Owning a VUL plan?That’s your ticket in—but the real financial adventure starts when you supercharge it! In this article, we’ll show you how to strengthen your protection and maximize your potential returns with your VUL plan by leveraging the cost-averaging approach and making strategic top-ups.
Key Takeaways
- A VUL plan allows you to do more with your finances through the cost-averaging strategy and top-up approach.
- Paying your premiums regularly lets you apply cost-averaging, enabling you to buy units at a lower price point and potentially give you higher returns in the long run.
- Making top-ups helps you buy more units for greater growth potential and explore other financial instruments where you want to invest.
The cost-averaging approach
One of the most efficient investment strategies you can apply to your VUL plan is cost averaging. But what exactly is it, and how does it work? Cost averaging means consistently investing in your VUL to manage the unpredictable movement of the market. By committing to pay a fixed premium amount at set intervals (monthly, quarterly, or yearly), a portion of your premiums goes toward insurance coverage, while the rest is invested in the funds you’ve chosen within your VUL plan.
Here’s how it works: When fund prices are high, your fixed amount buys fewer units (more expensive) but when fund prices are low, your fixed amount buys more units (cheaper). The goal here is for you to acquire more investment units at a cheaper price. Doing so results in a lower average cost per unit, which can lead to higher potential returns when the market rises.
Here are some of the benefits of cost-averaging:
- No need to time the market – You invest consistently regardless of market conditions, eliminating guesswork.
- Builds a disciplined investing habit – Perfect for long-term goals like wealth accumulation alongside protection.
- Ideal for first-time investors – Especially those with limited knowledge of different funds but seeking steady growth.
Power up your VUL with top-ups
Ever asked for an extra shot of espresso in your coffee to give you that extra boost? That’s exactly how a top-up works in your VUL plan! It allows you to grow your money more so you can power through your different financial goals.
A top-up is an additional amount you pay on top of your regular premium, and it goes directly into your chosen investment fund. This allows you to buy more units, increase your policy’s account value, and accelerate your growth potential.
Here are some of the benefits of doing top-ups:
- Boost fund growth – Adding extra investments means more units, which can lead to faster accumulation of wealth.
- Take advantage of market– Making top-ups when the market is down lets you buy units at a cheaper price, maximizing future gains.
- Explore new opportunities – Top-ups give you the flexibility to invest in both local and global companies* like SM, BDO, and Metrobank here in the Philippines, and Apple, Google, and Amazon in the international market.
*Holdings subject to change.
Supercharge your VUL plan with no hassle
Know you can get the best out of your VUL plan with different strategies that can boost your money’s growth potential. Vision Achiever, AXA’s expertly designed VUL plan allows you to apply the cost-averaging strategy with no hassle. You simply need to pay your premiums regularly and on time to ensure that your policy can invest in the market consistently.
Moreover, you can also add top-ups or buy more investment units conveniently using your mobile device. However, it’s best to consult first with an expert to understand the recent market conditions and determine which fund to invest in.
Supercharging your VUL plan with these strategies can give you the extra edge to gain higher potential returns while keeping your protection benefit in place. Basically, a win-win situation for an achiever like you. To learn more about Vision Achiever, cost-averaging, or top-ups, talk to an AXA Financial Partner today.
