Life Insurance in Thailand: A Quick Primer

Why Life Insurance?

So this might be controversial, but I feel that if you live in a country where healthcare, education, support for disabilities, old age, and illness are taken care of by your government, you don’t absolutely need life insurance. Thailand, however, is not one of those countries.

I’ll admit it: I never bothered with life insurance. In my twenties, I felt invincible – mortality wasn’t even on my radar. In my early thirties, I skipped it because I was single, child-free, and all my other family members were financially stable. And in my forties, well, there’s two kids, a wife and the unfortunate realization that financial security is quite a few more years to go. Life insurance time.

When you matter to others, responsibilities come with the territory. It’s a privilege to be someone’s safety net. But what if you didn’t look both ways before crossing a busy Bangkok street? Actually, scratch that. What if you simply set foot on a street in Bangkok at the wrong time and in the wrong place?

If you’re reading this, that hasn’t happened (yet). Any life insurance you’d have bought so far would seem like a wasted investment. But here’s the thing: The problem with any financial product (and life) is that past performance is not a guarantee of future returns. In fact, you being alive, actually very much indicates you’ll be dead one day. The questions are only when and, more importantly, what happens next (both spiritually and practically): Like, how will your family afford their current and future lives if you aren’t part of it anymore?

While the spiritual aftermath is anyone’s guess, there is a pretty time-proven answer for the practical side of the “what happens next” problem: life insurance. Unfortunately, while life and death are straightforward, life insurance is anything but. I’ll break down the essentials, the pros and cons, and what steps you should consider next.

If you’re the kind of person who just wants the hard facts (in which case I apologize for not just posting a link to a spreadsheet), you can start reading here.

Disclaimer: This article may include links to products or services offered by ExpatDen’s partners, which give us commissions when you click on them. Although this may influence how they appear in the text, we only recommend solutions that we would use in your situation. Read more in our Advertising Disclosure.

How life insurance works in general

Life insurance is a deal between you and an insurance company: you pay regular premiums, and in exchange, they promise to give your beneficiaries a lump sum if you die, get diagnosed with a terminal illness or get a critical illness. The whole point is to make sure your loved ones are financially secure, covering things like rent or mortgage payments, living expenses, or even your kids’ future education. In short, it’s a safety net for your family if the worst happens. It fits in well with the kind of comprehensive insurance strategy you would want in an unpredictable environment such as Thailand.

Requirements to buy life insurance in Thailand

While some local insurers may request a residence certificate, others may accept alternative proof of address, such as a lease agreement or utility bill. A valid passport and long-term visa (e.g. a business visa, a marriage visa, or a retirement visa) are typically required.

If you cannot get life insurance from a local insurer, you can get it from an international provider instead. For example, William Russell has a life insurance plan for expats – and so do Allianz, AIA, and Friends Provident International (now acquired by RL360, so don’t buy that). And you can keep the plan even after you move out of Thailand. 

Going with a foreign insurer can also make a lot of sense if you think you might have to move abroad during the term of your insurance: Be it for health reasons, to take care of ailing relatives or because changes in your own employment.

Why buy life insurance – especially in Thailand

If you’re the bread rice winner in the family, you should have a plan for what happens if your loved ones have to make their way through the world without your support one day. Being dependent on hand-outs is a rough life in the best of places, which, again, Thailand isn’t (at least when it comes to receiving care without means). But there are other reasons as well:

Tax Advantages

In Thailand, life insurance premiums up to THB 100,000 per year can be deducted from taxable income. If the policy has a coverage period of at least ten years, you can claim this deduction when filing your personal income tax return. There are other ways to reduce your income taxes, but just like making the life insurance deduction, that requires you being able (and willing) to find work in Thailand in the first place.

And since we’re talking about taxes: I know these disclaimers are annoying, but I have to make them anyway: For detailed information, consult a tax professional or the Revenue Department of Thailand. This is not tax advice. Yada yada.

