Insurance
Commissions And Cost Of Insurance
By Living Healthy, Staying Wealthy  •  September 29, 2011
Some things I picked up to share while reading through the insurance benefit illustration and product summary:

"- Total Distribution Cost
This shows the total costs the company may expect to incur. These costs include cash payments in the form of commission, cost of benefits and services paid to the distribution channel."

Extracted word for word, this shows the commission paid to the agent.
A look at the information provided works out to be about 80% of the first year premium and 20% for the remainder of the plan. Essentially, about 1 year premium is lost to commission. (Ok, noted, I can save 1 whole year of premium if I cut out the agent's commission)

"- Effect of Deduction
This is the accumulated value of the deductions for the cost of insurance and expenses."

Basically, this is the company's revenue!
From the table, it is roughly 100% of ......
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By Living Healthy, Staying Wealthy
Aaron Lau is a Independent Financial Adviser licensed by the Monetary Authority of Singapore to provide financial advice to individuals in Singapore. The main reason he is in the Financial Advisory industry is to share what he has learned after studying and comparing the various insurance and investment instruments in the market. He strongly feels that proper, quality financial planning is important to all individuals and sincerely would like to reach out to help as many as possible.
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