Where would you find information if you want to purchase a life insurance in Singapore?
If you type “life insurance” in Google, you will likely be overwhelmed by the offers. That is why MAS “forced” all life insurance companies to jointly set up a portal called CompareFirst last year. They think by giving consumer a portal to compare products, they can make better decision and even go to buy insurance directly.
So now every insurer has a new class of insurance called Direct Purchase Insurance (DPI), known as “simple life insurance products” which is sold without commissions and financial advice.
How much direct insurance products were sold last year?
Based on the report from a recent Straits Times article, DPI products drew about S$550,000 in weighted new premiums, with the lion’s share coming from term life plans.
That means if you were to consider $600 average premium for term life insurance, less than 1,000 such policies were bought in the whole Singapore.
Why? We all suffer “information overload” when we want to make financial decisions. Simple life insurance products are not so simple after all.
A life insurance comparison system can do a reasonable job for term life insurance, but will give ridiculous information for other products, especially whole life insurance with “multiplier”.
It took me a while to find out a good website for life insurance, and that is ClearlySurely.com. Not only you can compare life insurance in this website, you will find useful information and discussions about how to choose the right life insurance for yourself. I have no vested interest in this company, but I strongly recommend you to take a look.