Your Own Health

Stress kills. Okay, technically it doesn’t kill you and instead only leads to high blood pressure, heart disease, stroke, obesity and diabetes. And those definitely kill, because these account for 3 of the top 10 causes of death in the United States in 2022 and that was at a time when Covid-19 was still making the list.

Few things are more stressful than worrying about the future of those you want to see succeed, even if you won’t be there to witness it. Life insurance provides peace of mind, putting those worries (and the stress that comes with it) to rest.

Your Partner’s Health

But it’s not just for yourself: Your spouse may be living with a certain kind of worry that they don’t feel comfortable bringing up. Who wouldn’t? Talking about your partner dying is uncomfortable, and especially so in Thailand, where many value harmony over straight talk. You’re the only one who can really address the issue – and if you don’t do it, no one will.

And maybe I shouldn’t add this here, but I’ll do it anyway: If the whole idea to get life insurance wasn’t yours, maybe your partner is just planning more for the future than you do. And hey, good for you to have found someone who reads the fine print. But if playing it safe is out of character for them, maybe evaluate if your priorities and values are aligned before making this kind of financial commitment.

Types of Life Insurance Available

There are many life insurance options available in Thailand, generally divided into four main types:

Term Insurance: Provides coverage for 10 to 20 years and pays out if you die during the coverage period. If you survive the term, there’s no payout, but premiums are more affordable compared to other types.

Lifetime Insurance: Offers lifelong coverage, paying out to your beneficiary if you pass away or, in some cases, to you when you reach a certain age.

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Endowment Insurance: Acts as both a savings and insurance plan, returning your premiums with interest after a specified number of years.

Retirement Insurance: Provides annual payouts with interest once you reach retirement age, offering financial security for your later years.

Some plans also come with optional add-ons, like health insurance, personal accident coverage, or education savings for your children.

Optional Add-Ons

While there are different products in the market, my universal experience is that you should always buy separate products for separate needs: If you want a savings plan, buy a savings plan. If you want life insurance, buy life insurance. If you want health insurance, buy health insurance.

The tendency of some providers to mix them is meant to target a common psychological weakness: People don’t like buy coverage that only pays out when something really bad happens. It’s a much easier sell though if it there is a guaranteed payout. Sounds good, but in reality they just combine two different products that they sell at the same time while adding a surcharge. Not great.

Life insurance plans with health insurance

Some insurance plan may come with health insurance coverage if you buy life insurance from them as well. While life insurance policies are generally guaranteed renewable, however, health insurance components may be subject to annual review. Insurers can adjust premiums or terms based on claims history and health status, though they cannot cancel your policy solely due to illness.

There are other products that offer other combined deals: Pay life insurance for 10 years and get health insurance for 25 years (Bangkok Bank offers one of those). Sounds great, right? Except you just pay your health insurance premiums in advance as part of the life insurance premium. And the complexity of the whole setup means that they can provide you with a subpar insurance product and increase their margin. No thank you.

Life insurance plans with saving or investment plans

Here, you and I go different ways. I like to do everything myself. Spreadsheets are a way of life for me. “Sounds good” is not something I say before I read the entire 31 pages of fine print myself. My Apple Reminder list as of right now has 187 entries – most of them referring to some kind of financial or other action I need to take in the upcoming year. As I said, not for everyone (though if that sounds great to you, check out. the ExpatDen article on investing your money in Thailand helpful).

Aside from not having to set up 187 reminders, there are other benefits that a life insurance with a savings or investment component offer:

Forced Savings Discipline: Individuals who struggle to save money might benefit from a policy that combines life insurance with savings, as it enforces regular contributions towards both protection and savings goals.

Guaranteed Returns: Those seeking low-risk investments with predictable outcomes might prefer these policies, as they often offer guaranteed returns or cash value accumulation over time.

Estate Planning: People interested in leaving a financial legacy or planning their estate may find these policies beneficial due to their cash value component and potential tax advantages.

Long-Term Financial Goals: If you have specific long-term goals like funding your children’s education or planning for retirement, these combined policies can provide a structured way to achieve them.

Tax Benefits: In some cases, the investment component may grow tax-deferred, providing potential tax advantages depending on local regulations.

