6000baht A Year Policy? What Is It?

[macleod101]

apparently it gives them money back when their 60 and over, also they get money back if they die...

any ideas as to what it is?

[engrin]

life insurance!

[Farma]

If it’s what I think it is, it’s a form of life insurance. You may find that one of the family members may be claiming the contributions back on tax as well.

[astromash]

life insurance!

My girlfriend tells me her father pays a few hundred baht every month into something similar. She stands to make about 100,000 if he dies.

[Maigo6]

My GF pays 20,000 baht per year, that covers medical Insurance and a lump sum after 20 years, plus a payment on her death.

[samran]

probably an exceedingly poor value life insurance policy, offering no more than 1% to 2% PA over the course of the policy, where if you die, you get a minisule pay out.

Having said that, it is a tax deductable, so it may be worth it in some limited circumstances.

[macleod101]

well they don't need any tax deductions, so i think this is a waste of money...

they've been paying into it for over 20yrs

cheers

[misterme]

But as Thais are not known for their high savings, this is a good option in many cases.

[macleod101]

and if you had no saving at all, would it be worth doing?

Im paying them 10,000baht a month to eat etc, and then they spend it on this! ggrrr

[misterme]

If they're using money that you gave, it may work out in the end.

How many more years do they pay until they get their annuity? Once the insurance kicks in, they've got monthly income for quite a while, as I understand it.

Some may say it's better than blowing it on smokes, phone cards, and booze. How many of those threads to we read. And how many of those OPs would prefer their inlaws doing what yours are.

just an opinion. I'm not saying I'm right.

[Farma]

I’ve known quite a few village families who have taken out these policies mainly to cover the cost of funerals.

I’ve seen some policies sold to people I considered to be in their senior years. I couldn’t see how the insurance company was going to make any money out of the deal.

One family I know collected in under 2 years when the father passed away from a combination of old age and cancer.

The policies are for low amounts when compared to western standards but they do save some families having to go into debt when the father or mother passes.

[KhaoNiaw]

I've known quite a few village families who have taken out these policies mainly to cover the cost of funerals.

We had one of these on father-in-law which covered the funeral expenses plus some left over to help out mother-in-law. We paid about 1500 baht /year. Although obviously a form of life insurance, it wasn't called ประกันชีวิต, though I can't remember how they did refer to it.

[PadThaiGuy]

I know many Thais paying for life insurance. Secretaries, hotel staff, store clerks....These people are earning under 10,000 a month and are sold this policy by slick salespeople.

I crunched the numbers once and it looked to be a bad deal.

[torrenova]

You'd be amazed at the westerners in the villagers being sold very expensive and poor value health and life assurance policies by other westerners !

My girl's mother's husband bought one. About 60k per annum but you get some back and 300k if you die. he actually neeeded some hospital treatment but does not need the life assurance part. I reckon the commission is between 35 and 50% so very good for the person selling.

The ones sold to thais are also usually very poor value.

[tingtong]

I know many Thais paying for life insurance. Secretaries, hotel staff, store clerks....These people are earning under 10,000 a month and are sold this policy by slick salespeople.

I crunched the numbers once and it looked to be a bad deal.

Exactly my thinking. The numbers not really adding up to call it a good deal.

SCB sold one to my wife, some 15 years paying,minuscule pay for death with 4% interest/year...made her believe it is an "investment".

well, I thought different...took a whole month to cancel it, and get back the money...and wasnt easy

[torrenova]

I went to my main bankers SCB after my daughter was born. I enquired about savings products and they had some crap, some real crap which would have baffled many a westerner, nevermind a potentially less educated and more reverand Thai.

They basically tried to point out the "big" sum of money which would be available after XYZ years without themselves even knowing the IRR and the terminal bonus. The interest rate was so poor that you could get more in a normal fixed term account.

Another policy was insuring someone - why Thais think that you have to combine insurance with savings I will never know. Why their staff never know anything is embarassing.

Can I open a normal account in her name ? no. So I open on in my name and designate it her account.

If I find something suitable I may use it - heck, I may start a thread.

[Joe Walshe]

My wife was determined to get one of these life policies about ten years ago. I explained to her after glancing at the document that with inflation the lump sum would appear pretty small when policy cashed in. She was determined to go ahead, claiming it was worth it if one of us dies. Subsequently we have had a policy for each of our two kids, my mother in law and myself. After ten years she can now see that it was not a good idea. Still I decided it was wiser to acquiesce at the time.

Many villagers seem to supplement their income selling Insurance/assurance policies.