Searching For A Good Life Insurance

[Superdude]

Hi everyone,

I'm looking for some info about good life insurances.

The reason is that I want to deduct them from my taxes but also get a nice revenue from it in the future.

Anyone of you having any idea which one can be proposed?

[FalangBaa]

Do you have a Thai wife? Then I'd advise you against life insurance. It could very well be the death of you.

[QED]

You will receive lots of PM's from 'financial advisors' now, hehe.

Seriously, following the old endowment shambles in the UK, the first thing any financial advisor worth his salt should tell you is to keep your life insurance and savings separate. ie you have a term life assurance, which only provides a return in the event of death - bit like car insurance, you don't get a rebate if you don't claim. Then what you would have put in the savings element goes into a separate savings plan. More effeicient (potentially more tax efficient), more transparent, less hidden charges.

However the schemes that give you a lump sum at the end if you don't claim, a la endowment, pay huge comissions which come from huge charges on your savings, so expect every 'financial advisor' in this country to recommend this option over what I outlined above.

Also agree with above poster - don't tell your wife about the policy

[Superdude]

You will receive lots of PM's from 'financial advisors' now, hehe.

Seriously, following the old endowment shambles in the UK, the first thing any financial advisor worth his salt should tell you is to keep your life insurance and savings separate. ie you have a term life assurance, which only provides a return in the event of death - bit like car insurance, you don't get a rebate if you don't claim. Then what you would have put in the savings element goes into a separate savings plan. More effeicient (potentially more tax efficient), more transparent, less hidden charges.

However the schemes that give you a lump sum at the end if you don't claim, a la endowment, pay huge comissions which come from huge charges on your savings, so expect every 'financial advisor' in this country to recommend this option over what I outlined above.

Also agree with above poster - don't tell your wife about the policy

No worries. Don't have a wife

Thanks for the replies anyway

[falang07]

Or if you have a Thai wife, make sure to appoint your mother or someone in the farangland as the beneficiary of this life insurance (and make sure the Thai wife knows it, too), but this could be as well the end of your marriage

[fletchsmile]

ING and Prudential are two of the better ones.

My views:

- Most places in the world it makes sense to separate the concepts of investment and insurance. Combined policies are usually bundled together for commission and fees purposes, which make it less transparent to analyse both components, and to the benefit of the providers not the buyers.

- With that in mind a term insurance (if you need insurance) and separate investment, generally make more sense than a whole of life policy where they combine the two. Additionally it makes sense to pick the best investment house and the best insurance house. Rarely do companies excel at both, and even if they do, rarely is it synergised for your benefit. Fund management houses generally attract better fund managers than insurers, as that is their core business so they pay more to attract the best.

- Ask yourself why you want life insurance anyway if you have no wife and no dependents.

- That said. Taking out a combined insurance and investment policy is better than not saving and investing at all. So may be suitable for lazy people with not much idea. The tax benefit can be useful. What is also useful is to compare the cost/fees charged for insurance with the tax benefit gained. You'd be hoping the tax gain outweighs the fees. If the fees are not easy to work out compared to a pure investment that's not a good sign. The costs to you are not just the commision, and ongoing charges, but also cost of insurance. Many companies don't nicely split it out

- Don't take out investments just for the tax. Choose good investments with the tax element viewed as a bonus. A tax benefit is a one off for each premium. A good investment can (arguably should be able to) last a lifetime

- Generally life insurance rates in Thailand are expensive compared to the West. It can easily cost 2,3 x more for every say $100k of insurance. On the other hand be careful getting from your home country just because it's cheaper, as you'll find some have exclusions if you are not living in there, but living in Thailand.

