I need help and guidance with my moms AXA MyLifeChoice
I am in urgent need of help understanding this because our financial advisor is honestly incompetent. Sorry for the word, but that is the truth.
My mom is 56 years old. She got an insurance policy from AXA because her co-worker is an agent there “first red” flag. She was recommended to get AXA MyLifeChoice because she was told that it would generate a decent amount of interest. I actually didn’t know she had gotten insurance, let alone a VUL, until recently.
When I found out that she had missed a payment, I asked her if that was okay. I asked what insurance policy she had, and that’s when I found out it was from AXA. I asked her if she had ever checked her policy because I’ve heard a lot of horror stories when it comes to VULs.
So, we checked it, and surprise, surprise she only had ₱1,599 in her fund value.
Her premium is ₱2,096 per month, and she started paying in March 2022. If we calculate that:
₱2,096 × 52 months = ₱108,992
And that’s not even including the ₱15 service fee for every payment made.
I understand that with VULs, a significant portion of the premiums can go toward insurance charges, fees, and other costs, especially during the early years. I also know that you can’t expect to get 100% of what you’ve paid reflected in the fund value.
But seriously ₱1,599?!
That’s roughly 1.5% of the ₱108,992 she has paid so far.
Where the hell did the rest of the money go?
I genuinely want to understand how this is possible. Is this actually normal for an AXA MyLifeChoice VUL after more than four years of paying premiums, or is there something seriously wrong with this policy?
I also want to understand exactly how much of her premiums went toward insurance charges, fees, commissions, and the investment portion, because the numbers just don’t make sense to me.