No-commission insurance policies available from today
Reuters file photo
SINGAPORE — From today (April 7), consumers can buy basic life insurance policies directly from insurance companies at customer service centres or websites, without going through financial advisers and incurring commissions.
The Direct Purchase Insurance (DPI) initiative, which was implemented by the Monetary Authority of Singapore, comprises term life insurance products with total and permanent disability (TPD) cover; whole life insurance products with TPD cover; and optional critical illness rider attached to term life or whole life insurance products.
An online portal www.comparefirst.sg was also launched to allow consumers to compare insurance products on the market.
compareFIRST was set up by the Life Insurance Association Singapore (LIA), MAS, Consumers Association of Singapore and MoneySENSE. It features five categories of insurance products: Term life insurance, whole life insurance, endowment policies, DPIs, and investment-linked life insurance policies. A dozen insurance companies are listed on the web aggregator, such as AIA Singapore, AXA Life Insurance, Aviva, Great Eastern Life Assurance, NTUC Income and Prudential.
LIA said that its priority is to “help individuals make better informed choices when making their purchase of life insurance products”.
It added: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
