Overview of DIRECT – Great Term

DIRECT – Great Term is a direct-purchase (DPI) term life insurance plan offered by Great Eastern Life Assurance Company Limited, a subsidiary of OCBC Group with an AA- credit rating from Standard & Poor’s. As a pure protection product, it provides financial coverage against death, terminal illness, and total and permanent disability (TPD) without any savings, investment, cash value, or maturity benefits. The plan is designed for consumers who prefer to buy insurance directly from the insurer without intermediary advice, ensuring a commission-free transaction.

The product offers three plan options: a 20-year term, coverage up to age 65, and a 5-year renewable term (DIRECT – Great 5yr Term). For the standard non-renewable plans, premiums are guaranteed for the entire policy term. The 5-year renewable option guarantees premiums only for the initial five years, with future rates subject to adjustment based on attained age and occupation. Coverage is available up to a sum assured of S$5,000,000 for TPD benefits. This plan does not allow premium payments via SRS or CPFIS and requires medical underwriting.

How it compares

To evaluate DIRECT – Great Term objectively, we compare its cost against similar direct-purchase term life products from other major insurers in Singapore. The comparison below uses a standardized basis: a 35-year-old male non-smoker seeking a $100,000 sum assured over a 20-year coverage term.

Cost Analysis: At $97 per year for every $100,000 of coverage, DIRECT – Great Term is competitively priced within the direct term market. It is slightly more expensive than Tokio Marine’s DIRECT- TM Basic Term (Level), which offers the lowest premium at $93 for the same profile and term. However, it is significantly cheaper than HSBC Life’s Term Lite and Termcare ($222) and moderately priced compared to China Life’s Term Plan ($115).

Feature Comparison: Unlike HSBC Life’s offering which may include additional care benefits (implied by "Termcare" in the name), DIRECT – Great Term focuses on core protection. It lacks renewability for the 20-year and up-to-age-65 plans, meaning coverage ends at maturity without guaranteed insurability. The 5-year renewable option exists but carries the risk of premium increases upon renewal. All compared products share the characteristic of being direct-purchase, no-frills term plans with no cash surrender value.

Pros

• Competitive Pricing: Offers one of the lower premium rates in the direct market ($97/$100k SA), closely trailing the lowest-cost competitor.
• Financial Strength: Backed by Great Eastern Life, an AA- rated insurer and member of the OCBC Group, providing stability and trust.
• Guaranteed Premiums (Non-Renewable): For the 20-year and up-to-age-65 plans, premiums are locked in for the entire duration, protecting against age-based cost hikes.
• Direct Purchase Efficiency: Commission-free model allows for a streamlined, self-service buying experience for informed consumers.
• Comprehensive Core Benefits: Includes death, terminal illness, and TPD benefits with a high TPD sum assured limit of S$5,000,000.

Cons

• No Renewability (Standard Plans): The 20-year and up-to-age-65 plans do not renew; coverage lapses after the term ends, requiring new underwriting if protection is still needed.
• Premium Uncertainty for Renewable Plan: The 5-year renewable option does not guarantee premiums beyond the initial five years, exposing policyholders to potential cost increases.
• No SRS/CPFIS Payments: Premiums cannot be paid using Supplementary Retirement Scheme (SRS) or CPF Investment Scheme (CPFIS) funds, limiting tax-deferred payment options.
• Strict Underwriting & Exclusions: Requires medical underwriting and excludes benefits for suicide within the first year, pre-existing conditions not declared, and certain high-risk activities like non-scheduled air travel.
• No Cash Value: As a pure protection plan, there is no return of premium or cash surrender value if the policy is surrendered early.

Who it may suit

DIRECT – Great Term is suitable for health-conscious individuals seeking affordable, long-term financial protection for their dependents without the complexity of savings components. It appeals to those who prioritize insurer stability (AA- rating) and direct purchasing efficiency. The 20-year plan fits those needing fixed-cost coverage for a specific period (e.g., mortgage duration), while the up-to-age-65 option suits those wanting protection through their working years. It is less suitable for individuals seeking tax-deferred premium payments via SRS/CPFIS or those who anticipate needing to extend coverage beyond the initial term without undergoing new medical underwriting.

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.