- If you haven't already done so, look at Long Term Equity Funds (LTFs), if you're working. The tax rate benefits are similar, but the allowance is higher than for insurance at up to 500k a year, on which you can get up to 37%

BTW For those policies like whole of life policies which pay out on either death or age 80. Think who exactly is going to benefit. Realistically when you're dead it's no good to you, and 80 you may not be far off. So think hard who that other person might/could be in the future if any. While it sounds a good idea, and you may like the idea of a pot of money at a certain time, think realistically how many people actually start splashing out on luxuries, world tours combined with an extravagant lifestyle at age 80. Those luxuries are nice earlier in life when you are still young enough to enjoy them. I'm not saying p*** all your money away when you're young. Just common sense like you are more likely to be active at 50 or 60 than 80 - a very common and overlooked fact by people that by these policies and like the idea - so why tie yourself up to 80 with such inflexibility?. People generally spend more money in their active 60's than in their 80's

All that said, the policies can make sense in some situations...

Edited July 5, 2012 by fletchsmile

[hansnl]

Say again?

You are looking for a good life insurance?

Are you serious?

I presume you mean good for you, yes?

There are none.

Life insurance is only good for the companies.

You should know by now that banks and insurance companies are legalised criminal institutions.

[QED]

ING and Prudential are two of the better ones.

My views:

- Most places in the world it makes sense to separate the concepts of investment and insurance. Combined policies are usually bundled together for commission and fees purposes, which make it less transparent to analyse both components, and to the benefit of the providers not the buyers.

- With that in mind a term insurance (if you need insurance) and separate investment, generally make more sense than a whole of life policy where they combine the two. Additionally it makes sense to pick the best investment house and the best insurance house. Rarely do companies excel at both, and even if they do, rarely is it synergised for your benefit. Fund management houses generally attract better fund managers than insurers, as that is their core business so they pay more to attract the best.

- Ask yourself why you want life insurance anyway if you have no wife and no dependents.

- That said. Taking out a combined insurance and investment policy is better than not saving and investing at all. So may be suitable for lazy people with not much idea. The tax benefit can be useful. What is also useful is to compare the cost/fees charged for insurance with the tax benefit gained. You'd be hoping the tax gain outweighs the fees. If the fees are not easy to work out compared to a pure investment that's not a good sign. The costs to you are not just the commision, and ongoing charges, but also cost of insurance. Many companies don't nicely split it out

- Don't take out investments just for the tax. Choose good investments with the tax element viewed as a bonus. A tax benefit is a one off for each premium. A good investment can (arguably should be able to) last a lifetime

- Generally life insurance rates in Thailand are expensive compared to the West. It can easily cost 2,3 x more for every say $100k of insurance. On the other hand be careful getting from your home country just because it's cheaper, as you'll find some have exclusions if you are not living in there, but living in Thailand.

- If you haven't already done so, look at Long Term Equity Funds (LTFs), if you're working. The tax rate benefits are similar, but the allowance is higher than for insurance at up to 500k a year, on which you can get up to 37%

BTW For those policies like whole of life policies which pay out on either death or age 80. Think who exactly is going to benefit. Realistically when you're dead it's no good to you, and 80 you may not be far off. So think hard who that other person might/could be in the future if any. While it sounds a good idea, and you may like the idea of a pot of money at a certain time, think realistically how many people actually start splashing out on luxuries, world tours combined with an extravagant lifestyle at age 80. Those luxuries are nice earlier in life when you are still young enough to enjoy them. I'm not saying p*** all your money away when you're young. Just common sense like you are more likely to be active at 50 or 60 than 80 - a very common and overlooked fact by people that by these policies and like the idea - so why tie yourself up to 80 with such inflexibility?. People generally spend more money in their active 60's than in their 80's

All that said, the policies can make sense in some situations...

On the whole good advice, however I would argue that a whole of life (WOL) policy would not pay out at age 80, it will do as the name suggests and cover you for the whole of your life, and only pay out on death.

For something to pay out at a specific age then it must be set up for a specific term, and would then be an endowment.

