Lately I have been struggling with life insurance. I have been carrying a term insurance policy with SunLife of Canada for the past 30 years. The monthly premiums have been reasonable. They are set for 5 year periods. For age 60-65 the premiums were $150 a month. I was just notified that for the years 66-70 the premiums would be $580 a month. I admit that I am not an actuarial expert but that appears to be a 287% increase in my premiums. ([(580 - 150) / 150] × 100% = 2.8666666666666667 × 100% = 286.6666666666667%). Does that mean I now have a 287% more chance of dying in the next 5 years. I think not.
When I queried SunLife on this I was told I have a very old policy and it was not competitive with new policies. I was also told that if I took a full medical in Canada that I would qualify for a 10 year rate of $225 a month. My original policy guaranteed me coverage to age 75 at moderately increasing rates every 5 years. I see this as an unethical push to get me to quit my original policy and get re-insured if, and only if, I am completely 100% healthy at the new rate and new plan. Nothing like SunLife hedging their bets to make sure I will never have to collect! I am sure that 30 years ago, things like HIV, aids, etc. did not exist and the new policies have riders mentioning them etc. I can just imagine the discussion in the boardroom on how to force loyal, long term customers out of those plans into new plans, as long as they have no existing preconditions. Let's just make the old policy too expensive to renew!
As readers of this blog, you will understand that I desire life insurance because I now have a new partner and 2 year old son to support. I am also in good physical condition and do not think I would have any issues with a full medical, but the fact that it has to be taken in Canada will require me to fly there at a cost of $2000 to take the medical. I do not plan on going back to Canada until next summer so I would have to pay the increased premium for 10 months or $5,800 dollars before converting my plan. Between a rock and a hard place :-)
So what does this have to do with the concept of karmic destiny or chata. Thais live very much in the present, believing that the future is preordained, and dependent on how they live in the present. When I mentioned to Thavorn that I was having difficulty with life insurance she told me not to worry, if we not have, no problem, I not have before I meet you. We not need, you are healthy and have good heart. Not that much different in believing that the good Lord will provide.
On a more pragmatic note, she also said insurance companies seldom pay out in Thailand. On checking the newer policies I can see why. If you die in a motor vehicle accident with alcohol in your system, and you are the driver, then you are SOL (Shit Out of Luck) Dying in a motor vehicle accident while DUI is probably the number one cause of death for Thais.
So basically Thavorn has told me not too worry, if not have, okay, she will survive and look after Jaidan. Does that make me feel warm and fuzzy? No, but I would immediately start plowing the $580 a month into a savings plan for Thavorn and Jaidan. In the meantime I am still researching the net for alternative plans.
I do believe the best health insurance plan is a gym membership and a healthy diet, combined with a fun lifestyle that makes you smile :-) I will keep you informed.
Meanwhile the outdoor kitchen looks like it will get finished today.
TTYL
Starting up that investment with the life insurance money seems like just as good to me. I like the insurance plan you describe in your last paragraph.
ReplyDelete