Income Insurance DIRECT Star Term (non-renewable) Review

Income Insurance Limited has introduced DIRECT Star Term (non-renewable), a direct-purchase term life plan designed for consumers seeking straightforward, commission-free protection. As a Direct Purchase Insurance (DPI) product, it is sold directly by the insurer without intermediary advice, positioning itself as a no-frills option for those who prefer to manage their own insurance procurement. This policy offers pure protection against death, total and permanent disability (TPD before age 65), and terminal illness (TI). It is critical to note that this is a non-participating plan with no cash value, no surrender value, no bonuses, and no maturity value. The coverage is strictly limited to the policy term, after which the protection expires.

How it compares

To understand where DIRECT Star Term stands in the market, we compare it against similar DPI term life products from other major insurers. All figures below are based on a common basis: Age 35, Male, Non-smoker, with a 20-year coverage term and premiums calculated per $100,000 Sum Assured.

Premium Competitiveness: DIRECT Star Term is priced at $108 per year per $100,000 of coverage. This makes it the most affordable option among the listed peers for this specific demographic and term. It is approximately 15% cheaper than Singlife’s DIRECT Term Life ($127) and significantly more cost-effective than Prudential’s PRUprotect term ($263) and Manulife’s ManuAssure with Critical Illness ($244). The lower premium for ManuAssure likely reflects the inclusion of a Critical Illness rider, whereas DIRECT Star Term focuses on core life/TPD/TI coverage.

Coverage and Features: All compared products offer a 20-year term for this basis. However, DIRECT Star Term is non-renewable, meaning coverage ends after 20 years with no option to renew or convert. It does not allow SRS or CPFIS premium payments. In contrast, while the comparison table does not specify renewability for peers, standard DPI term plans often vary in these features; users must verify if other options offer renewable terms if long-term continuity is a priority.

Pros

• Lowest Premium: At $108/year per $100k SA, it offers the most competitive entry price among the compared DPI term products for a 35-year-old male non-smoker.
• Commission-Free: As a DPI product, there are no adviser commissions embedded in the premium, potentially offering better value for self-directed buyers.
• Core Protection: Covers Death, TPD (before age 65), and Terminal Illness, providing essential safety nets for dependents or debt coverage.
• Insurer Stability: Backed by Income Insurance Limited, which holds an AA- credit rating from S&P, indicating strong financial strength.
• Flexible Payment Options: Premiums can be paid monthly, quarterly, half-yearly, or yearly.

Cons

• Non-Renewable: The policy cannot be renewed after the 20-year term expires. If health deteriorates, obtaining new coverage later may be difficult or expensive.
• No Cash Value: It is pure protection only; no savings or investment component exists. Premiums paid do not accumulate any value.
• Limited Sum Assured Cap: The maximum sum assured for DPI products is capped at S$400,000 per insured person across all Income DPI policies.
• Strict TPD Definition: TPD coverage requires the insured to be unable to carry out any occupation (not just their own) and must be certified as totally disabled for at least six consecutive months.
• No SRS/CPFIS Payment: Premiums cannot be paid using Supplementary Retirement Scheme or CPF Investment Scheme funds.

Who it may suit

DIRECT Star Term is ideal for budget-conscious consumers who need high coverage amounts at the lowest possible cost and are comfortable managing their insurance needs independently. It suits individuals with a clear understanding of their risk profile who do not require cash value accumulation, critical illness riders (unless added separately), or renewable terms. It is particularly suitable for those seeking basic death and disability protection for a fixed period, such as covering a mortgage or family expenses during their working years.

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.