Thursday, May 2, 2013

Selling term insurance via online platform in Singapore

Are financial advisers allowed to sell term life insurance to the general public via online platform and without providing advice to the customer?

Term life insurance may be made available online to individuals who wish to buy such insurance, without the need for advice. However, a customer should still seek advice from a financial adviser to supplement term life insurance coverage, or on more complicated insurance plans.

Monetary Authority of Singapore (MAS) takes the view that financial advisers should provide customers with clear and relevant information about the product so as to enable the customer to make an informed decision. 

It should include a prominent warning that:
(a) the client may wish to seek advice from a financial adviser before making a commitment to purchase the product; and
(b) in the event that the client chooses not to seek advice from a financial adviser, he should consider whether the product in question is suitable for him.

Term life insurance refers to life policies written for a specified period, that provide only for death benefits and where the full sum assured is payable upon death by any cause.

[Updated in Mar 12]


1 comment:

  1. I am so happy to read this. This is the kind of ideas that needs to be given and not the random misinformation that is at the other blogs. Thank you for this exclusive record.
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