Overview: DIRECT - Etiqa Term Life II

Etiqa Insurance Pte. Ltd. offers the DIRECT - Etiqa Term Life II, a direct-purchase (DPI) term life plan designed for consumers seeking pure protection without intermediary commissions. As a non-participating policy, it provides coverage against death, total and permanent disability (TPD), or terminal illness for a fixed period, with no cash value, surrender value, or maturity benefits. The product is available in terms of 5 years (renewable), 20 years, or up to age 65.

A key structural feature is its limited aggregate coverage cap: Etiqa limits the maximum sum assured across all its direct purchase products to S$400,000 per life insured. The policy includes automatic coverage for death and optional riders for TPD and terminal illness. Notably, while it lacks guaranteed renewability for longer terms, the 5-year term option allows for automatic renewal without proof of good health, provided the insured is under age 81 and has no prior claims. Premiums are level and guaranteed throughout the payment term, payable via monthly, quarterly, half-yearly, or yearly installments.

How it compares

When evaluating the DIRECT - Etiqa Term Life II against similar direct-purchase term life products on a like-for-like basis, cost efficiency is the primary differentiator. The comparison below uses data for a 35-year-old male non-smoker with a 20-year coverage term and S$100,000 sum assured.

Premium Positioning: The Etiqa plan sits in the mid-to-high range among its peers. At $187 per year per S$100,000 of coverage, it is significantly more expensive than competitors like Great Eastern ($97) and Tokio Marine ($93), which offer premiums roughly half the cost of Etiqa’s offering. However, it is cheaper than HSBC Life’s Term Lite and Termcare, which charges $222 for the same profile.

Feature Trade-offs: While price is a major factor, buyers should consider the product structure. Unlike Great Eastern or Tokio Marine, Etiqa imposes a strict S$400,000 aggregate cap on direct purchase products. This makes the plan less suitable for individuals requiring high coverage limits through this specific channel. Additionally, the plan does not allow premium payments via CPFIS or SRS, limiting payment flexibility compared to some other insurers that may offer these options. The lack of renewability beyond the initial term (except for the 5-year tier) also contrasts with products offering longer-term guarantees.

Pros

• Direct Purchase Model: Commission-free purchase directly from the insurer, potentially simplifying the buying process for self-directed consumers.
• Comprehensive Core Benefits: Includes automatic coverage for death, TPD, and terminal illness without requiring separate rider purchases for basic protection.
• Funeral Aid Advance: Offers an immediate advance of up to S$3,000 for funeral expenses during claim assessment, providing quick liquidity to beneficiaries.
• Guaranteed Renewability (5-Year Term): The 5-year renewable option allows renewal without proof of good health, offering continuity for those who may develop health issues later.
• Policy Owners’ Protection Scheme: Covered under the SDIC’s scheme, adding a layer of security for policyholders.

Cons

• Higher Premiums: At $187 per S$100k SA, it is nearly double the cost of major competitors like Great Eastern and Tokio Marine for identical coverage profiles.
• Low Aggregate Cap: The S$400,000 maximum sum assured limit across all Etiqa direct products restricts its utility for high-net-worth individuals or those needing substantial coverage.
• No Long-Term Guaranteed Renewability: Unlike some competitors, the 20-year term does not guarantee renewal beyond that period; coverage ends unless a new policy is taken.
• Limited Payment Flexibility: Does not accept CPFIS or SRS premiums, reducing funding options for eligible consumers.
• Strict Exclusions: Covers exclusions for dangerous sports, aviation (non-passenger), and specific HIV-related conditions, which are common but still limit scope.

Who it may suit

This product is best suited for budget-conscious consumers who prioritize insurer brand reputation over absolute lowest cost, or those who specifically prefer dealing directly with Etiqa. It may also appeal to individuals seeking a straightforward, no-frills policy with automatic TPD and terminal illness coverage included, rather than bundling riders separately. However, given the high premium relative to peers and the S$400,000 cap, it is less ideal for those seeking maximum value per dollar or high coverage limits through direct channels.

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.