A few months ago, I have a fridge breakdown problem. I have no choice but to get a new fridge. Being the frugal shopper, I sought some advice from people that tends to purchase things by evaluating based on value.
One of the advice provided is this:
Do your shopping at the reputable electronics store, online or brick and mortar. Evaluate based roughly on price, quality and grade of the appliance and get the retail price after any discount provided.
Then call up this shop call Goh Ah Bee (which resides in Kovan Singapore) and ask for their best price. The prices are usually equal if not lower. Then take this price give it a 10% discount and see if the reputable electronics store is able to match.
This will work out well for you in that, either you buy from Goh Ah Bee, or the reputable store gives you an even lower price.
Goh Ah Bee is able to carry out what is called a Price Match.
They are able to do that due to their heavily optimized and nimble supply chain.
Goh Ah Bee have shown that for all the models that I was interested in, their price was lower. They have been a great no frills alternative for me.
What if in Insurance, there are Price Matching as well?
In insurance protection, there are some products that are more or less commodities.
Term insurance protection is one of them. There is no cash values for them. You purchase them to protect your loved ones for a particular risk:
- Death: In the event the assured passes away, dependents such as spouse, kids and parents have a lump sum to last them till the kids become productive
- Total Permanent Disability: In the event of heavy disability, there is a lump sum to offset the expenses to carry out long term care
- Critical Illness: In the event that the assure suffers from 30 or 37 listed type of critical illness, there is a lump sum to replace x number of years of income and seek alternative treatment
Whether you purchase from which insurance company, they are largely the same. The probable differences are the available term duration, underwriting and price.
So in such a case, reducing the cost of your protection would be wise.
DIY Insurance is Singapore’s First Online Insurance Comparison Portal that lets you compare term insurance, whole life insurance, disability income, insurance savings and retirement plans, then purchase these insurance through the online platform. The planning would be done by yourself, while DIY Insurance provide the platform to purchase the products to fit in your plan.
DIYInsurance Price Beater
In this initiative, DIYInsurance will not only match, but beat the premiums paid on any term insurance that you are quoted through other insurance distribution channel.
As long as a term insurance protection that is not distributed by DIY Insurance, it is eligible under DIYInsurance Price Beater.
So say that you are quoted a 45 year level term insurance assuring $1,000,000 by AIA for $8,040 per year, you can contact DIY Insurance, and they would provide you with a comparable term insurance protection for the same duration and sum assured that is overall lower in premium.
So for a commoditized class of protection, you have the advantage of sourcing for the cheapest insurance in the market.
What are the term insurance not covered?
The term insurances that are able to distribute by DIYInsurance will not be covered. Since the prices should be the same, if you purchase from DIYInsurance, you save as they will provide a
30% 50% commission rebate. So your evaluation will be what discount in pricing your planner is able to offer versus this 30% 50% rebate.
Group Insurance are of a different structure, and their prices are low, something that DIYInsurance do not offer, and will find it challenging to beat.
Update 2016 Nov: DIY Insurance have up the ante, by offering 50% rebate instead of the original 30% rebate.
Learn more about the Price Beater Today
If you are unsure how this price matching works, or that you do not think that price is mainly the only difference, do contact DIY Insurance to clear your doubts.
Like all insurance purchased through DIY Insurance, they will rebate you 30% of the commissions earned. So this will mean that through DIY Insurance, you find the cheapest term protection, BUT also get a 30% off the commissions usually earned by the term insurance policies that is not distributed by DIY Insurance.
As if that is not enough, there will be additional shopping vouchers up to $50 offered if you take up this deal if you signed up for any price beater policies before 31st December 2015
If you are looking for term protection, and would like to make an affordable decision do check out DIY Insurance’s Price Beater here.
This article is a collaboration between Investment Moats and DIYInsurance.