I just want to share with you my real experience with applying an insurance in the Philippine AXA Life Insurance Corporation. Here’s a sad but true story you can learn from.
My AXA Insurance Policy
Philippine AXA Life Insurance
First, let me introduce to you some vital information about Philippine AXA Life Insurance Corporation. It’s a financial company, a partnership between AXA Group and Metrobank Group. Based in France, AXA serves a global clientele of more than 80 million customers in more than 50 countries with over 1 billion Euros under management. They claimed as one of the world’s leaders in financial protection and wealth management. The Metrobank Group has consolidated resources amounting 649 billion pesos and capital funds of around 68 billion pesos.
My application to the Philippine AXA Life Insurance
I frequently go to a certain Metrobank branch to deposit money for my savings account. One day, a bank officer which is also an insurance agent approached and introduced me a kind of investment that would help me save and earn more in the future years. He’s quite smooth in selling the financial product and I’m very convinced of his idea to make my money grow more. At first, I’m not interested in his offer. After few weeks, I’m thinking of accepting that offer. And I went to the bank to apply for an investment insurance called Life Basix of Philippine AXA Life Insurance. I approached the same bank officer again for my application.
Life Basix of Philippine AXA Life Insurance
This kind of insurance is a regular-pay variable insurance product where a portion of the premiums/payments, net of the company’s charges in invested to a choice of fund. The kind of fund recommended by the bank officer is the Philippine Wealth Balance Fund which I opt in for. Unlike most investments, this insurance provides multiple benefits to the policyholder such as:
Guaranteed Death Benefit equivalent to at least 500% of the annual premium if no withdrawal is made.
Potential upsides from portion of the premium placed in bonds, equities and/or money market instruments, depending on your risk appetite.
Guaranteed loyalty bonus as a reward for keeping your investments with AXA.
The age covered by the insurance is up to 100 years old.
My Payment and Benefits
I pay 1,585.84 pesos monthly through automatically debiting from my savings account (ADA). It totals PhP19,030.00 annually.
For a premium of PhP19,030.00 annually, I’ll get to enjoy the following benefits:
For You (Living Benefits)
For Your Loved Ones (Death Benefits)
When the insured reaches 65
If the insured passes away
Based on 8% annual rate
4% annual rate of return, Account value
Or 8% annual rate of return, Account value
Or 10% annual rate of return, Account value
Note: The values are based on the projected performance of the fund. Sind the fund performance may vary, the values of the units are not guaranteed and will depend o the actual investment performance at that given period. The projected returns on investments are based on assumed annual rates of 4%, 8% and 10%. These rates are for illustration purposes only and do not represent maximum or minimum return on the fund.
Philippine Wealth Balance Fund
This is the type of my fund allocation. Level of risk is moderate. The funds are invested in government bonds and corporate equities.
My Account Value
The account value of my funds may go up and down depending on the market conditions. I regularly view my account value in the AXA Philippines website (www.axa.com.ph). If you are an AXA insurance policy holder, you can log-in to the website by registering first in the website. There, you can access your account value, your monthly premiums/payments transaction, etc.
What I’ve noticed in my account value is that it decreases its value by over 50%. In 4months, the total money I’ve deposited in my AXA account is around 6,000 pesos (this is the capital invested) and now it becomes for about 3,000pesos. This means that the market condition is not good. The reason might be that the stock market and prices of bonds are going down. (This is where it teaches me a lesson.)
My Approach to My AXA Insurance
I cannot risk too much if the market continues to fall in the succeeding months. In spite of that, I spent all the money in my savings accounts where my insurance payments are automatically debited due to a particular needed payment for an occasion. That’s why I’ve planned to exit for this kind of insurance investments. You may think that I should withdraw the money in my insurance account? I can’t do that. It’s in the Product Transparency Declaration (Agreement) between AXA Insurance and me that I have zero (0) withdrawable value during the first two years of the policy because the amount withdrawn will be subject to 100% surrender charge on the first two years. You can read the full AXA Insurance Product Transparency Declaration below. I don’t know how the fund managers played well the money in the market. I’m very young of age. I still have too much to learn regarding investments. It seems that I’m throwing away 1,585.84 pesos in the trash can every month.
AXA Insurance Product Transparency Declaration
Before you decide to invest in AXA Insurance, I think it’s very important that you know carefully its terms, conditions including the agreement or Product Transparency Declaration.
