Ing Thailand - Insurance & Pension Policy

[NotaNutter]

I've been thinking about future retirement and noticed an insurance with pension policy on the ING Thailand website (terms copied at the bottom of this post).

Is this too good to be true? It says you pay 1% of the sum insured per year, for 20 years. Then you get a lump sum of 30% of the sum insured + a pension of 1% of the sum insured per month. I've copied the terms below. Am I reading this correctly? For example, if the sum insured is 10M baht then;

You pay 1% of 10M per YEAR as a premium - 100,000 x 20 years = 2,000,000

After 20 years you get 30% as a lump sum, and you get a MONTHLY pension of 100,000 until you die. I realise inflation will reduce the value of 100,000 in 20 years, but it still seems a good deal to me. Anybody know if this is a good deal or not? I'd post the link but I know URL's are not allowed on this site, here's the main points.

From ING Thailand website, under products. . .

Income protection for retirement and early loss of life

- Annual cash payment of 1% sum assured from the end of year 1 until year 20

- Non Guaranteed Maturity Bonus at the end of year 20 (approximated 30% of sum assured)

- Monthly pension benefit 1% sum assured,commencing from the end of the month following the anniversany year 20th, but if loss of life occurs ,

company guarantees to pay for 120 months to the beneficiary

- In case of death before the end of year 20 , beneficiary receives either face amount or cash value , with greater

Edited May 2, 2005 by NotaNutter

[Khun Bob]

Seems all most too good to be true - going for 10M Bt giving you a pension of 100K bt per month after year 20.

Do you have to be resident in Thailand to apply for this ?

I wonder how this compares to products in other countries - ie UK ?

[Khun Bob]

Try the online caculator on the ing site - you get it first when you do an inquiry. I think a mistake may have been made - might be wrong (hope I am ) as it doesnt quite add up...

[NotaNutter]

I've not seen this type of policy anywhere else (eg. UK).

[Khun Bob]

In the online calc - try putting in a premium per year of 100K (1% of 10MBt) and you get a slightly different (more beleiveable) story...

Unformatted results below...

Please Select productInsurance for lifetime pension with par

Product Covered

(Year) Payment

(Year) Sum Assured Premium Total Premium Benefit

Lifetime Pension (Par) 20 20 1,390,000 98,690 1,973,800 Benefit

[Khun Bob]

Just a gut feeling but I think the annual premium is 10% of sum insured not 1% - then again the mortgage calc could be wrong (really hope it is!) - going to ask ing about this...

[NotaNutter]

I suspected the same thing Bob.

[Khun Bob]

Sent off my query to ING - funny thing is when you do a calc and you click on details the "Right" (desirable) results come up...

Shall wait and see what happens..

[Khun Bob]

Got some replies :

We are glad and thank you for interesting in our products and services from

us. (ING Life Limited) We are welcome to serve you in the best way. We also

provide the example of Lifetime Pension Extra (Par) - LX20 for you per

your requested via web. I attached 2 pages for you to see the benefit for

you and assured per year (depend on age, sex and career).

1) First page is Premium of LX20

2) Benefit of LX20

This plan; the annual premium is ~ 10 % of the sum insured. As we

callculated exactly amount, if you wished to insure 1 M Bt, the annual

premium for 20 years is Bt106,000.

So premium is 10% - and it gets worse....

About this policy. We have underwriting rules for foreigner who lives in

Thailand :

1. The foreigner has been continuously living and working in

Thailand for more than 6 months. (before apply the policy).

2. Need to have Medical examination ( our company form ) and HIV

done in our contact medical center hospital.

3. Need to send Work Permit in Thailand document and all of pages

of visa and passport.

4. If the foreigner do not has work permit in Thailand , we allow to

apply only life assurance plan which has 5 - 10 years

payment ( except Term plan ) and PPO not exceed @ 2,000 Bath.

4.1 If the foreigner has work permit in Thailand, maximum sum

assured is Bt 1 million.

Do you have work permit in Thailand and your arrival date into Thailand

since Dec2, 2004? If yes, you can apply this policy.

If not, you can apply this policy since you have settled in Thailand more

than 6 months.

Hmm not so good after all...

Wonder if there are any similar UK insurance products ??

[NotaNutter]

Thanks Bob, well it seems that their website is wrong. I thought it was too good to be true. Quite a big difference between 1% and 10% annual premium.