Can you buy all the insurance you need without a financial representative/agent?

Today, we can buy many types of insurance policies online, without ever needing to meet a financial representative (commonly called an insurance agent).

But, is it realistically possible to build a complete insurance portfolio by yourself?

The short answer: you can buy a lot, but perhaps not everything

In Singapore, a do-it-yourself insurance portfolio can potentially cover:

• death and total and permanent disability
• critical illness
• accidents
• long-term care
• travel
• your home
• your car
• a domestic helper
• selected savings goals

However, what you can or cannot buy by yourself depends on the insurance company. Take an Integrated Shield Plan (IP) for example.

An IP plan is often one of the most important parts of your healthcare coverage. While all Singapore Citizens and Permanent Residents are covered by MediShield Life, an IP adds private insurance for higher ward classes or private hospitals.

There is no general rule saying IPs must always be sold with advice. But because IPs involve medical underwriting, ward choices, riders, deductibles, and long-term affordability (since premiums rise as you age), many insurers (but not all), keep a financial representative involved in the application process.

Your representative is also supposed to provide support to you after the policy is purchased, such as explaining policy changes, helping you understand the claims process and guiding you on the documents required.

This matters because hospital cash, personal accident and critical illness policies do not replace an IP. They cover different financial risks.

What to do before buying insurance by yourself

Before buying any insurance policy, you should always look at what protection you already have in place.

Depending on your eligibility and circumstances, this may include:

• MediShield Life
• CareShield Life
• the Dependants’ Protection Scheme
• insurance provided by your employer
• personal policies bought previously

Your aim should not be to buy one of every type of insurance. Instead, identify potential events that could cause a serious financial crisis, then check if you have enough coverage for them.

For example, your employer may provide life and medical benefits. However, that coverage may end when you leave the company. MediShield Life helps with large hospital bills, but its benefits are designed around subsidised treatment in public hospitals.

Knowing what you already have helps you avoid buying duplicate benefits while leaving a more critical risk uncovered.

This information-gathering exercise is also what a financial representative is supposed to do before recommending a policy. They should review your existing coverage, identify gaps or overlaps and help you decide which needs should take priority.

What insurance can you commonly buy by yourself?

While there is no single list that applies across every insurer in Singapore, the following types are commonly available through direct or online channels.

Travel, home, motor and maid insurance

These policies usually cover a clearly defined person, item or period.

Because these plans tend to come in several pre-set coverage levels, they are relatively easier to compare.

Do remember: the cheapest plan may not provide the coverage you need. Buying a policy may take five minutes, but understanding the exclusions takes longer.

• A cheaper travel plan may have lower medical or trip cancellation limits.
• A budget home policy may cover renovations but place tighter limits on valuables.
• A low-cost motor plan may restrict which workshops you can use.

Personal accident insurance

Personal accident insurance is also widely available through direct channels. It generally pays stated benefits if an accident leads to a covered injury, disability or death. Some plans also include medical reimbursement or hospital cash benefits.

The main limitation is in the name: it covers accidents. It does not replace hospitalisation insurance for illnesses. It also does not provide the same broad income protection as life, critical illness or disability insurance.

Direct Purchase Insurance for life protection

Direct Purchase Insurance, or DPI, is a specific category of life insurance that can be bought without personalised financial advice.

First introduced in Singapore on 7 April 2015, following a Monetary Authority of Singapore (MAS) review, DPI was designed for people who already know what they need and do not want to pay for advice they would not use.

DPI comes in two main forms:

• Term life insurance, which provides protection for a chosen period.
• Whole life insurance, which provides long-term protection and builds cash value.

Because no advisory commission is charged, DPI generally costs less than comparable advised policies.

The limitation of DPI in Singapore is it currently caps the maximum sum assured at S$400,000 per insurer. So, if a parent with two children and a housing loan calculates they need S$800,000 to cover outstanding debt and future education costs, a single DPI plan alone will not suffice.