AXA Insurance Product Transparency Declaration
By signing off on the items listed below, I acknowledge that the same have been discussed with and thoroughly explained to me.
I understand that I am buying an investment-linked insurance product.
I understand that the principal and earnings are not guaranteed and the value of my unit investment (NAVPU) may go up or down depending on the performance of the separate funds.
I understand that the funds will be invested in Equities and/ or Bonds or a combination thereof, and will be subject to changes in market condition.
The available funds and the risks that they bear have been thoroughly discussed with me, and I have made my Fund Allocation decision based on my own judgment of and tolerance for these risks.
I understand that this product is appropriate for a long-term investment horizon.
I understand that I will have a zero (0) withdrawable value during the first two years of the policy because the amount withdrawn will be subject to 100% surrender charge on the first two years.
My own young thinking about investment
Investment is about making your money grow as time goes by. Here are my own young thinking that helps me a lot about investment that will surely help you too in your financial journey.
Never rush in pouring your money to a famous insurance company. The name matters but what matters most is the performance, integrity and reliability that the insurance company carries.
At young age, invest first in entrepreneurship or business than stock market, mutual funds, investment insurance, time deposit, etc. The business that you create can earn 100% more than the said investment vehicles. If your business has grown enough that you can afford to set aside a specific amount of money to a certain investment vehicle, then go for it. Let your money work for you.
Your investment is the reflection of the level of skills and knowledge you have regarding money, business and relationship. Think of the richest men in the world how they became rich: Carlos Slim Helu (Telecommunications provider), Warren Buffet (financial investor), Bill Gates (entrepreneur/founder of Microsoft). That’s why never stop developing your skills and explore more knowledge about money and business. If you have skills in sports like Manny Pacquiao, develop and become a master of it.
Choose which investment you can earn the most. Real estate is better than mutual funds or investment insurance. Real estate has an average 12% annual profit. Mutual funds average is 8% or lower.
That’s all for this time. I hope you learn a lot. Just drop a comment below regarding your investment experience.
so what you just applied yesterday? will it be possible to that i could still get the initial saving? its just 2k a month but they will be deducting that amount w/ my ATM every 25th.. i dont want this anymore after reading this article. how can i stop this?
Rian, if you want to stop, remember that you cannot withdraw your money for the first two years as an AXA insurance policy holder.
If you want to stop or cancel your account, just talk with your insurance agent. And also remember that insurance agents are there to sell insurance products to earn money. Keep in mind of the sweet talk of insurance agents.
Neil ron Catolico, to know your balance or the value of your AXA insurance, register at http://www.axa.com.ph/ .
26apollo allan q malimban(11-September-2012 9:55 PM)
she's supposed to receive the check when she turns 16 and that's on 2013... but why is it 2014 in her certification? please help me...
25apollo allan q malimban(11-September-2012 9:03 PM)
i am a policy holder of an educational plan for my daughter.... she's turning 16 next year June 5, 2013 but the certification i received from your company reads that she will start receiving her check on June 2014...Howcome
AXA's Plan Life Basix and Axelerator are long-term investment. You cannot realize your money on its first few years.
It's a LONG TERM. It's a disciplined savings. It's designed to reach your long-term goals.
People tend to save regularly for their future, for their kid's education, some already sets aside by the time they get old, and also save to make sure that their family has the money in case the bread winner dies.
Let's admit it. Death is unpredictable.
Situations that are really happening or could happen: Responsible families are saving, but sometimes due to unavoidable circumstances, they get to spend their savings and end up a zero savings. It should be clear that every individual has its short-term savings for emergency purposes and long-term savings for their goals. AXA will answer your long term savings. --------------------------------------------------------------------------------- ------------------------- And so, a responsible father started saving 10,000/month for his wife and 3 kids. After 2 years, unexpectedly he died. His family will be getting what he saved from the bank, a Php 240,000 LESS TAXES. AXA Philippines will give you a guaranteed insurance coverage of 500% of your premium. --------------------------------------------------------------------------------- ------------------------- Another thing, a client saved her 150,000 in her savings account for 9 years. (2003-2012) How much did she get?! Php 500.00! If that was invested with AXA, it could have been doubled! Investing in AXA has higher yield potential.
Hi everyone! I'm a financial advisor with AXA. In my 3 years of working with this company, I've never had any complaints against AXA. I think I know very well why your account value/balance became such. I'm not aware what your agent has discussed with you and even if I won't get a single centavo for this, I feel the need to help you guys. I will try my very best to answer all your queries. Please feel free to send me an email: firstname.lastname@example.org or call/text me via 09294710766.
