Life Insurance

[unclegrenv]

Good afternoon

I have been looking into life insurance to care for my Thai wife and son when I eventually curl up my toes and I am finding it difficult. I asked for a quote for 300,000 British pounds over 20 years and the cheapest has been 3,500 pounds a year which sounds expensive.  I'm a relatively healthy 55 year old who doesn't smoke but drinks socially. They say it would be cheaper if I owned property or a business in the UK, which I don't. Anyone have any ideas, links or tips that can help.

Much appreciated
Cheers

[Nero Dog]

Don't bother. 

Just put money every month into a bank account. 

Gold is too pricy at the moment. 

Buy property. 

I wouldn't trust a Thai insurance policy for 1 second

[unclegrenv]

Hi Nero

 

That had crossed my mind. Will they pay? I need to do more research first. Thanks for replying. 

[rak sa_ngop]

Normal commission rates to brokers for health insurance are 15 to 18 pc of premiums. Plus add the company running costs and investor profits. So only a small percentage of premium money goes to hospitals for medical procedures.

 

Now I don't know about life insurance companies, but if there is a similar amount of charging do not expect to see the whole of your 3500 pounds a year wisely invested.

 

But if you put 291 pounds  month into a bank or other investments for 20 years, you will need an annual investment growth rate of 12 pc a year to reach a total value of 290,762 pounds (69,840 deposit plus 220,921 growth return).

 

So putting money into a bank with low interest rates is a mistake. But SOME investments might bring in the return you need.

 

Use the Compound Interest Calculator on this site to check out my figures.

 

https://www.thecalculatorsite.com

 

On the face of it 3500 pounds a year Life Insurance for 20 years doesn't look too bad. But what's the catch?

 

Tread carefully.

[Hi Tea]

3 hours ago, unclegrenv said:

That had crossed my mind. Will they pay? I need to do more research first. Thanks for replying. 

"I wouldn't trust a Thai insurance policy for 1 second" - Nero Dog

Why on earth would you think that an established Thai insurance company would not pay a valid death benefit claim?  Just because Nero Dog said so and because it's a Thai company?

 

"...a quote for 300,000 British pounds over 20 years and the cheapest has been 3,500 pounds..."

How come a Thai insurer is quoting benefits and premiums in GBPs?

[Hi Tea]

24 minutes ago, rak sa_ngop said:

Now I don't know about life insurance companies, but if there is a similar amount of charging do not expect to see the whole of your 3500 pounds a year wisely invested.

 

But if you put 291 pounds  month into a bank or other investments for 20 years, you will need an annual investment growth rate of 12 pc a year to reach a total value of 290,762 pounds (69,840 deposit plus 220,921 growth return).

 

On the face of it 3500 pounds a year Life Insurance for 20 years doesn't look too bad. But what's the catch?

 

Tread carefully.

"...do not expect to see the whole of your 3500 pounds a year wisely invested".

That is irrelevant.  He wants life insurance, not life assurance; there is no investment element in a life insurance policy that will affect the value of the pay out to the beneficiary.  The benefit is set at the start of the policy.

 

On the face of it 3500 pounds a year Life Insurance for 20 years doesn't look too bad. But what's the catch?

What "catch" are you warning him to beware of?  For life insurance an established insurer providing a specified benefit for a fixed premium is all that the OP needs to consider.

[Hi Tea]

25 minutes ago, rak sa_ngop said:

Now I don't know about life insurance companies ... Tread carefully.

OP, tread carefully when taking financial advice from anyone who does not know what they are talking about.

[rak sa_ngop]

The probable catch is that if you outlive the policy  you will lose the whole amount.

[simon43]

2 minutes ago, rak sa_ngop said:

The probable catch is that if you outlive the policy  you will lose the whole amount.

Yep - I'm still waiting for my house to burn down so I can claim on my fire insurance policy... ????

[wolf81]

On 9/18/2020 at 1:51 PM, rak sa_ngop said:

The probable catch is that if you outlive the policy  you will lose the whole amount.

Should not be true with ThaiLife (ThaiPrakan) insurance. My girlfriend pays such an insurance for her mother and she told me she gets money either if her mother dies or after a set amount of years.

 

When using Google Translate for the ThaiLife website I see the following: https://translate.googleusercontent.com/translate_c?depth=1&pto=aue&rurl=translate.google.com&sl=auto&sp=nmt4&tl=en&u=https://product.thailife.com/%E0%B9%81%E0%B8%9A%E0%B8%9A%E0%B8%9B%E0%B8%A3%E0%B8%B0%E0%B8%81%E0%B8%B1%E0%B8%99%E0%B8%97%E0%B8%B5%E0%B9%88%E0%B9%80%E0%B8%AB%E0%B8%A1%E0%B8%B2%E0%B8%B0%E0%B8%81%E0%B8%B1%E0%B8%9A%E0%B8%8A%E0%B9%88%E0%B8%A7%E0%B8%87%E0%B8%AD%E0%B8%B2%E0%B8%A2%E0%B8%B8%3Flifestage%3D60%2B&usg=ALkJrhjUsCTYEEiRBpk_dHJLWYLkHTd2aQ
 

Quote

Sap mascot 90/15
- Covered until age 90
- Death to receive 100% of the sum assured
- At the end of the contract, receive a lump sum of 150% of the sum assured

 

I did always feel that it might be better to just invest the money, might get higher returns using index funds (I figure this is what insurance companies do anyways ... invest your money). Perhaps if one is of old age, investing in index funds might seem less attractive. In such cases a life insurance policy might give better guarantees of the returns.