Selected critical illness and health policies

Insurers may also sell selected cancer, critical illness, hospital cash and other health-related policies online. These policies can look similar while working quite differently.

Critical illness plans online for example may vary in:

• the illnesses covered
• whether early-stage conditions are included
• how each condition is defined
• whether multiple claims are allowed
• waiting and survival periods
• whether one claim reduces another benefit

You should also understand what the payout is intended to do.

Critical illness insurance generally provides a lump sum that can support living expenses, recovery or time away from work. Hospital cash insurance pays a stated amount for a covered hospital stay. Neither is a replacement for an Integrated Shield Plan that helps cover eligible medical bills.

CareShield Life supplements

CareShield Life provides basic financial support if you develop severe disability.

Depending on the insurer, a private supplement may be available through a direct online application. It may increase the monthly payout or provide benefits from an earlier level of disability.

Before buying a supplement, consider what the money may need to cover, including:

• caregiving
• home modifications
• transport
• medical equipment
• daily expenses
• income lost by you or a family caregiver

The online application may be simple. Estimating the possible cost of long-term care is not.

Selected savings and endowment policies

Some insurers also sell selected savings or endowment plans online. These may provide a maturity payout, regular cash benefits or a combination of guaranteed and non-guaranteed returns.

Before buying, check:

• how long your money is committed
• which values are guaranteed
• which returns depend on future bonuses
• whether you can access the money early
• what happens if you surrender the policy
• whether the payout date matches your goal

A prominent illustrated return should not be the only reason for making a long-term financial commitment.

What insurance plans may still require a financial representative

You are more likely to need a financial representative for:

• Integrated Shield Plans, depending on the insurer. They can involve medical underwriting, hospital and ward choices, riders, provider panels and long-term affordability considerations.
• More customisable life and critical illness insurance. These may offer higher coverage, additional riders, early-stage benefits or multiple claims.
• Disability income insurance. The amount of income to protect and the policy’s definition of disability require careful consideration.
• Retirement and regular-premium savings plans. These can involve long commitments, non-guaranteed values and questions about how the policy fits alongside CPF and investments.
• Investment-linked policies. These combine insurance with investments and may involve fund selection, market risk, fees and changing insurance charges.
• High-value or specialised insurance. Business succession, shareholder protection, estate planning and large life insurance applications may require more detailed advice and financial underwriting.

These products are not automatically better than policies sold directly. They simply involve more decisions, and more ways to get those decisions wrong.

What are the advantages of buying insurance yourself?

1. You may pay less

The clearest cost difference applies to DPI. Because DPI is sold without financial advice or commission, its premiums are generally lower than those of comparable advised life policies.

Other policies sold online are not automatically cheaper. Compare the benefits, definitions and limits as well as the premium.

2. You can decide at your own pace

You can read the documents, compare options and complete the purchase when you are ready. This may suit people who prefer doing their own research and do not want to make a decision during a sales conversation.

3. You avoid paying for advice you do not need

You may already know that you need travel insurance for an upcoming trip or term life protection until your housing loan is repaid. Where both the problem and the solution are clear, personalised advice may add little value.

4. You can look beyond one representative’s product range

A representative may only be able to recommend products from the insurer or financial advisory firm they represent. Someone researching independently can compare a broader selection, although this also requires more time and knowledge.

What are the risks of buying insurance by yourself?

1. You could solve the wrong problem

The biggest danger is not necessarily buying a poor policy. It is buying a useful policy for a less important need while leaving a serious gap uncovered.

For example, you might buy:

• personal accident insurance without adequate hospitalisation coverage
• a large whole life policy while lacking emergency savings
• several critical illness policies but too little life protection
• hospital cash insurance believing it will settle the full hospital bill

Each policy may be useful on its own. Your overall protection can still be incomplete.

