What is Life Insurance?

Life insurance pays a lump sum to beneficiaries on death or returns funds at maturity. Comes in many forms — protection, savings, and investment — choose based on your financial goals.

Types of Life Insurance

4 main types, each for different goals

🛡️ Term Life

Protection Only

Cheapest. Covers death for a set period. No cash value.

  • ✓ Low premiums, high coverage · Best for breadwinners

♾️ Whole Life

Protection + Savings

Lifetime coverage with cash value. Fixed premiums.

  • ✓ Guaranteed lifetime · Cash value accumulates

🏦 Endowment

Savings + Protection

Protection + periodic payouts + lump sum at maturity.

  • ✓ Periodic cash returns · Long-term planning

📈 Unit Linked

Investment + Protection

Part protection, part mutual fund investment. Returns not guaranteed.

  • ⚠ Flexible but returns fluctuate

How to Choose

  1. 1. What's your goal? — Protection → Term / Save → Endowment / Invest → Unit Linked
  2. 2. How much coverage? — 10× annual income for breadwinners
  3. 3. Can you afford it? — Should not exceed 10-15% of income
  4. 4. Critical illness rider? — Small extra, pays lump sum on critical illness
  5. 5. Check CAR ratio — Must be above 140% per OIC

How Much Does Life Insurance Cost?

Price range for 1M THB, 20-year Term Life

AgePremium (THB/yr)
253,000–5,000
304,000–7,000
355,500–10,000
408,000–16,000
4512,000–25,000
5018,000–40,000
Note: Endowment and Whole Life premiums are 3-10× higher due to savings/investment components.

Pros and Things to Know

✓ Pros

  • Tax deduction up to 100K/year
  • Protects family
  • Some plans return cash
  • Fixed premiums

⚠ Things to Know

  • Long-term commitment — Early cancel loses money
  • Returns lower than funds
  • Health screening — High coverage/older
  • Unit Linked is complex

Tax Deduction

💰 Tax Benefits

Life premiums deductible up to 100,000 THB/year (combined with health). Policy must be 10+ years.

Pension-type adds 200,000 THB/year (combined with RMF/SSF up to 500,000).

How to Save on Life Insurance

  1. 1. Buy young — Age 25 premiums are 2-3× cheaper than age 40
  2. 2. Choose Term Life for protection only — 5-10× cheaper than endowment
  3. 3. Pay annually — Save 2-5% vs monthly
  4. 4. Don't smoke — Non-smokers save ~30-50% on premiums
  5. 5. Compare across insurers — Premiums can vary 20-40% for the same coverage

How to Apply for Life Insurance

📋 Application Steps

  1. Compare plans — choose type and coverage
  2. Fill in personal + health info
  3. Health screening (if required)
  4. Pay first premium installment
  5. Receive policy in 7-14 days

✅ Life Insurance Claims

  1. Report — beneficiary contacts insurer
  2. Submit docs — death certificate, ID, policy
  3. Insurer reviews 15-30 days
  4. Lump sum paid to beneficiary account

FAQ

QLife vs health insurance?
Life pays lump sum on death/maturity. Health pays medical bills. Different purposes — have both.
QBest for beginners?
Term Life — cheapest, highest coverage, easy to understand.
QTax deduction amount?
Up to 100,000 THB/year (10+ year policies). Pension adds 200,000.
QCan I cancel mid-term?
Yes, but you get cash surrender value which is less than premiums paid.
QIs Unit Linked good?
Good if you understand investing. Returns aren't guaranteed. For protection only, Term Life is cheaper.
QBest age to buy?
Sooner is better — lower premiums, easier health approval. Ages 25-35 are ideal.

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