Do you wish to build your savings while getting life insurance while doing so? Then AXA Philippines LifeBasix might be right for you. Hint: It is more than what you think it is.
LifeBasix is one of the five variable universal life policies of AXA Philippines. The other four are Academix, Axelerator, Retire Smart, and MyAmbition. As a VUL, LifeBasix allows you the opportunity to earn passive income while staying insured. Thus, you’re not only saving up but you can also have peace of mind knowing that your loved ones would be taken care of in case of your unexpected passing.
The following is a list of the important details of LifeBasix
|Type||Variable universal life/VUL|
|Minimum sum insured||₱400,000|
|Premium payment||Annually, semi-annually, quarterly, monthly|
|Managed funds||AXA’s investment funds|
As you can see from the table above, the lowest sum insured is set at ₱400,000.00. You can actually request for higher coverage if you want to. The lowest premium is at ₱14,400 per year. That’s ₱1,200 per month or ₱40 per day.
The premium can be paid yearly. Or, you may also opt to pay the plan every six months, every three months or every month. It’s not only flexible in terms of payment options. You can actually choose to enroll your bank account so premiums are paid automatically and on time for your convenience.
A part of your premium goes to building your savings called account value. Your account value will then be allocated to an investment fund of your choice. You can select equities if you’re aggressive investor or the bond fund if you are conservative investor.
Premium holiday is your ability to stop paying premiums at a certain point in your plan. Almost all the time this is done when your investment and returns are enough to cover for recurring charges. That is, your account value and the potential growth would be sufficient in paying for fees, charges, and cost of insurance.
For this plan, you can request for a premium holiday after paying at least 10 years.
Insurance riders can also be attached to LifeBasix. A rider is a contract that can be activated as add-ons to your original policy. What it does is to ensure that your life insurance provides adequate insurance to other areas in your life aside from unexpected demise.
LifeBasix is compatible with the following riders:
- Care. The Care rider takes care of replenishing lost income when you are admitted in the hospital.
- Critical conditions. We never know when we’ll get sick with dreaded diseases. The critical conditions rider pays out lump sum cash upon diagnosis of any of the eligible serious illnesses.
- Protector. Do you want to get higher sum insured? Then the best and affordable way to do it is by adding Protector, which increases your coverage.
- Secure. Secure rider offers protection from accidental death, major burns, and dismemberment.
- Waiver of premium. In case that you are stricken with disability, the waiver of premium ensures that your policy continues to remain valid even if you can no longer pay.
If you wish to build up your savings nest quicker, then you can actually do top-ups. A top-up is any amount that you pay on top of your premium. It goes directly to account value, subject to terms, which would then be put into your investment fund.
What are the advantages of LifeBasix?
There are many benefits in purchasing LifeBasix.
- Life insurance. Your beneficiaries such as your loved ones in your family and among your relatives can rest easy knowing that they would at least get some relief from financial worries when you pass away.
- Premium. After paying for minimum of 10 years, you can request for a premium holiday.
- Passive income. By investing in any of AXA’s funds, you have the potential of earning passive income.
- Potential higher death benefit. In times of unexpected death, AXA would pay out your beneficiaries whichever is higher between your sum insured and account value.
What are the disadvantages of LifeBasix?
You may want to read on the disadvantages of variable universal life (VUL) plans in general.
However for LifeBasix specifically, you can see that the lowest sum insured may not be sufficient especially if you are a breadwinner and there are many people depending on your income. Of course, you can increase your coverage to ensure that you meet all of your insurance needs.
Secondly, unlike Axelerator that has premium holiday at five years, the least number of years to pay the premium is set at 10 years.
LifeBasix Plus provides extra protection against dreaded diseases. It comes with the minimum life cover of ₱1 million, health coverage of ₱500K, and investment.
Is LifeBasix right for you?
LifeBasix can be a great start for people who would wish to start saving while getting the benefits of being insured. It may be suitable for young professionals who are at the beginning of their career. By investing and paying for insurance early on, they can lock in insurability and have a head-start in preparing for their financial future.
Secondly, breadwinners can also take advantage of the policy’s lower premium compared to that of the Axelerator’s. They may also choose coverage higher than the minimum sum insured.
Lastly, it can be good for those people who want the convenience of being able to manage both their investments and insurance policies with just one institution instead of hopping from one company to the next. This is what VUL can provide that may not be available when your investing separately.