Thursday, June 9, 2016

Buying Direct Purchase Insurance (DPI)

What is Direct Purchase Insurance (DPI) and what are the differences? Well, if you want a simple, cheap insurance with a very basic rider, then DPI is for you. If you want to be assured for $1 mil and have your policy zhnged with every rider possible, then this is probably not for you.

I think as most people know, I have a stubborn view on insurance and I am not a big fan of most insurance agents. I say most, because I know that there are some who are really good and there are also some who feel morally obliged to try and sell term even though they know that most consumers are stupid are will prefer life instead. I recently met an insurance agent who tried to sell term to her client, who is the PERFECT candidate for term insurance (middle income, sole breadwinner, family with very young dependents), but ended up getting rejected and scolded for offering such a "dumb" plan with no cash value back.

Hokay. No cash value insurance is de sux horz. Whatever. Your money, your call. It could be a bad call, but it is your call to make.

Anyway, I digress. Most of you are here to find out how I bought my DPI, so here we go.

It was pretty simple. I logged onto comparefirst, punched in my data and clicked search. Male, non-smoker, $100k term life, $100k CI. Boom.

The results are plain and simple to see. Okay, good place to start. Now, what about DIYinsurance? I've heard a lot about them and the commission rebate, so I thought, hey why not give them a chance and see how expensive it is?

To their credit, they were fast. Within a day I got a response and also a quote. It was $393. Even with the commission rebate, I'm sure we aren't looking at a final price of under $300, so meh. Okay, thanks. Bye.

For the DPI insurers, I went to figure out what is the application process and for more information. Great Eastern requires the person to physically go to them. Same for HSBC. I didn't want Aviva because I'm already covered by them with SAF GTL and I'm trying to diversify.

Aviva ($320): Expensive, same insurer as my group policy
HSBC ($300): Poor information, call them up, required to go down
GE ($241): Probably the worst insurer in Singapore for follow up (see claims returns rate), required to go down

AXA ($286): Simple website, NOT required to go down

Okay, there we go, AXA is the winner. I confirmed with them that I would not be required to go down to submit my documents and sign stuff (unless medical is required), and basically after that everything was done by email and phone. Here's the timeline:

D-Day: Filled up webform

D+1: Contacted by AXA for personal details, checked that I don't have to visit them, and then received BI and other documents on the same day.

D+3: Took 1 full day to look over the documents and decide on doing it, so next day finally sent back draft documents for the AXA guy to check. Received reply regarding what things I missed out. Awesome.

D+5: Finally got the time to post out the documents.

D+21: Received a call from AXA guy regarding 1 follow up document required. An email with the extra document needed was sent to me.

D+24: Finally got the time to post out the final document.

D+42: Received an email and SMS from AXA saying that my application is approved.

D+51: Received my all policy documents in the mail, nicely binded up.

The process was simple and easy. It probably could've been faster if I wasn't so lazy by doing everything through mail. The process only involved me printing forms, filling it up and sending it off, and that was it. No visits to their office or branches during working hours (seriously, who has the time to do these kind of things?) and no weird medical exams. Probably cos I am young and healthy.

For people that know what they want, you would be hard pressed to find insurance that is as cheap and simple to get as the AXA DPI. I can't speak for the rest of the other DPI insurers, but I am quite pleased with my experience with AXA.

Does anyone else have DPI insurance? How was your process like?


  1. thank you for sharing your experience. I am in the process of buying a DPI term life insurance myself (also from AXA). So far the customer call responds quickly and clearly (more so than most insurance agents I know). I did ask the customer call, what about claim? will it take longer /more troublesome to make a claim through head office / customer call instead of through an agent? they said it should not be. i asked whether they could share some statistics on claim processing time or success rate (for CI claim), still waiting for reply (not sure they will share).
    once again thanks for sharing your tips, experience, and rants through this blog.
    i'm very un-savvy financially, but recently I got fed up with some financial agents and I thought as a relatively intelligent and educated person I should be able to handle my financial planning by myself.

    1. Hi Anatasia,

      I think just by you exploring about DPI and the process, you have probably become a master about your own insurance requirements and what are available in the market! From what I understand, there really isn't much of a difference when making a claim. The main difference would be who fills out your claim, in which case, having an agent do it for you would make them an extremely expensive form filler. I would rather do it myself or get my relatives to do it for me! All the best with your insurance!


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