As you reach certain milestones in life (i.e. having dependants), you may need to have some form of temporary financial protection in place to safeguard from unfortunate instances that can cause a strain on your finances that provide for your family or your loved ones.
This is where a whole life insurance, term life insurance, or even a direct purchase insurance comes to play.
But why are we specifically bringing up direct purchase insurance (DPI) in this post?
This is because direct purchase insurance (DPI) can essentially provide you with just that – the temporary financial protection you need for lower premiums as compared to whole life insurance and even term plans you buy from your agent!
It is also a great short-term solution to supplement your existing coverage if you deem them insufficient.
So without further ado, let’s move on to talk about direct term life insurance plans and how you can pick the best one for your needs.
What are direct purchase insurance plans (DPI)?
Direct purchase insurance plans (DPI) are term life insurance plans that you directly purchase through the insurer online or in-person without going through intermediaries such as financial advisors or insurance agents.
Essentially, it is the same as term life insurance, where they offer protection for a fixed time period and payout if death, terminal illness, or total and permanent disability occurs within the period insured – the only difference is in the way you acquire the insurance plan.
Most DPI plans also last between 5 to 40 years, or up to a certain age (e.g 65 or 100).
They can also be either renewable or levelled, depending on your preference.
The former starts with a low premium and increases yearly, and renews each year as you pay your premiums.
As for the latter, premiums will be slightly higher in the beginning but stays the same throughout the policy.
However, direct purchase term plans are usually cheaper than term plans that you get from agents as they remove the need for a middleman!
Who are Direct Purchase Insurance plans best for?
If direct purchase insurance is cheaper, why would someone buy a term plan from a financial advisor?
The reason why someone would buy a term plan from a financial advisor is if they don’t how much life insurance coverage they need, they need riders such as ECI/CI, or they will require someone to assist with claims.
Firstly, if you don’t know how much life insurance you need, then a financial advisor can help you with this.
However, you can always learn to calculate your life insurance needs and purchase DPI by yourself.
Next, you should choose an FA to get your term plans from if you need riders such as early critical illness and critical illness protection.
ECI/CI riders on DPI plans are usually unavailable or not as comprehensive as those offered via a financial advisor.
Lastly, should you (touchwood!) be diagnosed with a terminal illness, total and permanent disability, or pass on, then a financial advisor can assist your family with the claims needed.
For DPI plans, you family must learn the claims process and make the claims themselves.
Do note that any mistakes might lead to delays in the insurance payouts.
Direct Purchase Insurance Plans in Singapore
Here, we discuss DPI plans from leading insurers in Singapore which include:
- FWD Term Life Plus ($100k, $250k, $500k, $750k, $1m, $1.5m)
- NTUC Income Star Term Protect ($150k – $499k)
- NTUC Income TermLife Solitaire ($500k – $20m)
- Great Eastern DIRECT – GREAT Term (DIRECT – GREAT LIFE II 70, GREAT LIFE II 85, GREAT TERM (Up to age 65), GREAT TERM (20 Years), GREAT 5YR TERM) ($50k – $400k)
- Etiqa Direct Purchase Term Life Insurance ($200k, $500k, $999k)
- Singlife Direct Purchase Term Life Insurance ($50k – $400k)
Okay, I’ve got to disclaim that both NTUC Income’s plans – Star Term Protect and TermLife Solitaire – are not direct purchase plans.
However, I added them in as you could purchase them from NTUC Income direct, which is pretty similar to how a DPI plan works.
Also, you’ll know why we added them in when you see our selections.
Cheapest Direct Purchase Insurance Plan – FWD Term Life Plus
This comparison is based on the annual premiums for a fixed plan tenure of 5 years (except NTUC Income TermLife Solitaire, which starts at 10 years) and the lowest sum assured for the individual plan.
| DPI Plans | Sum Assured | Annual Premiums for a 25-year-old non-smoker male |
| FWD Term Life Plus | $100,000 | $45.50 |
| NTUC Income Star Term Protect | $150,000 | $115.40 |
| NTUC Income TermLife Solitaire | $500,000 | $153.45 |
| Great Eastern DIRECT – GREAT Term (GREAT 5YR TERM) | $50,000 | $47.50 |
| Etiqa Direct Purchase Term Life Insurance | $200,000 | $67.20 |
| Singlife Direct Purchase Term Life Insurance | $50,000 | $30.50 |
From the table above, you can see that Singlife Direct Purchase Term Life Insurance Plan offers the cheapest premium amongst the rest at $30.50.
However, its sum assured amount lies low at $50k as compared to other insurers like NTUC Income, FWD, or Etiqa.
Just by topping up $15, you can easily acquire a DPI plan with twice the sum assured of $100k – as provided by FWD Term Life Plus.
Overall, you’re still paying a pretty affordable price for a significantly higher amount of sum assured.
Plus, signing up for FWD’s DPI plan will give you access to its FWD Care Recovery Plan, its complimentary support program that goes beyond paying a claim during times of need.
FWD also offers 25% off with the promo code “LIFE25”. Plus if you purchase a Term Life insurance from now till 31 December 2023, you will get 50% off* your next life insurance with them! *Discount applies to first-year premium only.
