Life insurance - 3 Thai policies better than 1 foreign policy?

[simon43]

I had a chat today with an overseas broker concerning term life insurance policies. I was asking about a 3 million baht, 15 year term policy to benefit my 3 kids in equal amounts in case I popped my clogs early.

He gave me a monthly premium quote which was reasonable, but then told me an interesting snippet of information. He explained that he couldn't offer me cover from a Thai insurer, because they tended to only offer term life cover up to lower amounts, such as 1 million baht.

But he then let slip that the monthly premiums for those 1 million baht policies were typically much cheaper than the equivalent for an overseas, 1 million baht policy.

He was talking about respectable, Thai life insurance companies, not some back street outfit that won't pay up.

So it crossed my mind. Would I be better off by purchasing 3 separate, 1 million baht term, life policies from a Thai company, with each policy cover being written in favour of each of my kids?

[rgs2001uk]

Change your broker, he is talking crap.

[simon43]

Change your broker, he is talking crap.

Sure about that?

I did a quick check this morning with Thai life insurers and what my broker said seems to be true. A 1 million baht, (their maximum cover) term life policy is significantly cheaper than a similar policy from an international company....

[mania]

Seems logical as risk is spread among 3 smaller policies

[stevenl]

He means ' I can not sell Thai companies because I'm not allowed to'.

[rgs2001uk]

Change your broker, he is talking crap.

Sure about that?

I did a quick check this morning with Thai life insurers and what my broker said seems to be true. A 1 million baht, (their maximum cover) term life policy is significantly cheaper than a similar policy from an international company....

Where?

In Thailand or England?

What is he actually trying to sell you, not one of these worthless cassaurance polices per chance?

[simon43]

What is he actually trying to sell you, not one of these worthless cassaurance polices per chance?

Friends Provident...

[rgs2001uk]

What is he actually trying to sell you, not one of these worthless cassaurance polices per chance?

Friends Provident...

FP, F F S,

See post #2

[simon43]

FP, F F S,

See post #2

Your comment makes no sense to me. AFAIK, Friends Provident is a very respected UK insurance company. BTW, I was discussing insurance with a broker (who has access to a wide range of insurance policies and companies), not the FP rep.

[konying]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

[stevenl]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

[konying]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

Do not think so. IF you took out 3 policies on the same car, would they all pay for the same car if damaged?

[laolover88]

Age?

At my advanced age it is difficult to get insurance for anything, anywhere, including the cat.

[AnotherOneAmerican]

What is he actually trying to sell you, not one of these worthless cassaurance polices per chance?

Friends Provident...

Please note, there are many Friends Provident,

Friends Provident UK, solid company.

Friends Provident International (IoM), worthless cheating scam artists. Very popular with unregistered brokers as they pay HUGE commissions. (often the first 15% of your payments).

Your comment makes no sense to me. AFAIK, Friends Provident is a very respected UK insurance company. BTW, I was discussing insurance with a broker (who has access to a wide range of insurance policies and companies), not the FP rep.

Yeh, but he isn't selling you a policy from the UK company (cos they only pay out to UK residents).

FPI, which is almost certainly what he is selling, pay the highest commissions, why else would he try to sell them to you?

He just didn't mention "International" and hopes you don't know any better.

There's also a Friends Provident International in Singapore, I believe another separate company with no links to either of the other two.

Edited December 20, 2014 by AnotherOneAmerican

[cornishcarlos]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

Do not think so. IF you took out 3 policies on the same car, would they all pay for the same car if damaged?

Life policies are completely different to things like car insurance or accident insurance.

All 3 life policies would have to pay our on death.

Not so with an accident, you can only claim on 1 policy.

[stevenl]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

Do not think so. IF you took out 3 policies on the same car, would they all pay for the same car if damaged?

Can't compare the 2.

What you say in an issue with different policies providing the same cover, for example illness while on travels, which can be covered by travel insurance and health insurance. But with life insurance this is not an issue, provided of course there is no suspicion of fraud (terminal cancer patient takes out 10 policies for a total amount of millions of Euros e.g.).

[konying]

I would check the legality in terms of if you had 3, why would other 2 pay after the first one paid .

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

Do not think so. IF you took out 3 policies on the same car, would they all pay for the same car if damaged?

Can't compare the 2.

What you say in an issue with different policies providing the same cover, for example illness while on travels, which can be covered by travel insurance and health insurance. But with life insurance this is not an issue, provided of course there is no suspicion of fraud (terminal cancer patient takes out 10 policies for a total amount of millions of Euros e.g.).

Sort of what i meant.

There is nothing to stop other 2 to refuse to pay out and you(the dead person) is not here to argue or provide any evidence.

Have to keep in mind, insurance companies usually look for ways not to pay or pay less, having 3 policies might be a good enough reason to refuse.

Not arguing, just saying for me i would be concerned.

[stevenl]

Sorry, this makes no sense. Of course it is legal to have more than one policy, and of course they are all required to pay out.

Do not think so. IF you took out 3 policies on the same car, would they all pay for the same car if damaged?

Can't compare the 2.

What you say in an issue with different policies providing the same cover, for example illness while on travels, which can be covered by travel insurance and health insurance. But with life insurance this is not an issue, provided of course there is no suspicion of fraud (terminal cancer patient takes out 10 policies for a total amount of millions of Euros e.g.).

Sort of what i meant.

There is nothing to stop other 2 to refuse to pay out and you(the dead person) is not here to argue or provide any evidence.

Have to keep in mind, insurance companies usually look for ways not to pay or pay less, having 3 policies might be a good enough reason to refuse.

Not arguing, just saying for me i would be concerned.

Yes, there are the policies forcing the other 2 to pay out. Having 3 policies is not a reason to refuse, but I would recommend to be upfront about this before closing the policy.