Monday, April 6, 2015

compareFIRST - What you need to know

compareFIRST - Singapore's first industry-backed life insurance web aggregator is live! 

It is a joint effort by the Monetary Authority of Singapore (MAS), the Life Insurance Association Singapore (LIA), Consumers Association of Singapore (CASE), and MoneySENSE.

It is one of the key initiatives under the Financial Advisory Industry Review (FAIR). You can read more about the background at:

A very comprehensive FAQ is available on compareFIRST's website:

It will be a waste of your time to read (and ours to write) if we were to repeat them here. So here are some key points to clear any confusion/questions that you may have. 

A very important bonus question is right at the end. Read the last question before you even think about using compareFIRST. 


What is compareFIRST?

compareFIRST is an informational portal on life insurance products.

You can compare Direct Purchase Insurance products, term life products, whole life products and endowment products sold by the various life insurers. 

Can I buy life insurance products through compareFIRST?

No. It is only an information portal. So you CAN’T buy products through this site. To purchase any of these products, you should approach your preferred insurer or financial advisor directly.

What are Direct Purchase Insurance Products?

Direct Purchase Insurance (DPI) is a category of life insurance products that you can buy directly from the life insurers. They are available in the form of term life and whole life insurance policies with an option to add a critical illness rider. They can be identified by the prefix “DIRECT” in their product name. 

You do not pay any commissions as these products are sold without financial advice.

DPI is designed for consumers aged 18-65 who do not require financial advice. Approach your preferred insurer directly to purchase DPI. 

But I don't know anything about insurance. How do I know how much sum assured I need or what to make of the different types of products?

Then compareFIRST is NOT for you. No kidding.
It is for people who do not require financial advice - ie knows what they need and knows about insurance. (It is peppered over the site - "people who do not require financial advice, sold without financial advice" etc.)

Or you need to research and read up a lot!
For a start:

It is a great website for people who know what they want, terrible if you do not understand what you are doing. A professional financial adviser or insurance agent is worth paying for. 

As usual, this is for informational purposes only. Go to the compareFIRST's website for details and speak to a financial adviser/insurance agent if in doubt.  


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