Life Insurance

General topics related to Living in Chile
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tiagoabner
Rank: Chile Forum Citizen
Posts: 288
Joined: Sat Mar 04, 2017 9:48 am
Location: Santiago

Re: Life Insurance

Post by tiagoabner » Sat Aug 04, 2018 8:15 pm

To give you a scope of how bad these numbers are, that's a roughly USD $210000 policy with a $840 annual premium. Meanwhile, I'm 30 y/o and the insurance company I have a policy with would charge me $340 per year for that policy. And that's for an expat-tailored, premium policy from an A+ rated company (same as Ohio National) which is valid worldwide.

So yeah, nope the f*ck out of that offer, it's terrible.

at46
Rank: Chile Forum Citizen
Posts: 543
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: Life Insurance

Post by at46 » Sat Aug 04, 2018 11:37 pm

In Canada a 20 year term life for a 38 yo male non-smoker with CAD 272K payout, which is roughly equivalent to USD 210K at today's exchange rate, costs CAD 34.57 per month or USD 26.61.
https://www.photobox.co.uk/my/photo/ful ... 0942710505

Britkid
Rank: Chile Forum Citizen
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Joined: Wed Dec 05, 2012 6:59 pm
Location: Talagante area, Chile
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Re: Life Insurance

Post by Britkid » Mon Aug 06, 2018 12:52 pm

tiagoabner wrote:
Sat Aug 04, 2018 8:09 pm
I'm not in Chile any longer, but I'll get the contact for the guys I know in there to check this out. Unless you smoke, the price seems way higher than I expected. What's your current age? I can use that to run a more accurate guesstimative through the backend of a couple of insurance companies.

My 2 cents are on the broker you went through having no idea about what he was doing and running a quote for a policy full of riders. Things that are overpriced, such as "double benefit amount in case of accidental death". Also, did they include disability benefits on the policy, or was it term life only?
I do not smoke. I am 38. I included something called "Invalidez Total Y Permanente 2/3" but they said it didn't make much difference to the quote.

I think the reasons Chilean quotes are coming out high could be because of inefficiencies in the system - European/North American quoters are generating quotes online with no labour time, while Chileans are visiting my house or printing out things while I visit them at their office.

And economies of scale and superior analytical risk management allowing for lower profit margins with a higher confidence level.

And consumers in Chile being a bit clueless since they don't have price comparison websites etc (or if they do they aren't well known).

Could I get a quote from Ohio National in the US or other North American providers even though I don't live in North America or have ties there? I'm guessing that won't work.
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

Britkid
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Re: Life Insurance

Post by Britkid » Mon Aug 06, 2018 12:57 pm

The life insurance policy I have with Standard Life in the UK is a 100,000 pounds payout (say US$130,000k) and the monthly premiums are about 6 pounds (say US$10 or US$120 per year): so that's even a bit better than your North American quoted policies and I can keep it to 2037 which I very likely will.

They just wouldn't let me extend it to a larger amount after I'd left the UK, which I should have done before leaving the UK.

I honestly don't know why I even chose such a low amount in the first place.
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

at46
Rank: Chile Forum Citizen
Posts: 543
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: Life Insurance

Post by at46 » Mon Aug 06, 2018 10:15 pm

At 2% target inflation in the UK, USD 130K turns into USD 60,330 in 38 years at today's prices. Whereas UF protects you from inflation. Perhaps, that is the reason for the price difference in Chile vs UK.

Britkid
Rank: Chile Forum Citizen
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Joined: Wed Dec 05, 2012 6:59 pm
Location: Talagante area, Chile
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Re: Life Insurance

Post by Britkid » Tue Aug 07, 2018 2:13 pm

In the Chilean quote, BOTH the payout and the monthly charge are in UF so the relationship between monthly charge and the payout stays constant.

In the UK quote, both the payout and the monthly charge are in pounds.

So it's a bit difficult to get your head around it but I think your argument is perhaps wrong.
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

at46
Rank: Chile Forum Citizen
Posts: 543
Joined: Fri Sep 20, 2013 6:13 pm
Location: Vancouver/Santiago

Re: Life Insurance

Post by at46 » Tue Aug 07, 2018 4:07 pm

Jaja I guess it is wrong. But at least it's a straightforward deal in Chile whereas who knows when and by how much they're going to hyperinflate your payout in the UK.

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