Actually, I didn't cancel my policy. I just stop paying my premiums because I cannot afford it anymore due to my increasing monthly expenses. Until now, my AXA policy is active and has a value of 1,900 plus as I see it in my account in the AXA Philippines website.
Even if I decide to withdraw my money from my AXA account, I cannot do it because I haven't reach yet the 2-year non-withdrawable period policy of AXA.
Thanks for the reply khen! Yep, Lately I'm reading a lot about financial management. And it really helps me a lot. But in your own opinion. What should I do khen? Do I need to wait for two years in order to get my money back? (but i think it is not 100%) or just change my policy to a term insurance policy? What happened to your policy? Did you continue it? Thanks!
What should I do khen? Do I need to wait for two years in order to get my money back?
I'm not a financial guru and I cannot give you sound advice regarding your decision to continue or to stop your AXA insurance policy.
As I've said above in the article that, if you have enough money to set aside of it for an AXA insurance investment in the long-term, then, go for it. But you must know deeper what really AXA investment insurance is in order to earn more from it. They have something what they called top-up in which you can pour or invest more money in order to earn more. You can play this game better if you are more skillful and knowledgeable about this game. But you must be ready to take risks whatever may happen. In the economic cycle, financial crisis always happen.
In the AXA investment insurance, some of your money is plowed or invested in the stock market, so you should expect fluctuations in your account value. It may go down or up. But in the long-term, stock market prices always goes up. It's always good to invest in AXA in the long-term.
What happened to your policy? Did you continue it?
No due to the fact that my cashflow right now is only enough to my basic needs in life and my expenses are increasing. I have no enough money to invest in AXA insurance at this moment. But if I have enough money, then that would be the time I will go back to invest in AXA insurance.
changing your policy to a term insurance isn't a wise plan of action. there are no living benefits so you or should I say your BENEFICIARIES will only benefit from this kind of insurance-term when you die. term insurance is mostly provided by employers.
Sir your right about that, I also have the same policy with axa, and I'm thinking of cancelling it after reading the "The Wealthy Barber", because I realized that I really dont need an insurance. Im 24 yrs old and paying semi anually for the policy, Im about to pay the half premium this April and I want to talk to my insurance agent about it. Do you have any tips or suggestions? Am I right about cancelling it? I really want to quit the policy but I want money back as well, What's the safest and easiest way to quit the policy with the assurance of getting your money back even if its 75% but not lower than 50%?
jc, you are really a well-read and you are too young to risk for an investment with lower returns. You cannot get your money back if your account has not yet reach 2 years. In other words, within the first two years of your AXA policy, you cannot withdraw your money because it's in the Axa's Insurance Product Transparency Declaration that you will have a zero (0) withdrawable value during the first two years of the policy because the amount withdrawn will be subject to 100% surrender charge to AXA on the first two years.
If you have enough money to risk with AXA investment, you can continue to pay your monthly premium. Investing in AXA is a long-term game. Stock prices increases in value in the long-term. But you should be aware of a coming financial crisis in the future. Your account value may turn into zero value as what other people experienced.
see that's the point, the earlier you start investing, the better. why? think of this, if you're paying your SSS monthly, when can you avail of the pension? @ age 60 or 65 right? but do you think the pension you'll be getting from SSS is enough to support you and your partner when you are no longer capable of working? think also of inflation. will our PHP1000 have the same buying power years from now?
hi i am interested of getting one for my son. I was told that even though the market will go down it wont affect my money bcos i told the agent of my doubts and my understanding of the policy but she assures me that my money will earn. I am going back on March 15 to sign for the premium for my son, glad that I have read this. I will make sure that I understand the policy before signing up.
agents will always say positive words. How can they earn money/commissions if they told you terrible insurance experiences?
It happened before that every global or local financial crisis, your insurance account value will go down or worst will be dissolved to zero.
In 2009, many insurance investors suffered too much losses. They accumulated more than millions of their account for many years but not until 2009, their millions were turning into thousands and many into zeros.
You must be ready to face the risk in investment insurance. Always monitor your account. You must also be ready if a financial crisis is approaching.
Yes, you can earn with your insurance account. Like any other investments, you must closely monitor its performance. If it's time to withdraw, do it. If it's time to pour more money, do it.
Make sure to fully understand the details of the policy before signing up.