Overview of DIRECT Star Term (Renewable) by Income Insurance Limited

DIRECT Star Term (renewable) is a Direct Purchase Insurance (DPI) term life plan offered by Income Insurance Limited, designed for consumers seeking pure protection without financial advice or commission structures. As a non-participating regular premium policy, it provides coverage against death, total and permanent disability (TPD before age 65), and terminal illness (TI) during the policy term. The product offers a level sum assured ranging from S$50,000 to S$400,000 for entry ages 18 to 64, with renewability extending coverage up to age 84 in five-year increments. It is strictly a no-frills protection tool: there is no cash value, surrender value, or maturity benefit, and it does not allow premium payments via SRS or CPFIS. The policy features guaranteed premiums throughout the term and includes standard exclusions such as suicide within the first year and claims arising from unlawful acts or substance abuse.

How it compares

When evaluating DIRECT Star Term against other direct-purchase term life options in Singapore, cost efficiency is a key differentiator. Based on data for a 35-year-old male non-smoker with a S$100,000 sum assured over a 5-year coverage term, DIRECT Star Term carries an annual premium of $77.

In comparison, DIRECT - Term (Renewable) by China Taiping Insurance is the most affordable option in this peer group at $66 per year, making it approximately $11 cheaper annually than Income’s offering. Conversely, DIRECT - HSBC Life - Term Lite (Renewable) and Termcare are significantly more expensive at $156 per year, which is nearly double the cost of DIRECT Star Term. Another competitor, DIRECT- TM Basic Term (Renewable) (+ Critical Illness) by Tokio Marine Life, charges $113 per year. While Tokio Marine’s product includes a critical illness component, making direct premium comparison complex, its base term protection cost is still higher than Income’s pure death/TPD/TI coverage.

All four products listed share a 5-year coverage term basis for this comparison and do not provide surrender values or net returns, consistent with their nature as pure protection term plans. The primary trade-off lies in the balance between premium cost and insurer brand preference, with China Taiping offering the lowest entry price and HSBC Life commanding a premium price point.

Pros

• Competitive Pricing: At $77/year for a S$100k SA (age 35 male non-smoker), it is one of the more affordable options among direct term plans, sitting between the cheapest (China Taiping) and mid-range competitors.
• Renewability: The policy can be renewed automatically every five years up to age 84, providing long-term coverage continuity without requiring new underwriting, provided no claims have been made.
• Broad Coverage Scope: Includes not just death benefit but also Total & Permanent Disability (TPD) before age 65 and Terminal Illness (TI), offering comprehensive protection against major life risks.
• Strong Insurer Stability: Backed by Income Insurance Limited, which holds an AA- credit rating from S&P, indicating strong financial stability.
• Flexible Premium Payment: Allows monthly, quarterly, half-yearly, or yearly premium payments to suit different cash flow needs.

Cons

• Higher Cost than Cheapest Peer: It is $11 more expensive per year than DIRECT - Term (Renewable) by China Taiping for the same coverage basis.
• No Cash Value or Savings Component: As a pure protection plan, it offers no return of premium, cash value, or maturity benefit; premiums are consumed entirely for insurance coverage.
• Limited Payment Methods: Does not allow premium payments via SRS (Supplementary Retirement Scheme) or CPFIS (CPF Investment Scheme), limiting tax-advantaged payment options for some consumers.
• Strict TPD Definition: The TPD benefit requires the insured to be unable to carry out any occupation, rather than just their own occupation, which is a stricter definition than some other policies.
• No Convertibility Feature: The policy cannot be converted into a permanent life or whole life plan without applying for a new policy and undergoing underwriting again.

Who it may suit

DIRECT Star Term (renewable) may suit budget-conscious consumers who want to secure pure death and disability protection directly from a well-established insurer like Income Insurance. It is appropriate for individuals who do not require savings components, cash value, or SRS/CPFIS premium payments. Those who prioritize a balance between cost and insurer reputation might find this product appealing compared to the lowest-cost option (China Taiping) or the higher-priced HSBC Life alternative. It is best suited for those comfortable with a DIY approach to insurance procurement without financial advice.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.