Term insurance - buy directly

Many consumers find it difficult to buy Term Insurance directly in Singapore. When they call the hotline of the insurance company, their case is passed to an agent who quotes them an unrealistic high price for term insurance and pushes Investment Linked Policies or Critical Illness policy as a consumer, giving misleading advice that these savings policies give better value (which they do not!).

If you insist and do get a quotation for Term Insurance, you can compare it with the rates quoted in this website, which offers the term insurance in America. I am not suggesting that you buy from America, as there are other issues that you need to consider. But, at least you can find out if the rate for Term Insurance quoted in Singapore is fair.

For example, in my website, I gave a "benchmark" premium of $541 for a male age 30 insuring $200,000 for 20 years. If you find a better offer from a Singapore company, it is acceptable. However, if you are offered a much higher premium, you know that the agent is trying to mislead you with an unrealsitic quote.

I tried the above website and found rates (for a non-smoker in regular good health) to range from $327 to $506 for the 9 companies listed. So, it is possible to get lower premium compared to my "benchmark".

Tan Kin Lian