Life Assurance

[loong]

Now, I could be wrong but I don't think so.

Unfortunately a neighbour has just died, he has been ill for quite some time.

My girlfriend tells me that the family will get a 500,000 Baht payout from the insurance.

Apparently they took out the insurance about a year ago, after they knew he was sick.

I haven't said anything to the family, but I said to my gf that I think it highly unlikely that the insurance company will pay out. She insists that they will because they advertise on TV that they insure with no health check etc.

I pointed out that for sure, there would be questions on the application form regarding existing illnesses and that if somebody has something like cancer and doesn't disclose it, the company will refuse to pay.

She just thinks that I'm being stupid and of course they will pay.

I feel certain that when the insurance company receives a claim for a half million Baht after having only had about 6,000 Baht in premiums, that they will be doing some serious checking up.

Surely they will check with the doctors and look for any reason to avoid paying?

In this case I'm pretty sure that they wouldn't have to investigate too much to find a valid reason for not paying, and I would have to say that they'd be within their rights.

I can just imagine the shock if the family borrow money to pay for the funeral and spend more than they usually would, only to find that no money will come from the insurance company.

So, am I right or not?

[ThaivisaInsurance]

Now, I could be wrong but I don't think so.

Unfortunately a neighbour has just died, he has been ill for quite some time.

My girlfriend tells me that the family will get a 500,000 Baht payout from the insurance.

Apparently they took out the insurance about a year ago, after they knew he was sick.

I haven't said anything to the family, but I said to my gf that I think it highly unlikely that the insurance company will pay out. She insists that they will because they advertise on TV that they insure with no health check etc.

I pointed out that for sure, there would be questions on the application form regarding existing illnesses and that if somebody has something like cancer and doesn't disclose it, the company will refuse to pay.

She just thinks that I'm being stupid and of course they will pay.

I feel certain that when the insurance company receives a claim for a half million Baht after having only had about 6,000 Baht in premiums, that they will be doing some serious checking up.

Surely they will check with the doctors and look for any reason to avoid paying?

In this case I'm pretty sure that they wouldn't have to investigate too much to find a valid reason for not paying, and I would have to say that they'd be within their rights.

I can just imagine the shock if the family borrow money to pay for the funeral and spend more than they usually would, only to find that no money will come from the insurance company.

So, am I right or not?

On the face of it - not knowing all the facts - you may well be right. However, may we suggest you stay out of this just in case they are refused payment and you get blamed in some way ?

[loong]

Don't worry, I will not mention my concerns to the family - I know how easily things can get turned around in Thailand.

Somehow it could easily be perceived as my fault if payment is refused.

[loong]

But surely it is normal for Insurance companies to check for undeclared illnesses when they receive a claim, especially when premiums have only been paid for a year?

[jazzbo]

Based solely on what you say, K. Loong, there very well could be a Thai life insurance company that issues life insurance policies with no medical questionnaire and no medical exam. I would say the payout amount itself is suspect (based on a cursory look at some Thailand Life insurers). So, while the family might be paid SOMETHING following the death of their loved one, their visions of hitting the lottery might be in question.

[TerryLH]

"However, may we suggest you stay out of this just in case they are refused payment and you get blamed in some way?"

Excellent advice!

"Stay out of it." Advice that could be given to a lot of the posters on this forum.

[jazzbo]

By my read of all of the above, TLH, it doesn't seem like anybody, including the OP, is in it. It never ceases to amaze me how insurance is so misunderstood, in this case by Thai or in others by farang, whether in Thailand or their home country... so your 50 satang is most appreciated.

[jazzbo]

I will offer this informed but highly non-professional opinion: Is it possible that there is a Thailand-based life Insurance company whose actuarial staff has configured a policy that will offer a non-underwritten (i.e. no medical-history questions asked) non-medical check-up required (by a doctor or registered nurse employed by the Company) life insurance policy product such that should the average country bumpkin (as opposed to a 'key executive' a la Bill Heinecke) die within the first year of the policy the beneficiaries of such policy can expect a 100 to 1 return on the premium paid-in to date following the insured's demise? Answer: Somewhere between highly improbable and impossible.

[rgs2001uk]

As mentioned by previous poster, highly unlikely.

Please provide the name of the insurance company offering such value for money in these recessionary times, sure would like to give them my business.

I have never heard of any such service on offer in Thailand offering such a generous payout.

6000 baht with a payout of 500,000, suspect the old concept of face is coming into it, hope the new Izuzu D-Max hasnt yet been ordered, better scale down the send off for the departed, why do I get the feeling the only one to make out of this will be the local loan shark.

[pakorn8000]

I believe people really misunderstand Insurance. Any policy would come out with at least questionaire to ask if you have problems with your health or any previous record about it. This is to save the cost of verifying a client health. But the law stated clearly that it is fraudal to surrender wrong information, and the policy is void.

To rgs2001uk, for 6000 and you get 500,000 coverage is pretty normal. You can find it any where (unless you are very old or ill that you need to pay extra).

[torrenova]

I can see some Thais think that they were being very clever and "ahead of the game" in this instance. They know someone is going to die and then buy insurance, hoping to collect, without any understanding that insurance companies need to collect in more premiums than they pay out in claims.

A little knowledge is dangerous.

[pakorn8000]

A little knowledge is dangerous.

May I dare say 'It is not knowing or not knowing that hurts you, but knowing wrongly really hurts you'

[jazzbo]

Nope. It works even the insured does a fraud, too. but knowing wrongly really hurts you'