Sounds like a win-win situation to me.
Best Direct Purchase Insurance Plan for Highest Sum Assured – NTUC Income TermLife Solitaire
| DPI Plans | Highest Sum Assured |
| FWD Term Life Plus | $1,500,000 |
| NTUC Income Star Term Protect | $2,000,000 |
| NTUC Income TermLife Solitaire | $20,000,000 |
| Great Eastern DIRECT – GREAT Term | $400,000 |
| Etiqa Direct Purchase Term Life Insurance | $999,000 |
| Singlife Direct Purchase Term Life Insurance | $400,000 |
NTUC Income TermLife Solitaire wins this category hands down.
Offering up to a sum assured of up to $20 million? That’s just insane.
However, we want to bring up that NTUC Income TermLife Solitaire is catered more towards those with higher financial capabilities, as their premiums can be pricier.
What’s more– if your minimum sum assured is at $3 million and above, you will get a complimentary one-time concierge service to arrange a full medical check-up.
As you can see, the highest DPI is actually FWD’s term plan with up to $1.5 million in coverage. To most, this will more than suffice.
But there are individuals who would want more than $1,500,000 in coverage, with NTUC Income’s TermLife Solitaire offering you up to $2 million.
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Best Direct Purchase Insurance Plan for Longest Coverage Period – NTUC Income TermLife Solitaire
| DPI Plans | Maximum Coverage Period (Age last Birthday) | Age Eligibility (Age last Birthday) |
| FWD Term Life Plus | Fixed Term: Minimum of 5 years or any number of years up to a maximum of age 70. Renewable Term: One year (can be renewed yearly up to age 100). | 18 – 60 |
| NTUC Income Star Term Protect | Between 5 & 35 years, in multiples of 5 years * *Subject to the maximum coverage age of up to age 84 (last birthday) Up to age 54 Up to age 64 Up to age 74 | Up to age 79 Up to age 49 Up to age 59 Up to age 69 |
| NTUC Income TermLife Solitaire | 10, 15, 20, 25 years or until up to age 64, 74, 84, or 100 30 35 40 Up to age 64 Up to age 74 | 18 – 74 18 – 70 18 – 65 18 – 60 18 – 54 18 – 64 |
| Great Eastern DIRECT – GREAT Term | 20-year term plan or until up to age 65 or a 5-year renewable term plan. | Above 18 |
| Etiqa Direct Purchase Term Life Insurance | 20-year term plan or until up to age 65 or a 5-year renewable term plan. | 19 – 65 |
| Singlife Direct Purchase Term Life Insurance | 20-year term plan or until up to age 65 or a 5-year renewable term plan. | 19 – 65 |
Once again, NTUC Income TermLife Solitaire emerges as the winner for yet another category and for obvious reasons– it offers the longest coverage period of up to age 100!
Although we can see that FWD Term Life Plus also offers coverage up to age 100, its age eligibility is only from age 18 to 60 as compared to NTUC Income’s age eligibility of 18 to 74.
Not to mention, getting NTUC Income TermLife Solitaire means you get instant excess to exclusive privileges with NTUC Income’s SolItaire Club, such as dining and spa services at The Fullerton Hotel Singapore!
This can certainly is the icing on the cake if you’re considering that as your choice of direct insurance plan.
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Best Direct Purchase Insurance Plan with Best Optional Rider/Enhancement Add-Ons – NTUC Income Star Term Protect
| DPI Plans | Optional Rider Add-On(s) | Benefits |
FWD Term Life Plus | Total and Permanent Disability (TPD) | Up to $1.5 million of TPD coverage |
| Critical Illness (CI) | Up to $1.5 million of CI coverage | |
| Waiver of Premium | Continue to enjoy life insurance coverage without paying subsequent premiums in the event you are unable to work due to a TPD or CI. | |
| NTUC Income Star Term Protect | Hospital CashAid | Provides payouts in the event of hospitalisation to help reduce your out-of-pocket expenses. With the Major Impact Benefit, you will also be covered against future unknown diseases or serious infections if you undergo surgery or suffer from an infection and you need to stay in an Intensive Care Unit (ICU) for 5 days or more at a go. |
| Essential Protect | You will receive the sum assured for this rider in the event of death, total and permanent disability (TPD before age 70), terminal illness or diagnosis of dread disease (except for angioplasty and other invasive treatment for coronary artery) during the term of the rider. | |
| Total Protect | You will receive the sum assured for this rider upon diagnosis of early, intermediate, or advanced stage specified dread diseases (except angioplasty and other invasive treatment for coronary artery) during the term of the rider. The rider also provides Advanced Restoration Benefit, which offers extra coverage for stroke with permanent neurological deficit, major cancer, and heart attack of specified severity after an early or intermediate stage dread disease claim is made. | |
| Payor Premium Waiver | (Only applicable if the insured is not the policyholder) You will not need to make future premium payments for the basic policy that you have bought for a loved one if you pass away or are totally and permanently disabled (TPD before age 70) during the term of the rider. | |
