DPI Insurance for CI?

One of the cheapest DPI Terms: GE Direct Term + E(CI) Rider

expiry age @ 65
sum assured for death/tpd @ 250k till age 65
sum assured for E(CI) @ 250k till age 65
premiums @ 452/yr for 40 years = 18k total

The cheapest whole life sold by agent: Manulife

expiry age @ 70
sum assured for death/tpd @ 250k before age 70, 50k after age 70
sum assured for E(CI) @ 250k before age 70, 50k after age 70
premiums @ 2.1k/yr for 25 years = 53k total

The cheapest term lifes for just E(CI) sold by agent:

Aviva Multipay

expiry age @ 65
sum assured for E(CI) @ 100k (but can pay multiple times with a number of T&C) till age 65
premiums @ 849/yr for 40 years = 34k total

Aviva My Early CI

expiry age @ 65
sum assured for E(CI) @ 250k till age 65
premiums @ 745/yr for 40 years = 30k total

Looking at the above, I understand this isn't comparing apple-to-apple but DPI still looks way more worth it than WL and TL sold by agents for 250k CI coverage (even comes with Death/TPD), even if the CIs covered for those sold by agents over 37 while DPI covers only 30 (these 30 make up 95% of all claims anyway). I can make the claims myself if need be. So clearly I should go for DPI for CI right?

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Elijah Lee

08 Sep 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

You might want to check again. Direct Purchase Insurance is broadly standardized and has no Early CI coverage. As you pointed out, even the scope of CI cover for DPI is limited to 30 CIs and not the standard list of 36 CIs as listed by LIA.

It's definitely not an apple to apple comparison between WL and term, but try running a term beyond age 70 and quite often, a WL is actually more cost efficient.

Try running quotes for late CI only WL plans and the equation changes significantly.

Lastly, on claims.

Angioplasty on DPI will reduce the sum assured. On WL plans, Angioplasty is often listed as a special benefit and does not impact main sum assured.
The 6 missing CIs (Apallic Syndrome, Loss of Independent Existence, Other Serious Coronary Artery Disease, Poliomyelitis, Progressive Scleroderma, Systemic Lupus Erythematosus with Lupus Nephritis) are not what I would call rare either, especially Other Serious Coronary Artery Disease which DOES NOT require any surgery to have been performed (positive diagnosis is sufficient for claims), whereas the other 2 CAD related claims require some form of surgery or invasive procedure to have been performed first before a claim. I don't know about you, but I'd very much like to be able to claim if my heart condition turned out to be serious, but not serious enough to warrant immediate surgical intervention
You're missing out on a lot of other claims that are possible on a non DPI plan such as special benefits.

It's definitely not as straight forward as taking the cheapest option.

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