2. You must calculate your own needs

You are responsible for deciding:

• which risks should be insured first
• how much coverage you require
• how long the coverage should last
• what your existing policies already provide
• how much premium you can sustain

When you buy life insurance without advice, you must decide for yourself whether the product suits your circumstances and needs.

3. You must understand the policy definitions

Insurance contracts use precise definitions. “Critical illness”, “total and permanent disability” and “pre-existing condition” may mean something narrower in the policy than in everyday conversation.

You need to check:

• what triggers a payout
• what is excluded
• how long waiting periods last
• whether premiums can rise
• which values are guaranteed
• what happens if you cancel early

You must also disclose requested health and financial information fully and accurately. Incorrect or incomplete information could affect your coverage or a future claim.

4. Your policies may become fragmented

Buying policies separately can leave you with several insurers, payment dates, renewal notices and claim processes. You will need to keep your own records and make sure your family knows what coverage exists and where the documents are stored.

What does a financial representative add?

A financial representative should help you identify what you need before recommending a life insurance or investment product.

This normally involves a financial needs analysis covering your:

• income and expenses
• savings and investments
• debts
• dependants
• existing policies
• financial objectives
• ability to afford premiums
• risk tolerance, where investments are involved

The representative should have a reasonable basis for the recommendation and explain why it is suitable.

Advice may be useful when you need help answering broader questions such as:

• How much life insurance does my family need?
• Should I prioritise critical illness or disability coverage?
• Do my existing policies overlap?
• Can I afford my Integrated Shield Plan after retirement?
• How should my insurance work with CPF and investments?
• Should I keep or replace an existing policy?

These questions cannot be answered by looking at one product page.

Why a hybrid approach to buying insurance may be more practical

You do not have to choose between buying everything yourself or using a financial representative for every policy.

You might:

• buy travel, home, motor and maid insurance directly
• purchase straightforward life or personal accident coverage yourself
• use a financial representative for an Integrated Shield Plan
• seek advice when reviewing family protection or retirement needs
• return to direct channels when you later identify a simple gap

This lets you handle straightforward purchases independently while still getting help with decisions that have larger or longer-lasting consequences.

Buy by yourself when you understand both the problem and the solution. Seek advice when the difficult part is working out what the solution should be.

Questions to ask before buying insurance by yourself

• What financial loss would this policy cover?
• How did I calculate the amount?
• Do I already have similar protection?
• Which events are excluded?
• Can the premiums rise?
• Can I maintain the policy if my income changes?
• What happens if I cancel it early?
• Does this purchase leave another important need uncovered?

Questions to ask a financial representative

• What gap did you identify?
• Why is this policy suitable for that gap?
• What simpler or lower-cost options did you consider?
• Which benefits and values are guaranteed?
• What are the main disadvantages?
• What happens if I cannot continue paying?

Frequently asked questions

Can I buy all my insurance online in Singapore?

You can buy many types of insurance online, including general insurance, personal accident policies, Direct Purchase Insurance and selected critical illness, health, long-term care and savings policies.

However, the range differs between insurers. Some hospitalisation, retirement, investment-linked and specialised policies may require a financial representative.

Can I buy an Integrated Shield Plan without an agent?

It depends on the insurer. Some insurers provide an online application route. Others require or involve a financial representative because the application may include medical underwriting and choices about hospital coverage, riders and affordability.

Is all insurance sold online Direct Purchase Insurance?

No. “Buying online” describes the sales channel. DPI is a specific category of broadly standardised term and whole life insurance introduced in Singapore in 2015 and sold without personalised financial advice or advisory commission.

Is insurance bought directly always cheaper?

Not always. While DPI generally costs less due to waived commissions, other direct policies may simply have lower limits, tighter exclusions, or different benefits to achieve a lower price point.

Do I need a financial representative to buy life insurance?

Not always. You can buy DPI term and whole life insurance directly. Insurers may also offer other life policies through online channels.

Advice may be useful when you do not know how much coverage you need or are choosing between several types of protection.

Written by: Great Eastern Lifepedia team