| Enhanced Payor Premium Waiver | (Only applicable if the insured is not the policyholder) You will not need to make future premium payments for the basic policy that you have bought for a loved one if you pass away, are totally and permanently disabled (TPD before age 70), or are diagnosed with a dread disease (except for angioplasty and other invasive treatment for coronary artery) during the term of the rider. | |
| Dread Disease Premium Waiver | You will not need to make future premium payments for your basic policy if you are diagnosed with a dread disease (except for angioplasty and other invasive treatment for coronary artery) during the term of the rider. | |
NTUC Income TermLife Solitaire | Disability Accelerator | You will receive the sum assured under this rider upon diagnosis with total and permanent disability (TPD before the anniversary of the policy immediately after age 70) during the term of the rider. |
| Total Protect | Same as above. | |
| Hospital CashAid | Same as above. | |
| Payor Premium Waiver | Same as above. | |
| Enhanced Payor Premium Waiver | Same as above. | |
| Dread Disease Premium Waiver | Same as above. | |
| Great Eastern DIRECT – GREAT Term | DIRECT- GREAT Critical Care | Protection against 30 critical illnesses. |
| DIRECT – GREAT 5yr Critical Care Rider | ||
| Etiqa Direct Purchase Term Life Insurance | Etiqa CI Rider | Protection against 30 critical illnesses, up to $400,000 sum insured. |
| Singlife Direct Purchase Term Life Insurance | Singlife CI Rider | Protection against 30 critical illnesses, up to $400,000 sum insured. |
There are 2 DPI plans that offer 6 optional rider add-ons (the most number of riders), and they are both from NTUC Income.
Since the only underlying difference between their riders is the Essential Protect rider for NTUC Income Star Term Protect and the Disability Accelerator rider for NTUC Income TermLife Solitaire, let’s lay them out for comparison.
| Plan | NTUC Income Star Term Protect | NTUC Income TermLife Solitaire |
| Rider | Essential Protect | Disability Accelerator |
| Benefit | You will receive the sum assured for this rider in the event of death, total and permanent disability (TPD before age 70), terminal illness or diagnosis of dread disease (except for angioplasty and other invasive treatment for coronary artery) during the term of the rider. | You will receive the sum assured under this rider upon diagnosis with total and permanent disability (TPD before the anniversary of the policy immediately after age 70) during the term of the rider. |
Given that Essential Protect also gives a payout for the event of death, terminal illness, or dread disease diagnosis, we would have to go with NTUC Income Star Protect as the chosen DPI plan with the more attractive rider options.
The good news is that NTUC Income is now offering up to a 3% discount on your first-year premium for this plan and up to a 20% discount on your first-year premium on any rider you decide to add on!
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Most Value Direct Purchase Insuranace Plan – Etiqa Direct Purchase Term Life Purchase
This comparison is based on the annual premiums for a fixed plan tenure of 20 years and the lowest sum assured for the individual plan.
| DPI Plans | Sum Assured | Annual Premiums for a 25-year-old non-smoker male | Cost-to-benefit ratio |
| FWD Term Life Plus | $100,000 | $70.90 | 1,410.44 |
| NTUC Income Star Term Protect | $150,000 | $116.15 | 1,291.43 |
| NTUC Income TermLife Solitaire | $500,000 | $210.30 | 2,377.56 |
| Great Eastern DIRECT – GREAT TERM (20 Years) | $50,000 | $45.00 | 1,111.11 |
| Etiqa Direct Purchase Term Life Insurance | $200,000 | $73.56 | 2,718.87 |
| Singlife Direct Purchase Term Life Insurance | $50,000 | $33.80 | 1,479.29 |
In terms of cost-to-benefit ratio, Etiqa Direct Purchase Term Life Insurance ranks the highest amongst the rest.
And it is clear why.
It offers a relatively mid-tier sum assured amount of $200,000 while still paying affordable premiums of less than $100.
For every dollar you pay, you get $2,718.87 in coverage!
Plus, this DPI plan can allow you to get up to $1.5 million of coverage without needing a medical check if you are under the age of 40 and in the pink of health.
And if a medical check is required, Etiqa bears the cost of it for you.
It also offers an attractive option of enhancing your coverage with a Critical Illness Rider, where you get protection against 30 critical illnesses and up to $400,000 insured.
Use code: R303586 for discounts!
Conclusion
So there you have it– the 5 best DPI plans in the market laid out for your perusal.
And when we say best, we mean that it ranks the highest in a specific category.
Remember that no specific DPI plan can be considered the best, and it depends on your needs and what you deem a priority.
Ultimately, you must also keep in mind that term insurance plans are here to provide you with temporary financial protection for a fixed amount of time– simply at a cheaper rate.
Plus, it should only be viewed as a short-term solution to supplement your existing coverage if you deem them insufficient.
If you don’t want to go through the hassle and making the mistake of calculating your needs or trouble yourself and your family in making DPI claims, then perhaps choosing a non-direct term life insurance plan might be better.
Know of someone struggling to pick a direct purchase term life insurance plan for themselves? Send this article their way!
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