benefit to my beneficiaries.  So far so good...

At the meeting she presented me with a print out stating that my premium was 1,868,650 BHT per year for 20 years . This would be 37,373,000 at the end of 20 years. 

After I explained to her this was not LIFE insurance, this was - 6% (Negative 6%) loan to Prudential and I asked her if anyone is really stupid enough to loan her company the funds to pay their family upon death, I received that "look" .  You know the LOOK after spending some time in this lovely country.

 

OK, now colleague comes to the rescue!  He was able to offer my a 'policy' for 3M BHT per year for ten years of paying the premium.  After I stopped laughing, I thanked them and realized something I knew many years ago.  NO ONE in this country will ever see you as anything other than an ATM.

 

At the bottom of the spread sheet its states one of the exclusions is that " suicide within 1 year or being murdered by the beneficiary" they will keep your funds.

 

Happy ending, going to U.S for a medical exam and $1,000,000 benefit for 15 year term is $3500 per year.

 

This is the same bulls**t policy they are pushing at the banks due to the high commissions .

[Pilotman]

well so long as any potential buyer is not congenitally stupid and can actually count, they will never sell one policy. 

[Sanjay Jaybhay]

Can you post here where we can get that policy in the US for Usd 3500. I would be interested also. Thailand insurance is a rip off and I am tired of getting ripped off.

[Sheryl]

Moved to the insurance forum as thsi does nto concern health per se

[HampiK]

What I see is, somehow a saving plan, and the negative interest is, because they have to think you could die before the 20 years and this risk they have to deduct some money.

 

I think with the 3'500 US$ you will become anything back at the end of the lifetime if you still alive?

[manarak]

some years ago I asked around in Switzerland (!) about a life insurance, but all these companies sell savings plans, not life insurances.

[CHdiver]

17 hours ago, manarak said:

some years ago I asked around in Switzerland (!) about a life insurance, but all these companies sell savings plans, not life insurances.

Do it again and ask for a "Todesfallrisko Versicherung". That one has no saving part and is readily available. 

[13morris]

yeah better outside thai life insurance.

[John Sutherland]

It looks to me more like you want an assurance policy not insurance. You get nothing back from insurance policies in general unless something happens. Assurance will pay at the end if you are still alive. I have one running the payout will cover my son's uni fees. (UK prices budgeted for)

[coops]

14 hours ago, John Sutherland said:

It looks to me more like you want an assurance policy not insurance. You get nothing back from insurance policies in general unless something happens. Assurance will pay at the end if you are still alive. I have one running the payout will cover my son's uni fees. (UK prices budgeted for)

 

 

As above - of course, 'assurance' and 'insurance' might not always be clearly defined...even in English never mind in translation.

 

To put it another way...

It's a CULTURAL difference and misunderstanding.

 

My wife has some Thai 'Life Insurance' and it baffled me when she said how it 'pays out' also (after some years when still alive)... as opposed to MY understanding and expectation of 'Life Insurance' - where there's only a payout to your beneficiaries on your death.

 

So the OP here, when he asks for 'Life Insurance' is expecting my type of product... which has NO investment side to it for my possible benefit, but is purely a payout on death. And so... on hearing that the total term premiums amount to more than the death payout, he is naturally bamboozled... and then goes in to knee jerk "I'm just a Farang ATM then am i?" mode.

 

Thai Life insurance has an investment component to it, which, as you say, pays out also at end of term if you are still alive... so really, not the same thing at all.

 

Go to Prudential's Thai site and you'll find

"Investment Plan

A new alternative way to make an investment for an opportunity to get higher returns; a combination of protection and investment opportunities under one life insurance policy."

 

And i'd wager that's the 'usual' Thai 'Life Insurance' product - one that combines investment and death protection.