Direct Purchase Insurance (DPI)


What is Direct Purchase Insurance (DPI)?

Direct Purchase Insurance (DPI) is a class of simple term and whole life insurance products with total and permanent disability (TPD) cover and optional critical illness (CI) rider that you can buy directly from life insurance companies. As DPI are sold without financial advice, no commission is charged and you pay lower premiums than comparable life insurance products. DPI have broadly standardised features which makes it easier to compare products when deciding which DPI to purchase.

DPI are offered by all life insurance companies who cater to retail customers. You may purchase DPI - which can be identified by the prefix “DIRECT” in their product name - from the customer service centres or websites (if available) of the following insurance companies:

  • AIA Singapore Pte Ltd
  • Aviva Limited
  • AXA Life Insurance Singapore Pte Ltd
  • Etiqa Insurance Pte Ltd
  • FWD Singapore Pte Ltd 
  • Great Eastern Life Singapore Pte Ltd
  • HSBC Insurance (Singapore) Pte Ltd
  • Manulife (Singapore) Pte Ltd
  • NTUC Income Insurance Co-operative Limited
  • Overseas Assurance Corporation Limited
  • Prudential Assurance Co. Singapore (Pte) Ltd
  • Tokio Marine Life Insurance Singapore Ltd

Please visit the Life Insurance Association, Singapore website at www.lia.org.sg for the contact information of the insurance companies and a list of the locations where you can purchase DPI.

While DPI have broadly standardised benefits and features, not all benefits and features of DPI are the same across life insurance companies. Please refer to the Fact Sheet on "What other important points should I be aware of" for more information.

Details of the benefits and features of each type of DPI can be found in the tables below.

 Policy Coverage Period

 

Term DPI

Whole Life DPI

Policy Coverage Period
  • 5 years* (renewable)
  • 20 years (non-renewable)
  • Up to age 65 (non-renewable) 
*Total and Permanent Disability1 (TPD) and Optional CI benefits cover up to age 65; Death and Terminal Illness2 benefits cover up to age 85.
Policy coverage of DPI will be up till death of insured or up to a specified maturity age (e.g. 99), except for TPD benefits which will be up to age 65.
Premium Paying Period  Same as Policy Coverage Period
  • Pay up to age 70
  • Pay up to age 85 

 

Benefits 

 

Term DPI 

Whole Life DPI 

Amount of death benefit

100% of sum assured

Applicability of surrender benefit

Not applicable

Applicable 

Amount of TPD benefit
(TPD definitions are standardised across the industry)

100% of sum assured
(TPD benefit)

Amount of optional CI rider benefit
(30 CIs standardised across the industry)

100% of sum assured
(Payout of 10% of the coverage amount of the main policy or S$25,000 whichever is lower, for Angioplasty & Other Invasive Treatment for Coronary Artery)

Minimum and Maximum Sum Assured 

Minimum sum assured

S$50,000

Maximum sum assured

S$400,000 (with a sub-limit of S$200,000 for whole life DPI) with each insurer

Minimum entry age

18

Maximum entry age 

60 or 65 depending on the type of DPI purchased

1TPD means any of two situations:
1) The Life Assured, due to accident or sickness, is disabled to such an extent as to be rendered totally unable to engage in any occupation, business or activity for income, remuneration or profit; and the disability must continue uninterrupted for at least 6 consecutive months from the time when the disability started; and the disability must, in the view of a medical examiner appointed by the company, be deemed permanent with no possibility of improvement in the foreseeable future.
2) The Life Assured, due to accident or sickness, suffers total and irrecoverable loss of use of:
(a) the entire sight in both eyes; or
(b) any two limbs at or above the wrist or ankle; or
(c) the entire sight in one eye and any one limb at or above the wrist or ankle.
 
2Terminal illness is the conclusive diagnosis of an illness that is expected to result in death within 12 months.

How can I purchase DPI?

1. Research 2. Compare 3. Purchase
Do your homework by understanding your own insurance needs.

 

Use the budget and insurance coverage calculators to determine if you can afford the insurance policy and how much coverage you need.
Choose three to four products and compare their features and benefits.

 

compareFIRST.sg is a useful tool that you can use to compare products among different insurers.

 

Read the DPI fact sheet and checklist.
Select the product that best meets your needs.

 

Purchase the product directly from the customer service centres or from the websites (if available) of the applicable insurer.

Identify the insurance company you wish to purchase DPI from and visit its customer service centre or website (if available) to obtain an application form. At the customer service centre, a customer service officer will assist you to complete the application form but not provide any financial advice. You are encouraged to bring along a trusted individual if you meet any two of the following criteria:

a)    are 62 years of age or older

b)    are not proficient in spoken or written English

c)    have below GCE ‘O’ level or ‘N’ level certifications, or equivalent academic qualifications

A trusted individual is someone who:

a)    is at least aged 18;

b)    possesses at least GCE ‘O’ or ‘N’ level certifications, or equivalent academic qualifications;

c)    is proficient in spoken or written English; and

d)    is a person you trust.

If you wish to obtain financial advice, you may approach any of the insurer's sales representatives who are authorised to provide financial advice. However, you may be charged a fee or commission for the advice provided.

When you purchase your DPI, tools such as the Insurance Coverage Estimator and Budget Calculator will be made available by the insurer to assist you in determining your financial needs. A copy of the factsheet and checklist is available here.

Direct Purchase Insurance Fact Sheet

You should read and understand the policy contract and product summary which set out the terms and conditions of the policy, such as the following:

 a)    Coverage Period (for whole life DPI)

Insurers may either set a maturity age (e.g. age 99 or 100) when all benefits would be paid out, or pay the benefits only upon your death or diagnosis of a terminal illness, even if this occurs beyond age 99 or 100.

b)    Premiums for TPD coverage

The coverage for TPD lasts up to a maximum age of 65. The premiums that you pay may change throughout the premium payment period, depending on how the insurers price the TPD coverage.

    (i)    If the TPD coverage is priced separately from the main DPI, the premiums will be reduced once TPD coverage ends after age 65.

    (ii)    If the TPD coverage is priced as part of the main DPI and spread out equally over the entire premium payment period, the premiums will remain the same even though TPD coverage ends after age 65.

c)    Exclusion clauses

Different insurers may have different exclusion clauses which state the situations when benefits under the DPI are not payable. For example, some insurers may not pay out the TPD benefit if the policyholder becomes totally and permanently disabled arising from travel on a non-commercial aircraft. Some insurers may void the policy contract if the policyholder’s death arises from any criminal activity; or an act of war (whether declared or not). You should read the product summary and policy contract to find out what these exclusions are and whether the DPI meets your needs.

You should disclose all information requested in the proposal form (including any pre-existing medical conditions) fully and truthfully. If material information3 is not disclosed, or is falsely disclosed, you or your dependants may not be able to claim the benefits under the DPI. If you are unsure whether the information is material, you are advised to disclose it.

After you submit your application, the insurer will conduct its underwriting. As the terms and benefits of the DPI may change after underwriting, you should consider whether the revised terms and benefits still meet your needs when you receive the policy documents.

3Examples of material information include:
- Whether you are a smoker
- Whether you are currently on any medication or receiving any treatment
- Whether you have any pre-existing medical conditions 

 

DPI at a Glance



 (Click here to view the DPI Infographic above in English)

 (Click here to view the DPI Infographic above in Mandarin)

Introductory Video to Direct Purchase Insurance Products (English)

Introductory Video to Direct Purchase Insurance Products (Mandarin)

Frequently Asked Questions