Financial Planning Book and Answers

Hi Mr. Tan,
I am an undergraduate who reads your articles with interest as they give me good insights into the basics of financial planning from a relatively unbiased point of view.
You mentioned about distribution costs = 100% of annual premiums and deduction costs = 20% of total premium value as 'benchmarks'. May I ask how did you arrive at these figures? 

I was recommended to a financial advisor. He introduced me to a limited (25yr) whole life insurance which covers 150,000 life and CI rider for $250/month. I rejected it as I have no intention of getting insurance now since it'll eat up too much of my monthly allowance. After reading your articles, I was shocked to realize the true meaning of distributive/deduction costs involved. I'd like to clarify the 'figures' you quoted.
REPLY
you have to find the answers from my book on Financial Planning or the FAQ in my website. I am not able to give individual coaching on these matters.
www.tankinlian.com/ishop