Is Thai Life Insurance An Affordable Option?

[up2you2]

You are probably thinking that you would have as much use for life insurance in Thailand as a fish needs a bicycle. Simple because if you or your lady died tomorrow, your children could take up their option of the Thai family insurance, and return back to Nakon Ratchanowhere.

But in the event you would like to provide something more, and haven't already made it, is life insurance an option? The premium rates in the UK are really cheap in comparison, but you have to be resident to take out a policy.

Well here are some figures, annual percentage premium rates of the sum insured, I have come up with out of interest, for a 42 year old female, term NOT whole life insurance for a period of up to 20 years, for a sum of 10 million Baht:

United Kingdom .098%

Bangkok Life .4221%

ING 10m 15 years .48%

Ayuda Allianz .498% + solely accidental cover .15%

Muang Thai .524%

CSC - Bangkok Life Insurance .55%

Ace Life .63%

AIA .667%

Insurance Thais 5m 20years .685%

Prudential .787%

[SantiSuk]

Looks like it would be a better bet to invest the premiums in Thai life insurance companies!

I found that my wife was taking out life insurance on her own life. I asked why, given that she will be well off if I die and I will always take care of our kids if she died. Waste of 50k baht a year. 'The money's for my parents' she said - I can't rely on you looking after them (she's probably right!) Interesting insight into Thai family culture

Edited March 14, 2012 by SantiSuk

[chiangmaibruce]

At least for those paying tax in Thailand, there is some relief in that life insurance is a tax deduction (up to 100,000 bt)

http://www.rd.go.th/publish/6045.0.html

[fletchsmile]

Yes, Thai life insurance never struck me as good value for money.

Worth adding that a Thai woman aged 42 has a life expectancy on average of around 77, which is 35 years and well beyond the 20 year term.

Worth also adding that whole of life policies are often even worse value for money. Often better to get term insurance and invest separately that combine in a whole of life policy.

[TallGuyJohninBKK]

I did some research on this sometime back from an American's perspective...

Bottom line, far better value to buy a new term life insurance policy BEFORE you move to Thailand and while you're still a home country resident compared to trying to buy term coverage here from any of the Thai companies...

My Thai insurance broker explained to me once why the premiums for Thai life insurance here are so relatively high. Her advice was, don't buy it here.

You do have to be careful, though. Different companies and policies have different kinds of exclusions of coverage for people who may travel abroad a lot or live abroad ultimately. And for Americans, those regulations tend to be state-based, and vary state to state. So you want to be sure your U.S. policy doesn't get undone somehow if you end up living abroad eventually.