Friend gave bad advice

Hi Mr. Tan,
Being a fresh grad (with loans to bear), it is really not easy for me to part with the $2000 premium paid so far. Your kind advice has made me reconsider my choice. How did you arrive at the net yield/gross yield? I tried to calculate it but could not get it right. I just want to understand the logic behind and fully convince myself to give up this plan, $2000 and possibly my friendship with that agent friend.

REPLY
The yield is calculated using a financial calculator. Some of your colleagues have this calculator and will be able to show you how the yield is calculated.

Please help to pass the message to your other friends. Their priority is to pay off the loan and not to waste money on a life insurance policy that takes away so much savings to pay commission to the agent.

If you need life insurance protection, you should buy a decreasing term insurance, as explained in this FAQ:
http://www.tankinlian.com/faq/savings.html