Insurance Investment

[sinbin]

Currently 'Thai Insurance Company' are doing a savings scheme that goes something like this:- For 6 years you pay them 100.000 Baht every year. They give you 14,000 Baht every year as a reward. You make no payments after 6 years, but must leave the money with them for another 9 years. Again they will pay you 14,000 Baht every year for those 9 years. If you don't take that 14,000 Baht every year, and leave it, they will give you an extra payment after the 15 year term. I haven't managed to find out what that extra payment is yet.

Is there anyone out there that has took out a similar contract ? Fingers crossed there's someone out there that can say if it's a worthwhile investment, or not .

Edited October 12, 2010 by sinbin

[ericthai]

I would be careful in Thailand with insurance companies. My GF had problems when her mom died, they did not want to pay. Made excuse after excuse. She finally got back some if her money, nothing close to what she was suppose to get. She called the Insurance regulatory and they did nothing.

I would be careful...

Eric

[Naam]

"Fingers crossed there's someone out there that can say if it's a worthwhile investment, or not ."

what happens after 9 years? do you get the paid up 600k ? even if you get your capital back the investment is

your yield:

year

1 = 14.00%

2 = 7.00%

3 = 4.67%

4 = 3.50%

5 = 2.80%

year 6 to year 15 = 2.33%

summary: the investment is worthwhile and highly profitable... not for you but for the "insurance company".

:jap:

Edited October 13, 2010 by Naam

[bkkexplorer]

I think we need more details, given this is an insurance investment, what coverage comes with it? Is it purely an investment scheme?

[Naam]

most insurance companies offer a whole range of investment schemes without the combination of an actual insurance cover. the info the OP provided indicates that it is a investment only.

[SiamRose]

For 6 years you pay them 100.000 Baht every year. They give you 14,000 Baht every year as a reward

Why not just pay them 86,000 per year?

[samran]

these 'investments' offered by insurance companies are generally a massive con.

As Naam has pointed out to you, the interest payments are up front and the rest paltry. In real terms, after inflation, the payments towards the end of the 15 years mean that you are actually losing.

They rely on the fact that many people don't keep up payments - and then take our a 'penalty' for not doing so.

You should never invest in something like this where you can't access the principal at short notice, if not instantly.

Basically, people who invest in these things are suckers, up country bumpkins who aren't terribly financially literate.

If insurance is what you are after, buy a health insurance policy from the likes of BUPA or Thai health, which will cover you if you get sick.

To make investments, invest in the stock market, or long term funds which can be purchased at most Thai banks.

If you aren't confident about doing that, the open up a high interest bank account in your home country.

Edited October 13, 2010 by samran

[Time Traveller]

The best advice is don't listen to the advice on this web forum

Since it's not clear what you are talking about, what you should do is add up how much you pay into it over the 15yr period, then add up how much is returned to you. Then you can calculate the return on your investment. Commonly, these investment strategies are just generally investing in bonds, with the investment fund taking a percentage. Likely such returns don't even keep up with inflation and many like previous posters said are lousy investments, considering your money is locked away for so long. But if what you are buying is life insurance and if you need life insurance then it might be worthwhile. However, you need to find out some more information, like is it insurance you are buying, or just an investment product, or insurance with an investment attached.