Royal Insurance Corporation of Bhutan Ltd (RICB) launched a Drukyul Life Insurance Plan.
Some of my friends appear so excited as the plan guarantees Nu.100,000 benefits when a household member passes away.
“Nu.100,000 for an annual premium of just Nu.700?” they exclaim. “What an exciting insurance plan?”
But there is a catch – they seem to miss – which I will share.
Drukyul Life Insurance is a Group Insurance Scheme (GIS) at a household level. What does it mean?
When the company provides GIS, an equal amount of GIS premium will be deducted from the salary of all the staff.
If there are 100 employees, a total GIS premium of all the 100 employees must be paid to keep the GIS valid and active.
All these 100 people are legally under one same insurance contract. And benefits can be claimed by the company in the event of death.
It’s a all-members/no-insurance kind of policy.
The Drukyul Life Insurance Plan will also work like this but at a household level. Just consider your household a small company.
How is it Similar to the Rural Life Insurance
Drukyul Life Insurance Plan and Rural Life Insurance are both plain term insurance plans unlike GIS which has an element of investment.
When a member is dead, in both the cases the benefits will be paid upon producing certain accepted proofs of death.
How is it Different from Rural Life Insurance
This insurance plan in design is like GIS. When GIS gets 100% tax rebate, I think this also deserves a tax rebate incentive.
Would I Take a Drukyul Life Insurance Plan
We must be grateful for RICBL. They are indeed taking a huge risk in this plan. Looks like households having old or sick members will do it to take an advantage of the plan.
If your household doesn’t have 5 and more members, you cannot signup for the Drukyul Life Insurance Plan.
However, if you have more than 5 people in your household and then you alone want to pay the premium, it will be expensive.
My household has 18 people. I will have to pay Nu.12,600 yearly. If other members don’t help, it’ll be too expensive for me.
The insurance plan is good. So, it would be my responsibility to convince them to paying their share of yearly policy premium.
What do you think of Drukyul Insurance Plan? Will you insure household yourself or give their own share of premium cost?
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