[yoshiwara]

BTW For those policies like whole of life policies which pay out on either death or age 80. Think who exactly is going to benefit. Realistically when you're dead it's no good to you, and 80 you may not be far off. So think hard who that other person might/could be in the future if any. While it sounds a good idea, and you may like the idea of a pot of money at a certain time, think realistically how many people actually start splashing out on luxuries, world tours combined with an extravagant lifestyle at age 80. Those luxuries are nice earlier in life when you are still young enough to enjoy them. I'm not saying p*** all your money away when you're young. Just common sense like you are more likely to be active at 50 or 60 than 80 - a very common and overlooked fact by people that by these policies and like the idea - so why tie yourself up to 80 with such inflexibility?. People generally spend more money in their active 60's than in their 80's

Indeed it is a bet against death. The only insurance you should be interested in is that which covers your partner's and/or your children's welfare in the event of your death. Most policies begun late in life are a waste of money as a decent pot takes decades to accumulate assuming the company hasn't milked it dry.

[fletchsmile]

ING and Prudential are two of the better ones.

My views:

- Most places in the world it makes sense to separate the concepts of investment and insurance. Combined policies are usually bundled together for commission and fees purposes, which make it less transparent to analyse both components, and to the benefit of the providers not the buyers.

- With that in mind a term insurance (if you need insurance) and separate investment, generally make more sense than a whole of life policy where they combine the two. Additionally it makes sense to pick the best investment house and the best insurance house. Rarely do companies excel at both, and even if they do, rarely is it synergised for your benefit. Fund management houses generally attract better fund managers than insurers, as that is their core business so they pay more to attract the best.

- Ask yourself why you want life insurance anyway if you have no wife and no dependents.

- That said. Taking out a combined insurance and investment policy is better than not saving and investing at all. So may be suitable for lazy people with not much idea. The tax benefit can be useful. What is also useful is to compare the cost/fees charged for insurance with the tax benefit gained. You'd be hoping the tax gain outweighs the fees. If the fees are not easy to work out compared to a pure investment that's not a good sign. The costs to you are not just the commision, and ongoing charges, but also cost of insurance. Many companies don't nicely split it out

- Don't take out investments just for the tax. Choose good investments with the tax element viewed as a bonus. A tax benefit is a one off for each premium. A good investment can (arguably should be able to) last a lifetime

- Generally life insurance rates in Thailand are expensive compared to the West. It can easily cost 2,3 x more for every say $100k of insurance. On the other hand be careful getting from your home country just because it's cheaper, as you'll find some have exclusions if you are not living in there, but living in Thailand.

- If you haven't already done so, look at Long Term Equity Funds (LTFs), if you're working. The tax rate benefits are similar, but the allowance is higher than for insurance at up to 500k a year, on which you can get up to 37%

BTW For those policies like whole of life policies which pay out on either death or age 80. Think who exactly is going to benefit. Realistically when you're dead it's no good to you, and 80 you may not be far off. So think hard who that other person might/could be in the future if any. While it sounds a good idea, and you may like the idea of a pot of money at a certain time, think realistically how many people actually start splashing out on luxuries, world tours combined with an extravagant lifestyle at age 80. Those luxuries are nice earlier in life when you are still young enough to enjoy them. I'm not saying p*** all your money away when you're young. Just common sense like you are more likely to be active at 50 or 60 than 80 - a very common and overlooked fact by people that by these policies and like the idea - so why tie yourself up to 80 with such inflexibility?. People generally spend more money in their active 60's than in their 80's

All that said, the policies can make sense in some situations...

On the whole good advice, however I would argue that a whole of life (WOL) policy would not pay out at age 80, it will do as the name suggests and cover you for the whole of your life, and only pay out on death.

For something to pay out at a specific age then it must be set up for a specific term, and would then be an endowment.

The terminology used in Thailand may not always be the same as your own home country. Some examples below. I can't remember which company was life or 80. Prudential have a "Wholelife policy" which runs to age 99 and another to 90, and as we know people live beyond that. Bangkok Bank has a "Whole Life" policy with a payout aged 85. The word endowment which you or I might use is also much less used in Thailand.

http://www.bangkokba...elifefirst.aspx

http://www.prudentia...u-Whole-Life-10

http://www.prudentia...px?Whole-Life-1

Edited July 7, 2012 by fletchsmile