Buying Insurance Without an Agent: Direct Purchase Insurance and compareFIRST

Many people in Singapore assume the only way to buy life insurance is through an agent or financial adviser. That is not the case. Direct purchase insurance in Singapore, usually shortened to DPI, lets you buy simple term life and whole life policies straight from an insurer, online or over the phone, without going through a representative. Paired with the official comparison portal compareFIRST, it gives you a do-it-yourself route for basic protection.

This guide explains what DPI is, how to compare products, what the buying process looks like and where the no-agent route works well or falls short. It is general information, not financial advice. Product features, premiums and rules change, so always check the current policy documents and the official sources named below.

What Direct Purchase Insurance Is

DPI products were introduced with the backing of the Monetary Authority of Singapore (MAS) to give consumers a straightforward, lower-cost option for basic life cover. Life insurers that offer DPI sell these plans directly, without an adviser providing a recommendation, so they are generally priced without the distribution costs built into adviser-sold policies.

The key features to understand:

• Simple product types. DPI covers basic term life and whole life plans. They are standardised and usually come without optional add-on riders.
• No advice by default. You choose the plan yourself. The insurer will explain what the product is, but it is not assessing whether the plan is suitable for your overall finances.
• Sold through insurer channels. You buy via the insurer’s website, customer service centre or other channels it sets up for DPI.
• Same underwriting rules. You still fill in a proposal form and answer health and lifestyle questions honestly. Buying direct does not lower the standard of disclosure.

Coverage limits, which insurers offer DPI and the exact product rules are set out by the insurers and MAS and can change, so check the current details before buying.

Using compareFIRST to Compare Premiums

compareFIRST is a comparison portal run by MoneySENSE, the national financial education programme, together with the Life Insurance Association Singapore (LIA). It lets you compare premiums and features of life insurance products across insurers, including DPI term and whole life plans as well as many adviser-sold products.

A practical way to use it:

1. Decide what you need first. Settle on how much cover you want and for how long. A common starting point is to cover major debts such as a home loan and a period of family living expenses, but your situation decides the number.
2. Pick the product type. Select term life or whole life, and filter for direct purchase products if you want the no-agent route.
3. Enter your profile. Age, gender and smoker status affect premiums, so enter them accurately.
4. Compare like with like. Line up plans with the same sum assured and coverage term. Note whether premiums are guaranteed or can be revised, and whether the term is renewable.
5. Read the product summary. Each listing points to the insurer’s documents. The product summary and policy illustration are where the real detail lives, including exclusions.

Treat compareFIRST as a shortlisting tool. The final contract is the policy wording from the insurer, so always read that before you pay.

How Buying Direct Compares With Other Routes

Route	What you get	Watch out for
Direct purchase insurance (DPI)	Basic term or whole life, bought yourself from the insurer, typically lower distribution costs	No personal recommendation; you must judge suitability and cover amount yourself
Tied agent of one insurer	Advice and products from that one insurer, help with paperwork and claims	Choice limited to one company’s range; costs of advice built into the premium
Financial adviser firm	Advice across several insurers’ products, full needs analysis	Still need to understand how the adviser is paid and what you are being recommended
Fee-based advice then DPI	Paid advice on how much cover you need, then buying direct	Advisory fee is separate; not every adviser offers this model

If you are curious about how agents are trained and paid, our guide to how to become an insurance agent in Singapore gives useful context on the representative side.

Step-by-Step: Buying a DPI Policy Online

The flow varies by insurer, but it usually looks like this:

1. Shortlist on compareFIRST, then go to the insurer’s own website or the DPI page it links to.
2. Get a quote by entering your date of birth, smoker status, sum assured and term.
3. Complete the application, often using Singpass Myinfo to fill in personal details.
4. Answer the health and lifestyle questions truthfully. This is the step people rush, and it is the one that matters most at claim time. If you are unsure what counts, read what to declare when buying insurance before you submit.
5. Wait for underwriting. Some applications are accepted instantly; others may need medical reports, a check-up or further questions. The insurer may accept, accept with an exclusion or loading, or decline.
6. Pay the first premium by the methods the insurer offers, and set up recurring payment.
7. Read the policy documents when they arrive. Life policies come with a free-look period stated in the documents, during which you can cancel and generally get a refund subject to the terms. Use it to check that what you bought matches what you intended.
8. Tell your family that the policy exists, which insurer it is with and where the documents are kept. Consider whether to make a nomination of beneficiaries, following the insurer’s process.

When DPI Works Well and When It Does Not

DPI tends to suit people who:

• Want straightforward term cover to protect dependants during their working years.
• Already know roughly how much cover they need.
• Are comfortable reading product summaries and comparing numbers themselves.
• Want to top up existing cover cheaply.

It can be less suitable when:

• Your finances are complex, for example business owners, people with multiple properties or blended families with estate planning needs.
• You need riders such as critical illness or disability cover packaged into one plan, which DPI products usually do not include.
• You have pre-existing health conditions and would benefit from someone guiding the underwriting process.
• You would rather have one person to call when making a claim.

Remember that DPI is only one part of a protection plan. Singapore Citizens and Permanent Residents already have MediShield Life for large hospital bills, and many people have Integrated Shield Plans or employer group cover on top. Term life is about income replacement, which is a different need. Check what you already have through your existing policies, your employer’s HR and the CPF Board’s information on national schemes before buying more.

Common Mistakes to Avoid

• Buying on premium alone. The cheapest plan with the wrong term or too little cover is not a bargain.
• Skipping the disclosure questions. Non-disclosure can lead to a claim being rejected or the policy being voided.
• Forgetting about renewal. Some term plans can be renewed at higher premiums; others simply end. Know which you have.
• Cancelling old cover too early. Do not stop an existing policy until the new one is in force and you understand what you lose by surrendering the old one.
• Not keeping records. Save the policy documents and tell someone you trust where they are.

For the official background, read the DPI and life insurance pages on MoneySENSE, use compareFIRST for comparisons, and refer to the insurer for policy-specific questions. If you decide you would rather have advice after all, a licensed adviser can still help, and nothing stops you combining both approaches.

Official sources: Monetary Authority of Singapore (MAS)

Further reading: What Happens to Your Policies When Your Insurance Agent Quits · Can You Still Buy Insurance After 60 in Singapore? · How the Free-Look Period Lets You Cancel a New Insurance Policy