An effortless – and perfectly legal – way to shave 5% off your Insurance premiums

Posted 22 March, 2018 by Clearly
in Educate Yourself


No one likes to pay extra for no reason.

More correctly, no one sane likes to pay extra for no reason.

We sane folk sometimes go to insane lengths to avoid price discrimination, especially when we are aware of it.


Like walking for 20 minutes more to buy shampoo from Sheng Siong, instead of Cold Storage.
(To avoid being scalped, geddit? geddit?)

Like scanning 12 different sites to get notified of the latest Uber/Grab promo codes.

Like buying airline tickets 8 months in advance to enjoy the early bird discount.


It seems to be in our blood – by getting more value, we are also getting ahead. No real flaw in that logic, as long as it is not taken to the extreme. (Here’s to laughing at the Americans on Black Friday!)


Yet a good many of us overpay by hundreds, or even thousands when it comes to Insurance premiums. And are blissfully unaware of it.

Yes, you read all of that correctly. There are people are paying extra on the same exact insurance plan, offered by the same exact insurance company.



Yet they say literature is dead in Singapore. Bollocks!


Paying extra…  by Hundreds? Thousands? How?


Simply by opting to pay for your premiums on a monthly basis.


What other payment frequencies are there?


Quarterly, Semi-Annually, and Annually.

The percentage difference between an Annual mode of payment vs Monthly payment can be up to 5%. When a person spends up to 2,000 to 3,000 on Insurance per year, that adds to up to a hefty difference over 10 or 20 years.


Show me the proof!


Ok Sherlock. We took 3 different plans from 3 different insurers and noted their premiums across the different frequencies of payment.


From Insurer A: Term Plan

Insurer ANote the increasing % difference as the payment frequency increases.


From Insurer B: Early Stage Critical Illness Plan

Insurer BThe % differential is more or less constant, but still no cause for joy.


From Insurer C: Whole Life Plan

Insurer CA pretty clear cut trend here, and also where we found the greatest price differential: 5%


What to make of the results


We didn’t test across all the plans, insurers, age bands, etc for one simple reason: The implication is crystal clear.

Insurers will always charge you more for opting into a more frequent mode of payment. That figures because there are additional administrative costs to bear.

Moreover, some plan types may be “taxed” more heavily than the others, because of the time value of money. If you withhold part of the premium over the year, that is less money the insurer has to generate returns with.


If you haven’t done so already, it’s time to wise up – and pay up. aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

If you like this article, remember to share it with those around you. If you REALLY love this article, feel free to send us a portion your net savings per year. That would mean fewer trips to Sheng Siong for me. TIA!

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