It’s important to consult a financial advisor to determine if such a policy aligns with your financial objectives and circumstances. Ideally pick one that doesn’t sell you a lot of front-loaded fee garbage. Remember: If they call (or e-mail) you without you reaching out first, they most likely will take advantage of you.

Health Checks

Some life insurance plans require a health check. That can be a stumbling block. But it does depend on how old you are and how much insured it is. A friend of mine got like USD 200,000 and he’s under 45 years old – so all he needed was an HIV test. If you’re above 45 or need more than USD 500,000, they’ll ask for medical requirements – and that can be a hassle. But once you prove you’re healthy, then you’re all locked in, good to go and they can’t deny you for anything.

Life Insurance Companies and Plans

So let’s get to the beans: Which life insurance plans actually make sense in Thailand? And the clear answer is: a) it depends and b) you’ll need to ask a broker about your specific situation. Okay, that hasn’t been super helpful, so let me go a bit further and give my actual thoughts.

I’d say there’s two categories you should consider: “Proper” providers (fully medical underwritten and requiring a health check), cheap providers that will still accept you even if you’re a bit older (no underwriting or medical exams required).

Technically there is a third category which includes all the stuff being sold at local banks (which make up like 25% of the local life insurance market), but given those people usually know nothing about being an expat or how it’ll affect your needs, I’d only ever consider those if you independently verified that the offered product is the right choice because you won’t get much out of the consultation there.

Proper Provider Pick: Atlas Life

Atlas Life stands out as a “proper” provider, meaning it operates with fully medical underwritten policies that require a health check before approval. This generally translates into more comprehensive coverage, a wider range of options, and premiums based on your specific health profile. Atlas Life is one of the few providers in Thailand offering truly international coverage with robust support for expatriates who might be living here temporarily or with plans to relocate elsewhere. While the upfront process might feel a bit more rigorous with all the medical exams and paperwork, the payoff is coverage that’s typically more tailored, reliable, and secure.

What makes Atlas Life appealing for expats is its strong focus on expatriate-specific needs. For example, their policies often cover scenarios that are more likely to arise for those leading mobile lifestyles, like worldwide emergency evacuation and flexible benefit options that you can adapt as life situations change. They also offer policy options that cater to individuals looking for long-term financial planning, as many expats do when moving abroad, making it a solid choice for those who want an actual safety net rather than just a box checked.

Cheap-One-For-Older-People Pick: Pacific Cross International

Pacific Cross International fills an important gap in the Thai insurance market by offering plans that don’t require medical underwriting or health exams, making them accessible for older applicants or those with pre-existing conditions. While these plans might not offer the same depth of benefits as fully underwritten policies, they’re a practical option if you’re on a budget or if a health check feels like a barrier to entry. In other words, if you’re looking for straightforward coverage without too many hoops to jump through, Pacific Cross can be a more affordable choice.

The no-underwriting approach means Pacific Cross plans are simpler and faster to set up, and you won’t be penalized for health issues that might otherwise limit your options. Their policies often come with decent basic coverage, like emergency medical evacuation and routine hospital care, although it’s essential to check the fine print on limits and exclusions.

You might have some questions, so let’s tackle a few common ones.

Frequently Asked Questions

While I was fact-checking this article, I came across a lot of wrong replies to questions being asked on Reddit, Facebook and other online communities. Here are the corrections if you so will:

Can expats buy life Insurance?

Well, yes. But you probably figured that out already this far into the article. Now there are some unique situations: Being married to a Thai national or having an age difference does not generally make it difficult for expats to obtain life insurance. However, significant age differences between the policyholder and the beneficiary might raise questions during the underwriting process due to concerns about insurable interest or potential fraud.

How long do you need to live in Thailand before you can get life insurance?

You might have heard that you need in Thailand for at least a year, though that’s not entirely correct. While insurance companies may have specific requirements, there is no legal mandate that you must have lived in Thailand for at least one year or have a resident certificate to purchase life insurance. The key requirements typically include having a valid long-term visa (e.g., business, marriage, retirement) and proof of residence.

