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Compare & Save on Life Insurance and Key Differences of Direct Purchase Insurance (DPI)


Article Author - DIYInsurance
By DIYInsurance
Apr 08, 2015

Singapore's First Life Insurance Comparison Web Portal

Under the Financial Advisory Industry Review (FAIR) by the Monetary Authority of Singapore (MAS), the MAS has launched initiatives to create a more competitive market for insurance products and empower consumers to make informed decisions through better access to information.

The launch of web aggregators allows consumers to compare the premiums and features of life insurance products. Comparison platforms are set to revolutionise the insurance industry in Singapore with web aggregators already popular in the United Kingdom and Australia.

We share with you how DIYInsurance (Do It Your way Insurance), Singapore's First Life Insurance Comparison Web Portal can help you plan, compare and save on your life insurance needs. DIYInsurance has been featured on The Straits Times, The Edge, Lianhe Zaobao, Gold 90.5 FM and Kiss 92 FM. And with the introduction of Direct Purchase Insurance (DPI), it is important for you to understand and consider critical and important differences before purchasing DPI with this article.


1. Comparing a Wide Variety of Products

On top of term life and whole life plans, DIYInsurance compares stand-alone Critical Illness, Disability Income, Long Term Care and Annuities for retirement income. The wide variety of products available on the comparison web portal means you are able to find the product which best suits your needs. You can purchase your insurance needs from this one-stop shop with DIYInsurance.



2. Save more with DIYInsurance


50% Commission Rebates and Promotions

In addition to ongoing promotions which could significantly reduce your cost, DIYInsurance provides 50% commission rebates back to all consumers in cash when you purchase any product through DIYInsurance for greater cost savings to you.


No limits to amount of Insurance Coverage

A person will easily need $700,000 to more than $1million of life insurance coverage. An illustration of a life insurance calculation can be found in this article. This is to sufficiently provide for our dependents' livelihood on our unfortunate demise. Not having sufficient coverage means our dependents may have trouble paying off our housing loan, education fees and to maintain their lifestyle without an income.


Assuming an example of the following profile:

A 30 year-old Male
Requires $500,000 of life insurance coverage (with no critical illness benefit) up to 65 years old


The most cost-efficient way of providing for this coverage is to purchase

No.

Product

Insurance Coverage ($)

Cost (Annual premiums) ($)

Total Commission Rebates ($)

Annual Premiums ($)

1

AXA Life Term Protector

500,000

633 (Quoted by DIYInsurance)

55 (From DIYInsurance)

633

 

Total

500,000

 

55

633


Making your full-purchase on your own from Direct Purchase Insurance products will incur the following cost:

No.

Product

Insurance Coverage ($)

Cost (Annual premiums) ($)

Total Commission Rebates ($)

Annual Premiums ($)

1

DIRECT-AXA Term Lite

400,000

490 (Quoted on comparefirst)

0

490

2

DIRECT-Z Basic

100,000

187 (Quoted on comparefirst)

0

187

 

Total

500,000

 

0

677

Cost Savings buying through DIYInsurance:
$44 per year + $55 in commission rebates


This shows that for any coverage which is above $400,000, buying through DIYInsurance will be the most cost-efficient method. There is a cost savings of $44 in annual premiums together with $55 of total commission rebates. ($633 in annual premiums for the first calculation versus $677 of buying through the Direct Purchase Insurance channel).

Furthermore, this provides you with great convenience. Instead of going to 2 or more insurers to purchase insurance products, you are able to fulfill your insurance needs just by going to DIYInsurance.



3. Service Level


Professional and Friendly Client Service Managers

Client Service Managers from DIYInsurance will assist clients in finding out their needs as well as provide the relevant recommendations through fact finding. Our warm Client Service Managers will ensure your queries are taken care of and inform you of any areas you may have overlooked.


Independent and Transparent

All staff from DIYInsurance are salaried based. Not being remunerated on a commission-basis means we are independent and are able to focus on doing our best to fulfill your needs. There is no hard-selling and no over-selling. DIYInsurance is transparent with every product's commission’s structure so that you know exactly what you are paying premiums for.


Claims

Making a claim on your insurance policy can be a very tedious process with many questions and uncertainties, especially in the area of determining whether you are eligible for a claim. Having an expert to advise you is always helpful. We offer our assistance when you need to claim on your insurance.



4. DIY Rating


The DIYInsurance rating system helps you find the product which is of the best value that suits your needs. Our Specialist Consulting Group with expertise insurance knowledge, compiles, analyses, compares, updates and research products distributed by insurance companies based on features and price. This assets taking into account of return of savings for endowment products. Based on the product’s value, it is converted to the number of stars as displayed in the comparison platform.



5. Differences between DPI and Non-DPI Products


Total Permanent Disability claim definition

 

Buying through Direct Purchase Insurance (DPI) channel

Buying through DIYInsurance

TPD claim definition

Total and irrecoverable lost of use of any 2 of 6 limbs namely, the eyes, legs above ankles and hands above wrist.

Total and irrecoverable lost of use of any 2 of 6 limbs namely, the eyes, legs above ankles and hands above wrist;
OR
Inability to perform any 2 or 3 Activities of Daily Living, namely, Transferring, mobility, toileting, dressing, washing, feeding.

This means non-DPI products are more flexible when claiming for total permanent disability (TPD).




Difference in the number of Critical Illness Definitions

 

DPI products

Non-DPI products

No. of Critical illness definitions

30

30 to 37 or more

This means non-DPI products have a wider range of critical illness which we can claim for.



Disclaimer

This presentation represents the house view of DIYinsurance and Providend Ltd and is intended for information and illustration purposes only. It should not be construed as a recommendation to buy or sell any product and do not purport to represent or warrant the outcome of any particular investment strategy, program or product. It has been prepared without consideration to the specific investment objective, financial situation and particular needs of any specific person or persons. References to individuals, individual companies or any financial instrument or investment product is for illustration purposes only and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters. Past performance of any fund manager, insurer, insurance product, financial instrument, investment product, the economy, stock markets, bond markets, economic trends or any forecasts made are not necessarily indicative of the future performance of the same. An investment in collective investment schemes, funds or other investment products is subject to varying investment risks, including the possible loss of the principal amount invested. You should seek specific advice from your adviser where applicable.
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DIYInsurance (Do It Your-way Insurance) is Singapore's First Life Insurance Comparison Web Portal started in June 2014 by Providend Ltd to empower people to make informed decisions about their own insurance purchases. In addition to ongoing promotions, we rebate 50% of the agent’s commissions back to our clients so that they enjoy greater cost savings.


The Trusted Place to be Insured

MAS-licensed since 2003 | Expert advisers to assist you | Advisers not commission-based | Dedicated after-sales service | Secure and easy process


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