Note: It was announced in November 2023 that MoneyOwl will be acquired by Temasek Trust to serve communities under a re-purposed model, and will move away from direct sale of financial products. The article is retained with original information relevant as at the date of the article only, and any mention of products or promotions is retained for reference purposes only. 

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Understanding and considering critical and important differences before purchasing DPI

Under the Financial Advisory Industry Review (FAIR) by the Monetary Authority of Singapore (MAS), the MAS has launched initiatives to create a more competitive market for insurance products and empower consumers to make informed decisions through better access to information.

The launch of web aggregators allows consumers to compare the premiums and features of life insurance products. Comparison platforms are set to revolutionise the insurance industry in Singapore with web aggregators already popular in the United Kingdom and Australia.

We share with you how our Web Portal can help you plan, compare and save on your life insurance needs. With the introduction of Direct Purchase Insurance (DPI), it is important for you to understand and consider critical and important differences before purchasing DPI with this article.

1. Comparing a Wide Variety of Products

On top of term life and whole life plans, we compare stand-alone Critical Illness, Disability Income, Long Term Care and Annuities for retirement income. The wide variety of products available on the comparison web portal means you are able to find the product which best suits your needs. You can purchase your insurance needs from this one-stop-shop with us.

2. Premium Savings

2a) 50% Commission Rebates* and Promotions

In addition to ongoing promotions which could significantly reduce your cost, MoneyOwl provides 50% commission rebates* back to all consumers in cash when you purchase any product through us and that means greater cost savings to you.

2b) No limits to the amount of Insurance Coverage

A person will easily need $700,000 to more than $1million of life insurance coverage. How do you calculate this? Read more for an illustration of a life insurance calculation. This is to sufficiently provide for our dependents’ livelihood on our unfortunate demise. Not having sufficient coverage means our dependents may have trouble paying off our housing loan, education fees and to maintain their lifestyle without an income.

Assuming an example of the following profile:

• 30-year-old, Male
• Requires $500,000 of life insurance coverage (with no critical illness benefit) up to 65 years old

Option 1: The most cost-efficient way of providing for this coverage is to purchase…

Option 2: Making your full-purchase on your own from Direct Purchase Insurance products will incur the following cost

 

Cost Savings buying through MoneyOwl:

• $44 per year + $55 in commission rebates*

*Data as of 8 April 2015

This shows that for any coverage which is above $400,000, buying through MoneyOwl will be the most cost-efficient method. There are a cost savings of $44 in annual premiums together with $55 of total commission rebates.

• $633 in annual premiums for the first calculation versus
• $677 of buying through the Direct Purchase Insurance channel

Furthermore, this provides you with great convenience. Instead of going to 2 or more insurers to purchase insurance products, you can fulfill your insurance needs just by coming to us.

3. Service Level

3a) Professional and Friendly Client Service Managers

Client Service Managers from MoneyOwl will assist clients in finding out their needs as well as provide the relevant recommendations through fact-finding. Our warm Client Service Managers will ensure your queries are taken care of and inform you of any areas you may have overlooked.

3b) Independent and Transparent

All client advisers from MoneyOwl are salaried based. Not being remunerated on a commission-basis means we are independent and can focus on doing our best to fulfill your needs. There is no hard-selling and no over-selling. We are transparent with every product’s commission’s structure so that you know exactly what you are paying premiums for.

3c) Claims

Making a claim on your insurance policy can be a very tedious process with many questions and uncertainties, especially in the area of determining whether you are eligible for a claim. Having an expert to advise you is always helpful. We offer our assistance when you need to claim on your insurance.

4. Rating System

The MoneyOwl rating system helps you find the product which is of the best value that suits your needs. Our Specialist Consulting Group with expertise in insurance knowledge, compilation, analysis, comparisons, updates, and research products distributed by insurance companies based on features and price. These assets take into account the return of savings for endowment products. Based on the product’s value, it is converted to the number of stars as displayed in the comparison platform.

5. Differences between DPI and Non-DPI Products

5a) Total Permanent Disability claim definition

This means non-DPI products are more flexible when claiming total permanent disability (TPD).

5b) Difference in the number of Critical Illness Definitions

This means non-DPI products have a wider range of critical illnesses which we can claim for.

*Please refer to our FAQ on how rebates work.