Can I make my girlfriend/boyfriend the beneficiary of a life insurance policy?

Thai law does not prohibit naming a non-relative or unmarried partner as a beneficiary. However, insurers may require proof of an insurable interest, meaning the beneficiary would suffer a financial loss upon the policyholder’s death. Having a good life insurance broker should help you navigate this.

Does life insurance pay out in case of suicide?

Most life insurance policies include a suicide exclusion period, typically two years from the policy start date. If the insured commits suicide within this period, the insurer may not pay the death benefit.

What happens to a life insurance policy if the policyholder dies due to … ahm, ‘unlawful circumstances’?

I mean, probably not a good sign if you’re asking yourself that question. First step should be moving to a new place located on the ground floor. Jokes aside – if the policyholder dies as a result of a homicide, the life insurance policy generally provides the death benefit to the designated beneficiaries. However, if the beneficiary is found legally responsible for the policyholder’s death, they are typically disqualified from receiving the payout based on legal principles that prevent profiting from wrongdoing.

Can you keep your life insurance if you move abroad?

Not all Thai insurance policies can be transferred or maintained when you relocate internationally. Usually, this option is only available through international insurance companies that have offices in Asia and the country you move to.

One of the insurance companies that allows you to do so is Friends Provident International – which, again, is owned by RL360, so avoid them. The others should be okay.

If you plans to relocate, it’s crucial to discuss this with an insurance who knows what they’re doing (I included a recommended at the end of this article). Some policies may offer continued coverage abroad, especially if premiums are maintained, while others may not. International life insurance policies can offer greater flexibility for expats.

Making Your Decision

So what’s next? You’ll need to talk to someone (preferably in person or on a call) who can answer your remaining questions. By which I mean a knowledgeable insurance broker who is used to dealing with expats.

I’m usually a DIY guy when it comes to paperwork and finances. In the case of life insurances you’re looking at a long term financial commitment that’ll have real consequences. You want to be sure to talk to someone you can trust and who can not only answer any questions you have, but also questions you didn’t know you should ask.

It’s also tough to receive recommendations from someone who doesn’t work in the industry or has a background on financials. Sure, friends can share their experiences of interacting with someone as a human, but what ultimately matters is what’s in the fine print. And maybe your friends are different, but mine usually don’t read it.

The reason I would only talk to insurance brokers who often deal with expats (and better, also are expats themselves) is that the situation for locals and foreigners is quite different. Tax implications – not just in Thailand but also in your home country, future international moves as well as legal implications are just not on the radar for local insurance brokers.

And at this point this article used to end by sending you to a list of insurance brokers with a recommendation to do your own research.

For the first 7 years of running ExpatDen, I didn’t have a recommendation for an insurance broker that deals in life insurance – simply because no one I talked to was up to standard. And while it’s true that everyone should do their own research, I felt readers were in tough spot to really judge the quality of advice you’re receiving.

I ended up contacting a friend of mine who has worked in the insurance industry for more than a decade and who shall remain anonymous (if the right person is reading this, you know who you are – thank you!) – mostly because she had the dirt on pretty much everyone operating in South East Asia. She was so kind as to use her connections and find me someone who she’d be willing refer her own mom to. One of her recommendations that I ended up going with was Tenzing Pacific. They walked me through their process as well as every major product they’re offering before providing me with the quote that sold me. I have since put together a more in-depth review of Tenzing and referred other friends to Tenzing and have to hear anything negative.

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While I found Tenzing Pacific’s services exceptional, it’s important to find a broker who resonates with you. I encourage you to explore multiple options, ask questions, and choose a professional who understands your individual circumstances and can offer tailored advice. The right broker can make all the difference in securing the best policy for your needs.

Some parting advice

In the grand scheme of things, life insurance is more than a policy – it’s a promise to protect those you care about most. Whether you’re new to Thailand or have made it your long-term home, understanding your life insurance options is a crucial step in financial planning. Take the time to explore what’s available, consult professionals, and choose a path that offers peace of mind for you and security for your loved ones. Amen.